New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-24
FINANCIAL MARKETS
.1CTIPE SPECULATION.
L. II. and Steel Lead IN Stock Re
corcry-Sterling Rates Higher.

Opening strength in the stock market was
followed after the first few minutes OF trading
by extreme weakness on selling for the account
81 interests who accumulated long lines at the
low points last week, their operations inducing
active pressure from the shorts IL the course OF
which commission houses sold 10 a moderate
extent on orders from customers who weathered
the recent speculative storm but who evidently
decided get out OF the market on the theory
that further substantial declines were about 70
be recorded. Maximum losses, which ran from
! 70 points in the active list. attracted some
fairly good buying, and in the early afternoon
the general market showed material improve
ment, demand from the shorts being encour-
aged by wireless reports indicating that Mr
Hartman IN better condition than had been
believed Probably II IL could have been learned
definitely that this eminent railroad man had
eaten a beefsteak for breakfast there would
have been panic among the bears. Nv Harri-
man Is 70 take a further long rest, II is under
stood. and in the mean time the Union Pacific
Railroad and the general transportation business
OF the country will me- along under the in
huence % expanding industrial activities and
under the care OF men who are fully versed in
matters pertaining railway financing and
railway operating As far as Union Pacific
affairs are concerned. II is likely that some di-
recting viii be- done from Arden. Prices
throughout the list made rapid progress toward
q higher level in the late afternoon. and at the
close the leading shares were at net gains Union
Pacific ending 50 points UP from the low and
al gain for the day Of Ia Reading 31k up
and net gain OF .. and United States Steel
is up and net gain Of l. Chesapeake & Ohio.
Consolidated Gas, the Wabash issues and United
States Rubber first and second preferred also
were strong features. The chief business IN the
day came from the professional element. Buy
ing OF the Rock Island stocks suggested accu-
mutation Foreign houses bought stocks here.
taking upward OF 10000 shares
The general course OF prices in Yesterday
stock market did not reflect q disposition on the
part OF the larger Wall Street interests TO work
actively for higher quotations, though on the
early weakness evidence OF support noted
IN all the leading shares. There are reasons 70
believe that efforts will b. made 10 prevent a
resumption OF the reckless speculation that was
responsible for the decline last week. the att
tuoe OF the prominent bankers suggesting that
IN their opinion further aggressive bull opera
tons viii lead IN disturbance in the financial
community that might extend 10 the business
world. which az this particular time with our
industries entering upon e. period of expansion
that Will call for large amount OF money
would be most unfortunate. Stocks are high
enough for the present Recent favorable fac
tors have been fully measured by the improve
ment that has taken place in the prices OF Sc
curfties and II may be said without fear ~
serious contradiction that promised growth in
the country's business activities has been ade-
quately discounted on the Stock Exchange
There are no new bull arguments in sight
People who buy stocks on margin at the moment
do so with higher rates for loans ahead and
the possibilities for loss on bull accounts in a
rising money market ought 10 be well enough
known 70 discourage the sort of speculation
through which the Street recently has passed.
The Clearing House banks lost more than ST
esoOoo in cash last week, while IN spite of
active liquidation in the stock market, loans of
all institutions showed a net gain from the pre-
ceding week as & consequence OF trust company
lending, the volume OF which more than offset
the reduction reported by the associated banks
The reserve above legal requirements now stands
al 20.IZS.las. against more than S60OOOOOo at
this time a year ago The Tact that rates for
loans did not rule at high levels last fall are
made the basis in some quarters for the pre-
oicton that the market in the coming months
viii move on lines similar TO those recorded In
lsre. Last year trade was inactive, and the
interior banks held large sums OF money for
nome requirements. which were not heavy Since
that tine the interior has sent an enormous
amount or money TO New York and all intiica-
lions point 70 an active recall OF these funds in
the course OF the next three months for crop
and general business needs