Norwich bulletin., 1909-02-19
FINANCIAL and COMMERCIAL.
ACTIVE SELLING.
Severe Inroad on Prices Resulted
Downward Course at Close.

New York, Feb. 1S.-The stagnation
tt&t has prevailed in The stock market
was changed today into an active sell
ing movement without any counter
balancing demand to meet it. Sc
we're lnroad on prices was the conSe-,
quence. The whole market hinged Gf
the developments in the steel trade.
While no formal announcement was
made during the session of the stock
exchange. 1t was ger orally known that
conferences were going on amongst
officials of the United States Steel
corporation which were likely to issue
in changes in the schedule of prices
which has been determinedly held by
the corporation. The notable effect on
sentiment produced by this develop
ment owed its Importance to its
abrupt reversal from the supposed de-
termination of the corporation to hold
to its former policy The impression
has been caused that the leading in
terests were SO intrenched in power
and control in the trade that they were
IN position to avoid the concessions
usually made necessary by a severe
contraction of demand. The unsettling
effect Of falling prices, it was sup
posed, were to be evaded and as early
revival of trade activity was looked
forward to set the wheels Of the in
dustry going, reports that the indepen-
dent steel mpani7s were making cons
cessions and We're getting what bust
ness was going were met by depreca-
tory comments on the small proportion
of such business to the capacity Of the
trade at large and its lack of signif-
canoe as reflection Of trade cOndi-
tons. A different view of the situa-
ton seems to have been adopted some
time yesterday. The stock market
promptly took up the burden Of this
reversal OF policy and began to dis
count an expected cut in steel prices
The position was complicated bv the
fact that the market prices of the
stocks Of the United States Steel cor
poration had been held up by the main
force as well as the prices of its
product Since the common stock was
allotted to the corporations employees
at fifty there has been a widespread
assumption that adequate support
would be given in the market to pre-
vent the price falling below that point.
The belief that the position so long
maintained by the leading steel inter-
est was about to be abandoned under
mined the whole market. 1t was SUD
plemented IS a factor by the fears that
the state of E H Harrimans health
was not such as to enable him to carry
out the projects which have been a
main incentive to speculative conf
dcGce on the part of a large element in
the market. 1t was a notable fact, at
the same time, that other stocks in
voINcd in Mr.. Harriman's supposed
plans were amongst those which show
ed some degree OF resistance to the.
prevailing depression. There was a
show Of frmness also amongst the
copper mining and refining stocks m
spite Of further marking down in the
price Of the coppcr metal in New York
and London. The progress of the dis
pute over freight differentials between
Boston and seaboard trunk line tcrmi
nails to the south had some disturbing
effect. The extent of the declines in
vited some large buying around the
low levels by the bears in the taking
of their profits on the short side This
rallied prices and considerably reduced
the extreme declines, but the course
was downwards again at the closing.
Bonds were easy. Total sales, par
values, s4,496,00G. United States bonds
were unchanged on call