New-York tribune., 1909-10-19
FINANCIAL MARKETS
STOCKS CLOSE STRONG.
Sharp Declines FOIlO5ced by Trad
ers' Buying Sterling Er-
change Strong.

Stocks opened strong but in the absence OF an
active demand soon developed an irregular
tendency that invited aggressive selling by the
professional element a declining level OF
prices throughout the active list, Missouri. Kan
sas & Texas New York Central and INTERIOR
ough- METROPOLITAN Offering the only important
opposition TO the movement The pressure,
which was pronounced in the second hour be-
came more marked in the early afternoon,
though there was little real liquidation, the
weakness in quotations being due more TO
operations for short account than TO sales OF
actual holdings Traders were bearish because
of the extent of the advance in the closing days
of last week and the failure of substantial in
terests to renew their manipulation for higher
prices; also TO the freely expressed opinions in
banking quarters that any attempt TO force an
upward movement would seriously interfere with
efforts the part of bankers to maintain sta
bility i'm the money market. In view of bear
pressure the decline not severe. The heav-
Test selling was in United States Steel common
but even in this issue the sales represented
chiefly a professional attack that appeared to be
Justified by technical conditions affecting the
stock, while elsewhere in the market the deal
ings as a rule were similar in character until
the late trading, when the larger number of
/ stocks gradually recovered the losses sustained
under the influence of covering of short con-
| tracts which was especially pronounced in New
York Central, Reading. the Hartman shares and
| United States Steel. the last named ending at
! a net decline of only "a, against maximum loss
of pa. Union Pacific declined 3 points in the
early trading, but closed at almost complete re-
cOvery: also Reading. Political gossip appeared
TO inspire buying of the Interborough- Metropoli-
tan shares, Wall Street figuring, without any
| solid reason for its argument that Judge Gaynor
would be elected Mayor and that his success
/ would help the traction interests. The welfare
of the traction companies in this city and the
best interest of the people who have money in
vested in traction securities, to say nothing OF
the comfort of the local travelling public will be
| advanced by the defeat of GaynOr and his Tam
many noHdescripts The buying by traders at
the close was encouraged by the easier tendency
in the call money market
| Conditions in the local money market show
/ some improvement owing to the drastic reduc-
| tiOn in loans by the Clearing House banks and
10 the large Offering of out-of town funds a re-
| Election of these operations being found in Sat
| urday's bank statement, which made a far bet
| ter exhibit than generally expected. Since the
beginning of September there has been decline
in associated bank loans of sos, ,953 5OO in the
face of active speculation in securities the
| chief burden Of financing Stock Exchange tran
| sactions having been carried by London and in
| terror institutions the latter not only lending
their balances here, but also having sent addi-
| tional cash to New York in response to the
| higher rates for accommodation Nevertheless
the movement of currency is against this centre,
/ and as loans for interior banks are almost en-
tirely in the call department of the market ii is
| conceivable that with the increasing home de-
| HdnOS lot money IN cOnnectl0n with expanding
| mercantile activity and crop marketing require
| ments a large amount of the money out on call
here soon may be withdrawn, irrespective of the
| needs of the bull element in securities An ac-
tive demand for stock market accommodation
| under present conditions in the United States
and Europe cannot continue for any great length
Of time without creating much higher rate for
| loans and disturbance in Wall Street, though at
| the moment spectators for the rise apparently
| are convinced that they conduct their opera
tlOns indefinitely without the development of fl
nancial troubles. Sterling exchange has been
| advancing in recent days, recording another
gain in yesterdays market The possibility of
gold imports is not promising especially as in
addition 70 our adverse trade balance abroad We
are heavily extended at London on direct loan
account The Bank of England yesterday, for
the first time in many weeks. was able TO secure
the weekly consignment Of South African gold
offered in the open London market and specula-
tors here and at the British capital interpreted
the operation as the beginning of the end of the
demand upon the British capital for the yellow
metal for outside account and bought stocks ac-
cordingly, in spite of higher London discounts
The slightest encouragement incites bull activity
just now but the money market still is in too
sensitive condition to warrant big specula-
tion on borrowed money.