New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-14
FINANCIAL MARKETS
MOST STOCKS DECLINE.
Nelc High Records for Union Pacific
Banks Lose Cash to Interior.

Selling pressure in yesterdays stock market
heavy enough 10 check the upward move
ment IN the general list, though IL did not en-
courage the expectation in speculative circles OF
a cessation OF bull activity. Indeed, there was
so much evidence OF indiscriminate buying at
'the opening that conservative traders put out
lines OF shorts the theory that. while the bull
campaign would continue. the larger interests
soon might operate for temporary lower prices
for the purpose OF shaking out a weak public
following in order TO strengthen the technical
position Of the market and pave the way for
further aggressive advances. With the excep-
ton Of Union Pacific common and preferred.
Peoples Gas. United States Rubber and Hooking
Valley stocks sold off I'm the best part OF the
day recovering a small part OF the loss before
the close covering OF short contracts more
than on new public buying. the heaviness that
started soon after the opening apparently chill
ing the buying ardor Of the outsiders. IL stocks
sell off an eighth or a quarter the commission
house trader sees a panic ahead. but II they
lump up a point between sales il is practically
impossible 70 restrain them from buying Union
Pacific stock both common and preferred, Of
fered a conspicuous exception TO the general
downward tendency, the net advance OF 5B IN
the common and 9I in the preferred on dealings OF
more than 267,00O shares being accompanied by
further rumors regarding the intentions Of the
directors in the matter Of the securities segrega-
ton plan and the disposition Of the companys
large cas-. balance. but by no actual news. When
OF Importance in the Union Pacific situation. and
possiblv before that time. In the meanwhile the
Union Pacific mystery will furnish 1000 Tor
speculative gossip which naturally VIII be along
lines that doubtless will encourage the purchase
Of the stocks. notwithstanding the violent adj
vance that already has been recorded Union
Pacific common may be a good speculation for
CAPITALISTS but IL has reached dangerous lever
for small margin traders
In the current week the local banks have lost
on their operations with the interior for the nrst
time this season. shipments TO out-of-town
points exceeding receipts by about 100000
against a gain on the interior movement last
week of a trifie more than that amount For the
week ended July Is there was gain of $1,000
600. but In each subsequent week receipts have
declined while shipments have increased until
now the flow is in the other direction. with all
indications pointing TO expanding outgo in
the next two months in response 20 crop and
general. business requirements. The idea that
the interior will be able 10 finance its harvests
needs without calling upon New York for funds
Is advanced, usual. in quarters where the de-
velopment of higher rates for money would
riously interfere with bull commitments in the
stock market but from the known position Of
the banks in other cities and from the estimated
size OF this years crops. to say nothing of the
probable development OF a period of great in
dustrial activity. there is excuse for the the
DRY that this centre will not be compelled 20
send large amount Of money TO the West and
South in the autumn. In the last eighteen
months the New York banks have gained net
the interior currency movement more than s270-
100000. a large part OF which has been employed
in the speculative and investment markets. In
the same time the New York banks have
financed a heavy gold export movement. and tc-
Cay the cash holdings Of the Clearing House in
situations are considerably less than they
at this period a year ago. while the
above legal requirements shows a falling OFF
from this week in 1908 of ss3,27s.675. based on
the figures Of last weeks bank statement IL is
not unlikely that to-days bank figures will show
material contraction in reserves. on the gem
eral movement Of money there has been loss
IN cash OF s2.625,00O. and evidently large ex-
pansion in loans as consequence of the great
activity in the stock market. Conditions in the
money market do not foreshadow al the moment
any sharp advance in loan quotations. but a
gradual hardening Of quotations may be looked