New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-31
FINANCIAL MARKETS
FIVE-POINT GAIN IN L. u.
Retreat by the Bears Helps Prices
Better Demand for Time Money.

Active buying by the shorts and the presence
in the market of support from prominent inter
ests were responsible for a strong opening on
the Stock Exchange. prices showing advances
of from i to points Saturdays closing.
while in the course Of the first two hours OF
trading further Improvement reported. with
the chief strength in Union Pacific which en-
joyed a maximum gain of SIS points and net
gain of 5. At it's high level this issue So
points above its low figure in last weeks mar
ket and II points under the best OF the year.
made two weeks ago at PIG. In the general
list advances from Saturdays break represented
handsome profits To the people who bought
stocks on that movement and at the high range
made At midday realizing developed 10 an
tent that brought about reactions in all the
leading issues, though in view of the substantial
earlier gains the declines were unimportant.
There little public buying and the ad-
covering movement apparently completed
in the first two hours of business. and upon
the exhaustion OF the buying power from this
source traders were not inclined TO take an ag-
gressive position either side except in the
case OF few courageous operators who put out
lines Of shorts the theory that the ad-
vance had been oveslOne and would not hold IN
the absence Of outside buying or aggressive eff
forts on the part Of the banking interests 10
bring about a resumption of bull activity OF
which there was no indication The anxiety
among the shorts 20 at the opening was
based upon the cheerful reports from Arden
and upon a realization of the vast Improvement
that had taken place in technical market con-
ditions a consequence Of last weeks readjust-
ment of prices TO lower level. II was ru-
mored early In the session that a statement
would be made by Mr. Hartman before the
close Of business. and a strong ending in the
general market was based upon a reassurng
telephone message for the press from the emil
nent railroad man.
Domestic exchange at interior points contin-
ues 10 move against New York. the rate at Chi
cago yesterday standing at 80 cents discount
compared with a substantial premium a few
weeks ago And while domestic exchange is
turning in favor OF the West and South foreign
exchange shows abnormal strength for this
period OF the year. Bank statement figures in
Saturdays Clearing House exhibit not only
failed TO reflect in a reduction In loans the heavy
selling on the Stock Exchange in the week, but
indicated expansion In loan operations without
the accompaniment OF any known special fnanc-
ing. the gain In the item doubtless being due 10
an increased mercantile borrowing and 10 the
transfer Of stocks from weak TO strong hands
through the medium Of new loans TO the larger
interests who practically We're compelled 10
come into the market in order TO prevent com
plete speculative Generalization. Technical
conditions have been materially strengthened by
the recent liquidation in securities. but il does
not appear probable that with the outlook ia
voring higher rates for money, with the possi-
bility of brief period of stringency the larger
financial interests will countenance an ag-
efessiNe DUH movement IN the month of Sep
TENDER, nor is il likely that the public after IT'S
recent experience I'm the market. will care TO
take further risks at the moment. In spite of
the declines already recorded. prices are still
100 ngh at a time when loan quotations prom
Use 10 advance for active marginal transactions
on the long side of speculation. and il is con-
ceivable that in the event of RESUMPTION OF buIl
manipulation a collapse would follow with far
more serious results than those Just recorded
notwithstanding the unusually strong position
OF conditions governing the intrinsic value OF
American investment securities The position
or London in the current market is an indeter-
minaple factor. Its purchases on arbitrage &C.
count In recent weeks have been fairly large.
qua I'm the sterling exchange market there Is no
indication OF the actual passing OF large blocks
Oh stocks TO European hands. There is a great
scarcity of exchange available for the current
needs OF The market though the supply yester-
DAY showed Improvement, while indIcations
point 10 substantial increase at remote time
as consequence of an expected active outward
movement or food products. Time money was
hriner yesterday and in better demand