The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-08-14
WALL STREET NOTES.

A mar who is In touch with some of
the larger spectators in the Street said
on Friday, when the market was at
the lowest level for h day, that in his
Judgment the reaction was due to a
considerable extent to the selling by
| operators who were heavily short of the
stocks which were having the biggest
advance and moderately long of others
which they had been compelled to sell
in order to protect their short commit
rnentS. He said also that according to
his Judgment and information, certain
big spectators havesf Within the last
two OF three, weeks made heavier conf
mitments on the short side than the
Street realized. while 200 had been pre-
dicted for some time for Union Pacific
by inside interests. Spectators had
no idea that the stock would sell as
much above that figure as it did on
Friday, and consequently in the neigh
borhood OF 200 they were strongly
tempted to take the short side.
The weeks speculation carried prices
of stocks to the highest level of the
year and to within a few points of the
highest average on record. Some hest
tation and suspicion was manifested
by the professional element from time
to time through fear that the culmina-
ton of the movement was at hand. The
hardening Of the money market in re-
sppnsc to the interior demand for crop
moving purposes added to the cautious
spirit Of the speculation. Professional
attempts to bring about a reaction met
with successive defeats. The govern
ment crop report on grains, the Copper
Producers report for July, the bril-
liant steel trade prospects and rumors
of important financial developments in
particular railroads helped on the adj
vance in prices.
Those who go into the deep, dark,
fundamental influences in. speculation
and investment and who pay more at
tention to economies than to tips, have
been worrying about the bond market.
The suggestion has been made, COM
ing from this source. that Z reaction in
bonds in view of conditions is newt
able.
Henry, CIews gives. these optimistic
views. today.
Conditions in Wall Street are alto
gether extraordinary. On every hand
there are signs of reeuperation, and
business is rapidly recovering ground
lost after the panic. Improvement in
industry and in trade is now being
followed by a good harvest, and the
nations cup of good fortune appears
to be filled to the brinle This does. not
mean that we have resained the ac-
tiyity and profits of the boom year.
they are still remote; but it does mean
that a very substantial and wholesome
recovery has already taken place which
promises to continue for some time to
come.
The money market shows a f1rmer
tendency for both call and time rates.
Much will depend upon our export trade
and the international movement of Sc
curities. Money Is still very abundant
n there is no immediate prospect of
any, particular. scarcity or stringency.
Some question has been raised as to
the status Of Union Pacific preferred
and what benefits may accrue to it and
to the holders thereof in the event of
the segregation plan which has been
talked OF being put into effect. Mean
while the stockholders who have moth
ing but the common stock appear to
feel that they will be the sole and ex-
elusive .beneflciaries. ..