Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-06-18
FINANCE AND
COMMERCE
wall street.

New York, June 17.--speculativc
deflation which took on the symptoms
OF collapse, was effected in the stock
market today. The s~uddenness and
violence of the break in prices came
as a surprise in spite of the express
sions of distrust lately of the high
level of prices and of the extent to
which borrowed money was being
used to carry stocks on margins.
The bear party in the speculation
which undertook operations on the
short side based on this situation has
met insuperable opposition so often
in the shape OF powerful support of
The market that the ability to hold
prices or. advance them had come to
be relied upon. The withdrawal of
that support undoubtedly was an inn
portant element in the weakness
which swept oven the market today.
or course as the decline proceeded the
flood Of liquidation was very much in
creased but ii was not notably heavy
al the outset. The opening selling, in
fact, was well absorbed and an effec
tive rally achieved. At that point stock
began to come out again partly from
those important interests which
bought yesterday to check the threat
med disqualification then, and which
sought the earliest opportunity to re-
sell their takings and partly from the
organized bears who had strengthened
their position by large covering opera
tons. AS prices crumblcd away. mar
gins we're wiped out ana stop loss or
ders uncovered and soon after mid
day the market was demoralizcd.
Developments in the copper trade
have impressed sentiment very unfa
vorably owing TO the suspicion that
specultive forces have been At worE
in the market for the metal to su,-
ain the s%peculatio in stocks. Cu-
ropea ncoppc trade statistics show
how n large part of recent and cur
rent American exports are going into
warehouse stocks abroad rather than
into consumption.
This showing had an effect on sen
timent regarding the steel trade
where the current active demand
still continues but with the possible
ity as in the copper trade, of an ac-
emulation of stock that may pre-
iudice later demand. The later stages
of the movement to secure admission
of United States Steel to the Paris
Bourse have made a bad impression
in spite of the protestations Of bank
crs of their confidence in the III
innate success of the plan.
Some of the sellers of stocks pro-
fcssed apprehension that President
Taft's message regarding an income
and corporation earnings tax might be
a prelude to revival of agitation
against corporations. The paragraph
dealing with the incidental advantages
o fthe increased powers of inquisition
into affairs of corporations growing
out of the proposed tax on earning@
seemed TO be regarded as of sinister
Importance ito corporation manage
mcnt.
This realization applied to the stock
market as a whole and had much
more to do with the days heavy
liquidation thansEs- fresh incident IN
the news. The extensive covering by
shorts in the process of realizing
bear profits retrieved Il substantial
part of the extreme declines which
ran TO 3h and notably ) points for
the stocks most acutely affected. The
closing tone OF the market was unset
tied again. Closing stocks:
amt. DL. t4Aa n