Omaha daily bee., 1909-06-05
NEW YORK STOCKS AND BONDS
Powerful Influences Dominate Specu-
lation Throughout Session.
GROUP AFTER GROUP EXPLOITED
Market f. strong, but Constant DIges-
tiOn of PROFITS Keeps the
Price Movement Ir-
regular.

NEW YORK, June 4~-Powerful forces
obviously we're at work in the speculation
in stocks today, the volume Of the trans
actions and the size of the individual
operations showing the uses of the most
abundant resources such as are COM
manded only by speculative capital of
the first magnitude. The example yester-
day Of what could be done In the case Of
Southern Pacific brought the speculative
enen to Wall street in troops today.
Its first efforts were directed TO the stocks
most directly interested by the Southern
Pacific movement yesterday, but IT ranged
up and down the list at Will during the
day, exploiting first one stock or group
OF stocks and then another, using pur-
chases OF fresh selections TO cover heavy
realizing sales in others. 1t was signifi-
cant OF enthusiasm Of the speculative sem
timent that no depressing effect was pro-
duced by the weak tone Of United States
Steel, which sold below yesterdays. clos
ing price throughout the session. Not
since May II has II happened before the
United States Steel failed to sell higher
every day than on the day before. This
continuous advance in United states Steel
has been the backbone Of the whole
market during that period. Its reaction
today was even made a favorable argu-
ment for the advantage OF the general
market situation. That reaction was not
ascribed in the current opinions was the
stock exchange to a pressure to get out
Of the stock at a profit on the part Of
the long holders. but to the merCiful and,
1t was considered, politics purpose of the
~ llulCdlb WHICH mas Deel dCtuIlldldAlIlA
the stock for the Paris introduction to
allow the shorts to cover at the existing
levels and not to push the punishment of
the uncovered bears to the point that
would threaten financial damage that
might hurt the whole market. incidentally
there were rumors ahoat of a private
settlement effected over night Of a short
interest alleged to amount to 5000 shares
at q price considerably above any yet
touched by United States steel in the
market, This rumor was additionally in
teresting from the intim9tion that capt.
talists considered high authority in the
steel industry were involved in the abor-
tive bear campaign.
speculation, there were wide openings in
Southern Pacific, Union Pacific and At
Gibson. Besides the expected exchange Of
Southern Pacific preferred for common
stock there figured in the discussion a
supposed treaty of comfy among the rail
roads in that group The Northern
Pacific Union agreement, the Union Pa
cific influence in Atchison and the re-
ported inclusion of st. Paul on behalf of
Its Pacific coast extension were pointed
out as confirmatory facts. This and the
Atchison bond issues were offered ~ ex-
securities. The new Atchison convertible
bonds, when issued, we're quoted in the
curb market at figures to make the stock
holders rights worth nearly one per cent.
Views of bankers on the volatile market
were rather c~autionary in character, but
did not extend apparently, to the point
" MAlilllblulilS IlOAlCS GltulAb LlOli 'l0
conduct Of the speculation. Prospects are
for a much smaller accession to the cash
holdings of the banks this week than last.
The gold exports and sub-treasury oper-
ations rave taken cash from the banks
and the inflow OF currency from the in
terror has been decidedly smaller. The
net result promises less than $2,000,0 900 ad-
dltion to reserves.
Bond flotations and the increased spec
ulative activity have involved expansion
OF loans. but foreign money market have
continued to place funds here. A sharp
rise in the London discount rate today
might not be disconnected with this pro-
cess. London Joined in the buying of
stocks here today, which helped to keep
down the exchange rate. The constant
digestion Of profits kept the movement of
prices irregular but the strong dominent
tone of the market was unchanged until
the end Of the day.
The great activity in the convertible
issues was the feature of the bond
market, The tone was strong. Total sales
par value 10, IA, 900. U. S. bonds were UNI
changed on call.
lumber or sales ana leading quotations
on stocks were "a follows.