New-York tribune., 1909-03-01
FINANCIAL MARKETS
LOWER STOCK PRICES.
Last " WeeAc's Lo5C LeUeI Not EqualIed
Since November, 19O8-MOnetary
and Trade Conditions.


cline was not obscure Prices sold down under
the influence Of an overextended bull account,
which for weeks had been trying to dispose or
its holdings to the public at higher figures, and
which unable to maintain its position n
the absence of buying demand and In the lace
Of aggressive operations for lower prices by bear
traders. who recognized the weakness OF the
bull account and appreciated the fact that quo
tations were at level that overdiscoEnted bus-
ness changes since the panicby times OF the fail
Of 1907 Operators for the decline made their
nova under what they called the favorable aus
pices OF certain unfavorable features in the in
dustrial situation, the Generalization in the
steel and copper trades developing at an oppor-
tune period for transactions for lower stock
quotations. On Tuesday twenty active railroad
issues broke below q well defined line extending
back as far as the end OF last November, in that
time Of more than seventy trading business
days the average price having ruled between
116 and 121. against Tuesdays average Of 1880
and a closing Saturday Of 1868. The lower
level attracted some fair buying. but the chief
purchases were for short account and for in
terests who placed supporting orders in order
TO prevent q runaway decline. the so-called bar
gain hunters failing TO appear in numbers and
commission houses receiving little genuine in
vestnent business. buyers of this class doubtless
accepting the well defined idea that q lower
range of price would be recorded before anything
approaching q sustained upward movement
could be brought about Commission houses
sold large amount Of stock in the week for the
eccoant of traders who had bought at higher
figures and who either were unable or unwilling
TO maintain q position the long side IN a
market that apparently dominated by bear
epecuIators with heavy financial resources be-
hind them The bear party was better organ
lzed and showed greater ability to reach results
than aI any time since the disturbed markets
Of 1907.
Prices are now at a level that makes invest
Inent purchases far attractive than they
were at the opening OF the year. And the same
thing may be said for speculative purchases,
though many careful observers believe that a
further read dJustment toward a lower range must
be brought about before there can be an i'm
portant resumption OF consistent bull activity.
While conditions IN the steel and copper indus
tries have entered a new stage. which means
price cutting and temporary Generalization in
the trades with the possibility of lower wages
and attendant uneasIness the part of labor.
careful survey OF the current situation and the
factors that must govern its future discloseS
little that should discourage the business COM
munity al large and nothing upon which in
vestment holders of the first class copper and
steel shares can base g good argument for a
sale Of their securities. Pending the settlement
of the price and the tariff there doubtless
viii be opportunities for successful attacks upon
stock market values, and, according TO some
Wall Street observers, no surprise need be felt
If United States Steel common goes into the
low SOS and the preferred in the neighborhood
OF par while Notwithstanding the decline that
already has taken place in the copper. smelling
and lead issues, there are reasons TO believe that
further losses will be recorded In them, espe-
ciaIy as professional traders appreciate the fact
that general fundamental conditions are strong
and that later in the year there will be marked
revival In the metal business and in all lines of
trade. Bear operators have an opportunity now
that may not present itself in the second half
of 1909. and from all indications they do not |
intend to allow it to pass unnoticed, though a
Taft boom is scheduled by the bulls for this |
week Investors do not appear 20 be worrying !
over the outlook. and just as long as they main
tain their courage and attend to their regular !
business with the confidence that the country |
viii go ahead irrespective OF passing unfavor- |
able developments. for instance, the compare |
tive idleness IN various industries as conse-
quence OF the uncertainty regarding the changes |
that will be made In import duties, stock de- |
cIines should be orderly. And declines now will |
be the harbinger OF higher prices and greater |
stability at future period. And the declines in |
the prices Of steel and copper also will fore |
sha dow generally healthier conditions in our /
great metal industries.
Willis Wall Streets speculative element is |
playing with the stock market in the hope, per- |
haps, OF shaking the confidence Of investors, |
the real factors affecting intrinsic values do not
present reason for uneasiness. There IS nothing |
in the situation or outlook that will reduce the |
investment worth Of our securities, and though |
the country's business still is being conducted |
on lines far under the normal the reports from
many sections show conservative progress. a re-
Election Of which is presented in railroad earn
ings and bank clearings which making far
better returns than those at this time year
ago, when such extensive depression prevailed.
People who intent making themselves
over current conditions compare
the present state OF trade with that IL the pros
porous period Of 1906, and they therefore con-
clude that we are still IN condition of panic
because things are not so good now es they were
two and three years ago, when the nation was
enjoying the greatest industrial activity ever
recorded, failing TO IN existing business con-
ditions all the elements that eventually must
make for another time OF prolonged prosperity.
Railroad companies are issuing new securities in
large volume on the firm belief that the addi-
tional obligations involved will be more than
taken care Of by expanding earnings from in
creased business growth throughout the coun-
try. from increased population, from continued
large crops, from which the best part OF the
world must draw its supplies, and from closer
understanding on the part OF the companies and |
the public Of their mutual needs which will be
an important factor in checking attempts at
hotheaded and unwise railroad egislat' on which
some lawmakers in the recent past have en-
deayored to effect a basis Of condscaton-
Since the first Of the year new securities have
been authorized 20 the amount Of more than
$500 900 600. and the only danger in the move
ment lies in the possibility OF Its being oVerdone
to an extent that will cause serious congestion
In the market
There was no important change in local money
I
Withdrawals for government account from the
depository banks. The demand for accommoda-
ton was extremely light from mercantile and |
stock market sources. while result Of the
in securities a heavy contraction in |
loans was accomplished The supply OF COM !
merciaI paper was light, but the demand for
high grade names was active, without any in !
iication Of a material increase in the supply in |
the course Of the next few weeks. The condi-
ton Of the federal Treasury viii be something
1f = factor in money market considerations
from on, owing TO the low national deposits
IN the banks, the heavy Treasury deficit and the
constant eNcess of eNnenditureS over receints