Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1909-10-06
FINANCIAL AND COMMERCIAL,
CONFIDENCE JARRED.
Points of Strength Here and There. but
Tone Was Deprsssed-FinaI Violent
Break in Prices.

New York, Oct. 5.-Speculative con-
fidence was Jared today by the dis
covery of a vulnerable point in the
market position in United States Steel.
Moreover, the call loan market, in
stead of relaxing as the date of the
October money payments recedes, rose
today higher than on Friday, and, by
consequence, higher than since early
in 1908. The rate touched six per
cent. There were points of strength
still here and there, but the prevailing
tone of stocks was depressed and I'M
certain. The constant succession of
new high records in United States
Steel has encouraged presumption
that the market protection for the
price was invincible and that uninterz
rupted progress to par or above was
an assured fact. 1t appears, however,
that a growing proportion of the spec
ulative buying in the recent past has
been accompanied by the precaution Of
a stop-loss selling order, placed at a
given point under the purchase price.
An element amongst the professional
spectators learned of the existence of
these orders in large volume at about
go and again at 81. By offering the
price down to these levels they saw
opportunity for profit by buying into
cover their short sales while the STOP
loss selling orders were being executed.
The result was drop in United States
Steel of over four points from yester-
days high level The most disconcert-
ing feature Of the movement to the
bulls was the lack OF demand for the
stock at the most precipitats stages OF
the decline. Concessions of half a
point was made without willing buying
orders-a violence in the consecutive
huctuation unusual in SO active stock
as United States Steel and in which
the market is broad and constant. Be-
low 81 the support of the stock be-
came effective again and the price rail-
lied. Movements for the rest of the
day were notably lacking in decision
and the whole market was greatly I'M
fsettled in tone with a final violent
break. Oracular intimatioHs were set
a1oat of important developments i'm
pending In the financial affairs of the
United States Steel corporation, but
they did not avail to revive strength
in the stock. A considerable liquida-
ton of speculative accounts must have
been effected by the active selling dur
ing the day. but the money market
was not eased CORRESPONDENCE. For
eign exchange rates, which would be
yielding to the gold import level in
ordinary seasons, now hold steady in
spite OF our tightening money market.
A notable point Of strength in today's
declining market was New York Cen
trail. The rise was attributed to
tightening of the meeting which is
expected to elect a successor to the
late E. H. Hartman on the board of
directors. The strength of the Fries
was regarded as sympathetic to an
extent. The renewed discouragement
over the statistical position of refined
copper and fresh decline in the con-
sumptive demand made up part of the
days market material Call money,
by rising to six per cent, belied the
assertion of number of bankers that
the rate would not go higher than five
per cent for the remainder of the
year. The market closed weak and in
come excitement. Bonds were irregu-
lar. Total sales. par value, s4,0S6.000.
United States bonds were unchanged
on call