Omaha daily bee., 1909-10-06
NEW YORK STOCKS AND BONDS
Vulnerable Point in Position of U. S.
Steel Jars Spectators.
CALL MONEY RISES TO 6 PER CENT
steel Common sells OFF Several Points
Untn = Reaches 81, when
Market Is supported and
Rally Ensues.

NEW YORK. oct. 5.-Speculative conf
dence was Jared today by the discovery
OF a Vulnerable point In the market posi-
ton in United States Steel. Moreover. the
call loan market, instead OF relaxing as
the date Of the October money payments
recedes' rose today higher than on Friday,
ana by consequence, higher than since
early in 1905. The rate touched s percent.
Inc constant succession of new high re-
cords IN United States Steel has encourag-
ca a presumption that the market protect
ION Tor the price was inevitable and that
interrupted progress to par or above was
an assured fact. 1t appears. however, that
a growing proportion of the speculative
ouylng IN the recent past has been &C
Tompanied by the precantion Of a stop
Ioss selling order, placed at a given point
uhdef the purchase price. An element
amongst the professional SPECTATORS learn
ed OF the existence of these orders i'm large
volume at about % and again al 81. BY
ottering the price down to these levels
they saw opportunity fot profit by buying
u to cover their short sales while the stop
loss selling orders were being executed.
The result was a drop in United States
steel OF more than -four points from yes
terday's high level. Below, 81 the support
OF the STOCK became effective again and
the price rallied. Movements for the rest
OF the day were notably lacking In de-
cision and the whole market was greatly
unsettled In tone with a final violent break.
Oracular limitations were set afloat of
important developments pending in the fin
ancial affairs of the United States Steel
corporation, but they did not avail to
revive strength in the stock. A consider
able liquidation Of speculative accounts
must have been effected by the active
selling during the day but the money mar
ket was not eased correspondingly. The
S,ZlS,OO which the sub-treasury has alb
sorbed since the. last bank statement is
about obliterate the slender surplus reserve
then actually existing,
Ihe flood of merchandise imports con-
tlnues and the exports do not grow,
while the foreign lenders of money seem
10 hesitate about extending further the
huge credits given American borrowers.
Ihere has been some transfer Of bank
ing credits also from New York to in
terror points, according to the views Of a
well known banking authority in Chicago.
An approach to the limits Of this resort
Is also indicated, although there was q
recovery in New York exchange at Chi
cago today from 40 cents to IS cents dis
count per $1,000.
Financial markets are looking for i'm.
portant new issue Of securities at an early
date, but the method OF money market
supply for these floationsis is not clear
at present. A notable point Of strength
Ia today's declining market was New York
Central. The rise was attributed TO the
lmminence of the meeting which is eX-
pected to elect a successor to the late h.
II. Hartman on the board of directors.
The strength of the Erles was regarded
as sympathetic to an extent.
The renewed encouragement over the
statistical position of refined copper and
a fresh decline in the consumptlve demand
made. Call money by rising to six pei
cent belled the assertion of a number OF
banks that the rate would not go higher
than five per cent for the remainder OF
the year. The market closed weak aand in
some excitement.
Bonds were irregular. Total sale PAL
value A,0S6, 900. United States bonds were
unchanged on call.