New-York tribune., 1909-09-01
FINANCIAL MARKETS
LIGHTER STOCK TR.fDING.
Price Reactions FolIosc Early Cams
Sterling Erchdnge LO5crr.

In the early trading stock market prices moved
ward a higher level under the influence OF
further buying by the professional element, while
in the afternoon the pressure OF realizing sales
and the apparent completion Of the covering
movement were responsible for material reac-
tions from the high levels OF the morning, dc
Clines in the leading issues before the close
amounting TO point more. There was no
public interest in the market and no indication
of activity on tho part Of the substantial in
terests TO work for higher quotations. The alb
sence Of buying operations from the latter source
naturally encouraged greater confidence among
traders who believed that, in spite Of declines
recently recorded, the market would sell lower
before aggressive bull speculation developed,
though there were signs OF willingness in the
bear camp 20 make extensive commitments on
the short side OF the account. Spectators who
could see nothing but the bull side Of the market
appeared confident that a new upward move
ment was about 20 start, notwithstanding the
fact that in the days transactions there was
absolutely no suggestion of an enthusiastic de-
mand for stocks at current prices. not even in
the so-called cheap priced group, in which there
is some room for further appreciation. Stocks
are in stronger hands than they were week
ago. This situation may preclude the posi-
hility Of a further material read1ustment Of
quotations 70 = lower level I'm tho Immediate
future. but it does not, however, Justify the
pectatiou that there is 10 be immediate up
ward course Of securities prices. As matter
of fact. II would not surprise tho best informed
observers in the Street il in the next few weeks
stock speculation should sink into a dull and
perfunctory affair. Morgan and Hartman in
terests have been heavy buyers on recent de-
clines, but the chances arc their operations have
been based on considerations Of the future rather
than upon any intention 10 make quick turns
At the present time. on the afternoon decline
the general market became more active. though
no great amount Of stock came out, except in
Union Pacific. Reading, American Smelling and
Southern Pacific. Excellent buying report
ed in Reading and United states Steel. The
buying Of Steel has been from the best sources
in the last two weeks, and at no time has the
issue suffered important decline. An in
creased dividend is suggested for October.
Though call money rates remain at the higher
level recently established. time funds firmer,
tho demand for the latter being supplied in great
part by foreign houses. who are putting out
ninety day accommodation in moderate volume
chiefly for the account Of Wall Street. Tho in
quiry for time money may foreshadow greater
activity in the stock market, and. in view Of
the probability Of extremely active with
drawal Of currency from this centre in the near
future, the preference for time loans IS not sur
prising, in the event OF disturbance in rates
for demand loans commission houses we'll sup
piled with long maturites at prevailing quota
tions VIII have difficulty in financing their
operations. even though there should be an act
ual stringency in the money market. That the
inquiry for funds is growing Is reflected in the
increased amount of commercial paper in the
market, in the movement Of domestic exchange
against New York and I'm the advance in loan
quotations at Chicago. call rates at the latter
point advancing yesterday from 4 to Az per
cent With money commanding a better price
at Western points than at New York, IL is not
difficult 10 understand why local banks are shin
ping currency to the interior. while in general
money market conditions IL Is not difficult 20
find reason for caution in making COM
mitments on the bull side of stock market spec
ulation at this particular time There is moth
ing in money market prospects that ENCOURAGES
the idea Of coming disturbance unless reckless
speculation again develops but every factor gov
efning the market. however. suggests a range
OF loan quotations in the autumn well in ad-
vance Of the level now ruling. If the stock
market runs into wild bull affair ttere will be
trouble. The conservative Wall Street interests
may be counted upon TO exercise their influence
against Big bull speculation at this i,Incture
and ii IS to be hoped that their efforts will sue
coed. Tor otherwise the chances of steady i'm
prOvenent IN prices on legitimate movement
following the cessation of the fall demand for
funds in connection with the financing of the
crops and autumn trade requirements win he
come extremely unpromislng Fortunately the
public at the moment shows desire TO come
into the market Sterling exchange was weak
yesterday under Increased Offering OF commodity
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