New-York tribune., 1909-05-06
FINANCIAL AFFAIRS
PROFIT .S4LES IN STOCKS.
Prices Shoe Resistance TO LlqUldd-
ton and Bear PressurG-HOney
Rates Unchanged.

Stock market values made little progress in
either direction in yesterdays trading. though
al the close the greater number of issues showed
small net losses. There were, however strong
exceptions and. : a matter Of fact, the whole
list presented a relatively firm tone, in view Of
the extensive liquidation on profit taking opera
tons reported. Bear traders professed to find
encouragement in the fact that the general list
did not repeat its performance Of the first two
days OF the week but the actual movement OF
prices was in favor Of the advocates of higher
quotations, it disclosed the presence in the
market Of a remarkably strong buying power
and a resistance TO manipulate for lower quo
tations that is found only when substantial Wall
Street and public operators are operating for
better values. Southern Pacific to new
high level trading that suggested aCcumula-
ton. and, with Chesapeake & Ohio, United
States Steel preferred and the Wisconsin Central
issues, furnished the chief exception to the
dictionary tendency in the afternoon dealings.
Steel preferred made new high record at 1875
on the best sort OF buying, made up in great
part of investment transactions. Traders worked
overtime in efforts to induce active liquidation
in Union Pacific and Reading. the net result of
their operations being a loss Of point in each
stock, while elsewhere in the active list losses
when recorded were confined to fractions. Room
traders were sellers Of Reading, but the response
from other sources unimportant, while the
same thing may be said of the trading in Steel
common and Union Pacific AS a rule, the in
dustrial shares were firm features, with
high prices the current movement recorded
by American Car and Foundry. American Loco
motive and the United States Rubber stocks.
Money market conditions showed no important
changes, call and time funds remaining the
levels Of the preceding day. Sterling exchange
strong and at the gold shipping level,
strength in the market being helped by further
selling by Europe Of American stocks held on
speculative account.
Stock market values are higher than at any
time since the fail of 1906 when quotations for
q brief period were only slightly under the best
level ever recorded, which was in January Of
the same year The leading railroad shares at
present are At an average price of 124.30, while
the chief industrials show an average of 1925,
which compares with a high of 109.64 for the
railroads and $3.50 for the industrials in May,
1907 the records for that year, and 1886 and
103 for the railroads and industrials, resptC-
tiVcly in January 1906. The figures Of the year
just named de under industrial con
ditions that showed great prosperity in all
branches Of the country's trade, and were not
considered excessive except in i few instances
but from the record points Of that year the gen
eral tendency was downward. though accom-
panied by frequent periods of strong markets,
as, for instance, IN September 1906, when a
furious bull speculation reported, and in
May. 1907, when the market rebounded from the
effects of the March slump. the latter marking
the first real warning of the trouble that de-
velOped in the following autumn. The current
bull movement, which started with quotations at
the lowest in 4 decade, has been under way
with only minor Interruptions for more than
year, though in the greater part of that time
there has been no corresponding Improvement
in the business affairs Of the nation. Active
cuperaton from the destructive effects of the
panic of 1907 has been in progress for several
months. but the beginning OF this movement was
fOTeSeen in the financial community more than
year ago as reflected in the course of securi-
ties values. which have advanced in that time
from p to 80 points among the active issues,
with current indications suggesting the advance
viii be carried further. though existing levels
the market does not look safe for spectators
of limited means. There are no active big bears
in sight and the absence OF a large short inter
est is a weak feature in the markets technical
position that should be borne in mind at a time
when speculation is tending toward an over
bought position.
There are good arguments why prices
should seek permanently lower level. but with
each successive advance the speculative situa-
tOn becomes weaker and more exposed to at
tacks from powerful operators who may have
tractIve figures the anxious bidders for them
quotations Such operation would be wholly /
in line with precedent but it is not likely the |
great financial interests who have vast plans for
new financing in view will permit anything in !
the nature of "A prolonged decline if they can /
prevent il. A big slump however. would be a |
probable accompa niment of any adverse deVel- !
opment Such things often OF "A clear |
sky, and while recovery in prices follows the /
downward movement carries with it sickening /
losses 10 the operator caught margin a: the |
top. Viewing the market from the investment |
point there is every reason for announcement