New-York tribune., 1909-10-20
FINANCIAL MARKETS
RE>fR TRADERS ICIN H.
London Heavy Seller on Local Stock
Ercbapgc-lStcrIimg Rates AdU0nce'

-, :,,,o,,co ~ money market conditions anu
.,,o cumulative effects of long perlou ol 80
speculation in stocks again We're .N1 THE
cii,,ipp prices for most securities Nesuelu ;s
aa1-ness Il, the general list was acco'hla
t,, various rumors that bore the ea~Iiiiai ~ N -
irresponsible bear gossip, and the iact .rI 'n"'
hear element able to secure . -
,,oaripr,, in various quarters of the street cie
.d a., ;,,,,,ression that, for time at least tIe
,arger buIl interests would not INTERFERE VIZ.
dovynvrard movement owing TO the laclo. ! -0 60
a4 the opening OF this review Opei iaI.o'0
1o,.,er nrices were helped by heavy selIIls Aoi
siv, account on the loca! exchange ana hquI-
aation of American securities in LONDON, Whi4e
further strength lin sterling exchange a4sO III
couraged professional traders TO hammer prices
,,itb the effect of bringing a cOnslderape
,,,t % stoclx from commission houses upon
the market offerings of United States Stee!
Union Pacific New York Central. Reading ana
Amalgamated Copper being particularly heaNy
Trading lighter in volume than IN MOI
davis operations and of the total in all stocks
the larger part was supplied by fifteen issues
the dealings in United States Steel common
being far in excess of those in any other Sc
curity and about one-fOuTth of the transactions
in all shares. London put out large amount
OF Steel and traders were active in selling it
down throughout the best part of the day, but
in view of the extent of the selling the decline
in its price was unimportant, the closing quota
tion showing a net loss of only a point and
fraction. The Interborough- Metropolitan shares
lost nearly much they gained on the pre-
cedng day. while other weak features
supplied by Amalgamated Copper, Chesapeake
& Ohio, Missouri Kansas & Texas. Reading and
Union Pacific. Rock Island showed relative
strength. and il is likely that II the figures OF
the company's annual report. which are pub
/ shed elsewhere in The Tribune. had been
known the issue would have been in even better
/ demand Southern Railway stocks were strong
and further sharp advances We're recorded by
the express company issues. wells-Fargo gain
/ ing % points, United States Express 13 points
and American Express points. Tn the late
/ trading stocks declined On small offerings and
! the closing was weak and lower
Conditions in the foreign exchange market
arc disappointing TO the people who have been
counting on a flow of gold from Europe TO the
| United States in the current autumn hu+ they
! present nothing that has not been pointed ont
| IN this column at frequent times in recent
months. and while unusual for this period Of the
! year are not unnatural in view OF tho long pre-
/ yaiing adverse foreign trade situation and the
enormous loan commitments made by Wall
! Street i'm London through the medium of finance
/ bills. Present high rates for exchange in
| dcate that tho time has arrived when these
! debts 10 a certain extent must be liduidated
especially there has been drastic advance
! in foreign discounts and though orr exports Of
! domestic products increasing tho improve
/ ment is not great enough to make a material
impression upon the quotations I'm the sterling
market. which are now nearer the gold shipping
/ point than the importing level. II does not an
II
| Ice renewed TO any important degree Nor does
/ IL appear likely that Europe will buy America n
| securities to an extent that will offset our OBJ
| legations abroad on direct loan account The
Clearing House statement of last week fortu-
/ nately showed q stronger local bank Dostion
than recently reported. but the gain I'm reserves
| in the face of an unfavorable foreign exchange
! situation hardly warrants an active bull sDecu-
! lation on the Stock Exchange AT the present
time in spite of the recognized strength of con-
! dtions underlying the value OF American in
vestment issues. 4 quiet period in stocks will
serve TO increase the chances OF A broad and
advancing market later i'm the season There
is reason 10 believe that the substantial hank
ing interests are endeavoring TO discourage
active bull operations. and they are in CON
trol o. the machinery that makes aggressive
speculation possible il will not be "A matter If
OKerwOrk on their part to prevent reckless
transactions that depend upon bank credits for
success. The higher rates for money reflect a
healthy condition of affairs i'm our Industries
and no objection can be made by business men
10 the current price for accommodation hut ~
oyerspeculation is resumed the money narl,e,
will develop a situation that viii contain nos
sibilities of embarrassment for our merchants
and manufacturers.