New-York tribune., 1909-10-07
FINANCIAL MARKETS
STOCKS BREAK AGAIN.
Upzcard Increment at the Close
Record Sales of Steel Money
Rules at 5 Per Cent.

Further weakness developed in stock market
prices in the early operations yesterday the
downward movement becoming more pronounced
until delivery hour when under the influence
Of covering of shorts better tone was reported
throughout the list. with last quotations show
ing full reCOveries in some issues and about rs
many net gains as losses among the leading
shares. An easier tendency in the money mar
ket following the practical completion of the
days business in loans, and evidence Of some
support at the low points encouraged buying by
the trading element but the movement failed 70
attract important outside demand and did
not suggest 10 careful market followers the
proba bility OF a resumption Of bull activity At
once. The directors Of the Atchison placed the
common issue on a 6 per cent basis in the course
Of the day, and large amount OF stock inn
mediatelY came upon the market. while bear
pressure against the security was heavy enough
70 lower the price 10 a small extent. sales being
based on the old theory that stocks are good
sale on the publication Of good news, which in
the case of Atchison's dividend rate means
a return an investment in the issue at the
current level Of nearly per cent United States
Steel was dealt in TO the extent of 64S.950
shares on price movement that showed
opening from S924 TO So low of S7l2, high
9Oia, with the closing at S9is, net loss Of l.
The general character Of the heavy speculation
in this issue reflected manipulation for both
accounts and frightened selling by the smaller
operators who until Tuesdays demonstration
showing that the market had more than one
side. bought the stock on the confident belief
that the issue would move to 125 or better with
out reaction. The United States Steel shares
doubtless eventually viii sell at better prices
than any 50 far recorded unless there should be
an unset in the iron and steel industry, which
is now on a basis Of great prosperity, re-
dected in the record breaking pig iron output in
the month OF September. which represents an
actual demand for consumption. Erie again
& strong feature; also Central Leather. Call
money did not get above 512 per cent and closed
al per cent Time funds were hrmer and
sterling rates broke sharply.
There Is nothing extraordinary about the cur
rent strength IN the call money market. though
certain buu interests in the stock market who
have been proclaiming from the housetops for
weeks that high loan quotations could not de-
velop this autumn appear dumfoUnded at
wholly natural development common 70 TINS
period Of the year The Tribune frequently in
past weeks has pointed out the probab bity OF
advanced rates and the reasons therefor. and il
is hardly necessary 10 announce at this time
that the days Of cheap money are over for
months 10 come. unless a radical change takes
place in the industrial and financial position Of
the country. In the period of trade depression
following the panic enormous amount Of
money including the surplus cash Of interior
banks found employment in the call money
market and now that business expansion is un-
der way money is moving more actively into the
channels Of trade. ouJ-Of-town institutions are
recalling their funds invested in the East and
the local banks meeting these demands at
a time when their reserves are extremely low.
The supply OF loanable funds is diminishing
and loans against speculative commitments in
the stock market are being called with new
considered only ~ higher rates. which
should tend 70 discourage marginal transactions
in securities. At this time in 1908 money
not dear because there was little demand for
IT, owing to- the absence Of activity in trade and
speculation but in other years rates a rule
were stiff with the highest in october, 1907
exclusive Of the 100 per cent quotation in the
panic week at 20 per cent; in october, 1906,
per cent. and in October 1905, per cent. The
advance in money has had the effect Of weak
sning the sterling exchange market through the
Jffering of finance bills. and it is not impossible
hat foreign funds may be attracted 10 this
market Ia the form OF gold imports though "a
movement OF the metal this way cannot ef- !
f-ctcd at present upon trade account. which IS |
5till running against the United States.
Ia connection with the possibility of gold inn
ports IL is interesting 10 note that the editor of
The London Statiet." who Is now ia this roun-
ry, states that. IT should be- realized that the |
Bank of England has not an unlimited supply /
81 geld available for export. ana that il viii DE /
desirable for the United States 10 keep its re- /
lulrements within reasonable compass IN or |
ief that the international money markets may /
not be disturbed However not much difficulty /
'hould be experienced n obtaining L 900 900 ar |
: -'.e"',"eo from London should such amount be-
necessary II money advances 90 a rate at
,iacliNe 10 lenders IN Europe. some gold doubt
iesS "l4 come 10 New York but IL should be /