New-York tribune., 1909-02-25
FINANCIAL AFFAIRS
STOCK VALUES HIGHER
Much of Tuesdays Loss Recouered-
Money at Easy Lerel.

Heavy covering of short contracts anu ~ oUp
mort from prominent Wall Street interests were
responsible for sharp advances throughout tie
list of active stocks in yesterdays market eiii'
Of from , to points being recorded. Inc ci"i
ec+er of the trading however did not warrant
the expectation that an active puH caIilP
had started. In view Of the extensive Ioss7S
made in Tuesdays operations the upward reac-
,ion was not unexpected; indeed, the speCuIa-
five community would have been surprised
such a movement had not developed esi'eoloi'S
as there was every indication OF an oNeleA
tended bear account, also ample evidence OF ull-
,,.;I,ingness on the part of bankers to allow the
market TO suffer further demoraHzaltoh II - ~,
efforts could prevent it. The latter poushI
+ool,s ~ rrotect the speculative situation as
we'll as to encourage an easier feeling among IN
vestors who had shown symptoms OF alarm oNei
their position a consequence OF lueSu@'
,5o,ent break in values In addition 20 support
from this source, the market was helped 10 soii4'
extent by commission house buying LOT the az
count Of customers who believed the tille Plo
i+;n,,s for q ouick turn on the long side o1
sueculation especially in the Hartman shaFes
and in some of the so-called cheap prlcto isSIe
as for instance, Chesapeake q ONO DenNei
Rio Grande American Cotton OH, missouri
Kansas r Texas and American Car ana fouh-
dry Reading closed strong at net gam oc
5ss representing little more than one-hat Vi
tho decline of tHe preceding day While Chittu
share on the list showed net advance OF "a:
The general railroad stocks ended from IA 10 d
points up and Amalgamated copper : points.
There was a further decline in copper prices, ana
no indication of the development Of an active
bu1.ing movement in the steel trade as a result
of the cheaper quotation level for hnlshed PROD
,,c+s hut the stock market paid little attention
IN these factors moving entirely under CONSIDER
atoms affecting its speculative posltloh. Inc
Erie issues were the only weak features. Deal
ings both in stocks and bonds were well uhder
the heavy business of the day peIoFe- FoIe1eH
houses again sold on balance
In Wall Street circles where close Watch mas
not been kept Of the trend of affairs in recent
weeks it is asserted that the break in STOCK
market values on Tuesday was most mysterious
and not warranted by known conditions aHect-
ipg the sDecuiative and investment situation,
but TO trained observers OF market movements
the decline presented no unusual feature ana IN
no way was an unexpected development STOCKS
advanced i'm 1908 to level wholly out or pro-
,ortion to the progress made by the country S
| Industries. The prices reached more than meas
| ,,red the recovery in money and business from
the pancl1y conditions of 1901 and the fact that
! the Improvement in values was not accompanied
| after a certain level had been established by
/ genuine buying for public account induced eau
/ ton on the part of conservative interests ana
/ created well founded theory in well informed
quarters that IL was matter of time only When
o,,o+ations would seek lower level as conse-
! sslence of an overextended long interest and
! oyerenthusiasm on the part of bull manpula-
/ who believed Indt tlS BSLeIdA ldAS III
stocks and business following the disturbance OF
the big panic would be succeeded by an i'm
mediate resumption of aggressive activity in all
| departments of the country's trade and COM
| merce The suggestion that stock market values
would be readjusted to a lower Level was made
! in The Tribune many weeks ago. The idea
| however, that values We're too high was mol
| liked in speculative bull circles, and interests
| who persistently maintained position on the
| long side of the market certain that
| their arguments were based on facts that they
| refused absolutely to credit the idea that any
| thing approaching Generalization could deYeloI
| on the Stock Exchange. These consistent bulls
| as they chose TO call themselves, were the ohle
| losers in Tuesdays market There are Variou;
good reasons in general conditions AFFECTING
| sDeculative values that favor further hquida
tion in securities, but it should be borne in minC
| tba+ already there has been a tremendou
| shrinkage in market quotations, and that prices
at this level are an entirely different proposition
| for investors than that presented few week
| ago Stocks are moving TO a level tina
| ought 10 appeal to investors
| The current Decentralization in the metal trade
need not alarm investors in the preferred stool
| Of the United States Steel Corporation. no
| should the predictions OF severe business dis
turbance pending the readjustment of tarit
schedules create uneasiness among the holder
| of the securities OF our great transportation an
| industrial companies. The country will NOV
on and Congress may be depended upon to d
nothing that will decrease the earning capacit,
| of railroad and industrial corporations upse
the generally prosperous condition of labor.
wages should be reduced compensation would b
found In a cheaper cost of living.