New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-16
FINANCIAL MARKETS
BIG MEMS SPECULATION.
Stocks at Fancy Prices-Money
Rates Hardening.

New high levels were made by many STOCKS
last week. while the general average OF quota
| lions reached a point only a trife under the
/ record figures Of the bull market Of 1906. the
rise being based upon an active public buying
| movement and aggressive manipulation by sub
| stantial interests who have enormous lines OF
| securities for distribution on all advances. The
public is taking stocks at prices that year ago
| appeared wholly improbable II is buying issues
that IL would not touch when quotations were
from % so points under prevailing levels. and
/ from the disposition exhibited by this element
| IN the week just closed IL appears safe 10 pre-
dict that il will continue TO buy just as long as
the powers behind the speculation have shares
for sale at fancy figures Most stocks are selling
! at q range that represents a small return as IT.
vestments but little investment buying Is re-
| ported the chief transactions being entirely Tor
the account OF people who are operating on Dor
rowed money with the expectation or making
| profits by the liquidation OF their lines at tne
| higher quotations promised by the interests VINO
are the chief factors on the selling side ne
ports and rumors that make cheerful reading
! for stock market bulls multiply daily. The CHAR
acter of the Wall Street news inspires conn
| dence among the little fellows who never buy
/ at bargain levels. and though technical conol-
| tions are growing weaker every day ana the
outlook favors a period Of dearer money. specu-
| lative enthusiasm is at the boiling point with
no consideration taken of the possibilities or a
serious slump in prices. Reiteration OF the dan
/ gers involved in a market that has been advanc-
/
| hacks fails to convince the operators who are
on the quest for what they believe are certain
profits while the advantage Of holding ones
money for the time when prices will be forced
lower as a consequence OF overspeculation and
higher rates for loan accommodation appeals
only TO the conservative interests who at the
moment apparently in the minority. The
advanced range OF prices, however. is attract
ing sales of stocks that have been held with
such a market as the present one in view. these
Including large prODOTtiOn of stock
actually owned a reflection of which is found In
the activity in transfer Offices. where certih-
Gates for both small and large lots are being
transferred from individuals TO the account OF
commission houses.
A powerful combination of capital is working
for higher prices. but its campaign does not pre-
clude the possibility of sharp declines. Its eff
forts 10 attract the public have succeeded. and
now that the market has into million share
days the opportunity is offered for distributive
sales, which means the passing of stocks from
strong TO weak hands and the gradual weaken
ing of the bull props TO a final accompaniment
OF heavy losses for the people landed at the top.
II is not unlikely that before the bull movement
runs its course daily dealings will reach more
than 100000 shares but when markets OF that
sort develop the collapse may be looked for.
Wall Street enthusiasm, OF course. reflects the
strength of outside conditions. while the adj
vance in stocks serves 10 increase confidence
in business circles. though It does not induce
level headed men TO invest their funds in Sc
curities current quotations, except in the case
of few issues. including some railway and in
dustria mortgages. which are still selling at fig
ures that represent a reasonable return. The
advance in stocks has pretty thoroughly dis
counted the improvement that has taken place
I'm the country's industries and the expansion
that may be looked for in months TO come. but
in period Of easy money and active manpula-
ton by powerful financial interests. the ques-
ton of stocks being too high. measured by
income yield and business growth. is not pop
uar one in the Street. Easy money will not
run forever. and already there are indica-
tions OF change that VIII permit the lending
institutions a far better price for their
funds and incidentally cause shifting and
liquidation Of loans that may go hard with the
operators who are heavily committed TO the bull
side OF the stock market margins Condi-
lions governing investment values are sound.
and the outlook promises greater intrinsic worth
for all our leading securities. Railroad and In
dustrial corporations that need additional funds
in connection with their expansion policy will
find little difficulty in securing the accommoda-
ton required and the forthcoming output OF new
securities this account will furnish excellent
opportunities for permanent investment opera
lions. Bond houses expect large movement
Of capital into this class OF securities In the next
few months. there are few old issues that
look attractive at ruling quotations for the in
weston.
Time money was firmer last week. while call
funds advanced to pa per cent for the first time
in several months. Domestic exchange AT most
points moved against New York. but sterling ex-
change declined TO a level that apparently elm
mated the possibility Of further gold shipments
TO Europe and left little chance for a resump-
tion Of the movement TO Argentina. In view or
the unfavorable conditions that have prevailed
for so many months in the country's merchan-
disc export trade, the prospects of bumper grain
crops deserve especial consideration in discus
sions relating to the future of the foreign ex-
change market. surplus of grain available
for export is needed. owing 10 the fact that the
United States has been in debt on international
exchange account, and the tendency of grain
prices toward a lower level encourages the
pectation that there soon will be more active
outward movement of breadstuffs and good
demand for the new crops. which promise 10
be enormous Even winter wheat, which early
in the season looked like a failure. has come
through the season with encouraging yield
while the total Of winter and spring wheat from
all indications will not be far under the best
harvest ever reported Corn will break all rec
ords. Cotton. evidently. will be short, but the
deficiency in the yield will be offset by the
higher price which IT will be sold. There
were grain bills in the market last week against
future shipments. and the exports of wheat, in
Guiding -four showed a gain over the preceding
week of 201.l97 bushels but loss from the same
time last year of I,e74,517 bushels In addition
TO the effect upon the exchange market OF the
offering of grain bills. sterling rates were helped
10 lower level by the heavy buying in the
stock market for foreign account In the
months ended July 81 exports of domestic
products from the United States declined In
value $50 4s3,Os5. while there also was a large
falling off in exports Of general merchandise at
a time of increasing imports. The advantage of
a heavier export trade is apparent especially
the money market enters the crop moving
period without the backing of a national credit
balance abroad.
Union Pacific made new high record last
week. and il found good buyers above 21O AS
the issue lays 10 per cent dividends. with the