The Washington times., 1909-10-10
MARKET POSITION
AIDED BY SETBACK
Short Interest Established.
Some Cautionary Signs.
Stocks Still Well Held.

NEW YORK, oct. 10-Unouestionably
the future of the stock market has been
bettered by the clean-out and the clean
up OF the last two weeks The technical
position is today much better than II
was a week ago. Many pools nave
liquidated and much stock that was
pyramided on the way up has been soiu
out. A short interest, the one thing
missing on the late steady. strong bull
market IS admittedly large at this time,
the borrowing demand in the various
leaders indicating this. The heavy re-
duction IN loans. though largely accom-
plished by decreased deposits, is q dis
tinctIv better feature OF the situation
But II the market has improved in its
technical position its irregularity has not
been 10 the liking OF either the profess
sional traders or TO the public. Many
followers on margin on the upgrade
have taken alarm and quit. They have
tried to get IN again for profit, but the
weakness following strength, with occa-
sional spurts of temporary firmness has
not given opportunity for many profits
on the bull side and the majority of
the semi-profesionals and the public are
bull traders
Everybody was following Steel. And
II is a fact that the declines in .his
stock, either in the common or the
with the advances that have been
scored. All that has been said about the
business OF the Steel Corporation and
the independent steel companies is PROB
ably true The rebound In THE steel and
iron trade has been remarkable. The
needs OF the nation have increased
many fold Business activity. the long
period when railroads neglected ma1nte-
nance in order to help out earnings as
best they could. with the enforced bet
terrnents that must be taken care OF
now 10 enable the roads to handle bust
ness that waits their effort-the rush
OF building and. the rehabilitation or prof.
ecfs abandoned during the panic, all tend
toward giving the steel and iron trade
q great boom for months 20 come. The
stories told OF the activity of mills and
OF the earnings were true The rapid
advances tempted more followers and
good fortunes were maidstone not
Earnered in before the beginning Of the
slump from a45s, the high point There
are some stories OF pools and big inter-
ests selling out on each other. The
table of fluctuations and net changes
shows that the industrials were harder
hit than some OF the rails.
Steel Led Slump.
Steel naturally showed the first irreg-
ularity, the first real weakness for It
DALI furnished a big fraction OF the
markets business. FOR time there
was talk OF separating the Industrials
from the rails. that is the bulls talked
that way, but they couldn't do it.
The bears who have had but poor
picking for some time were greatly en-
c0uraEed by their success and pressed
for advantage more fiercely, ane with
have usually been due to covering Of
shorts and the market has not display
ed mitch latent strength at other times.
The crops in the West are large. Corn
is little below expectations, but wheat
is up 70. and a little better. while both
crops are large, The unfavorable fea-
ture In so far as our material pros
peritv is concerned is found in the short
cotton crop and the closure OF many
mills in the South and in New England.
as well--part time in some cases. Il
must be admitted that the prosperity
of the agricultural classes rs based 20 a.
greater or lesser extent on scarcity,
scarcity OF the necessities OF life. Spin
nnTS find the high cost OF raw ma
terial a detriment, while the Indications
are that values must 90 higher because
Of the short crop. Wheat prices are
high. and the exports OF breadstuffs
promise 10 suffer with those OF cotton.
This brings US 10 the point OF having
TO settle our borrowings abroad in some
other way than with merchandise and
breadstuffs. Our imports are also in
creasing rapidly.
Corporation Control.
Wall Street has had its ear to the
ground and the news that IL has gath
cred from the speeches OF the President
startled It. The corporation tax did noe
cause more than a shiver But corpor-
ate regulation. control after the man
ner Indicated by President Taft OF cap
ftalization, a brake on the right 10
finance. was another matter, moreover
Congress will meet In less than two
months and with the President sending
IN recommendations and members send
ing n their own bills. this Is likely 10
bother the bulls in their campaigns.
Money is tighter. but this Is expected
with big crops 10 move and the corn
and wheat crops are large, even though
the demand for the latter promises to
reduce our available surplus for export.
The monetary situation is not likely
20 cause much trouble unless bankers
care 70 use II as club to check and
advance or accelerate decline. There
are 800 600 600 in emergency currency
in Washington waiting for the call Of
necessity, but the banks viii NOT make
use OF their privileges in this respect
unless conditions should become very
much worse than they are now. The
minute the banks drew on the emer-
gencv fund, the bears would realize
that conditions favored them, and they
would hit the line.
Still Well Held.
The bulk Of the floating supply Of
stocks Is still held BY large interests.
AMI any material reaction VIII be con
tested more or less bitterly. And yet
the market has discounted almost
everything possible in the way OF bull
news and the chances would seem TO
favor a scslping market
Some fotatiOns are still on hit nOta-
ffons that have been delayed by the
gathering strength OF money. These
have not been permanently. postponed
and the market viii be made for their
execution IN due time.
Despite the cautionary signals business
conditions are sound, crops marketed
at high prices viii continue the pros
peritv with the return OF money to
This center the conditions will be more
favorable 10 a resumption OF the mp
ward movement.
Steel May Lead.
n is probable that Steel common will
arain resume It's leadership-the earn
fnZs. the dividend prospects and the
spleu6id condition OF the property all
warrant 1.-THE reaction OF a few points
ka-r-t L. rrn.IlL.l-L Ill Is .LLlL