New-York tribune., 1909-06-21
FINANCIAL MARKETS
STOCKS At LOWER LEVEL.
Nang Weak accounts Liquidated as
Consequence of Natural Reaction
Money EdSy.

hut was due to an overextended bull account
which could not stand the pressure of aggressive
professional operations for lower prices and
liouidating sales by actual holders who took ad-
vantage of the high levels reached in Mondays
operations TO realize handsome profits in the
confident expectation of buying their stocks
back at more attractive figures The market
was honevcombed with weak accounts and the
prouinent Wall Street interests made no at
tempt to support prices the result of which was
a sharp decline on three days OF the week. with
the closing up from the lowest on active cover
ing Of shorts, the downward movement on
Thursday carrying values to a level from to s
nojuts below the high record of the year. For
the first time in many weeks the bear element
found II an easy matter to bring out stock its
efforts being materially helped by the sales on
stop orders and by the frightened attitude of the
weak marginal operators, who apparently
thought the bottom about to drop out Of
the market, though in the preceding week the
latter class of traders was quite certain that
the advance would run on indefinitely without a
substantial setback. Speculative conditions
week ago suggested the probability Of a sharp
setback in prices. and it required only the de-
velopment of some supposedly adverse factor
to marshall the forces for an active attack
as instanced in the transactions following the
report that the Paris Bourse had turned down
the application for the listing Of the United
States Steel common stock in that market IT
is a matter of no consequence TO the investment
holders Of the United States Steel Corporation
whether not the common stock is dealt In at
Paris. As however the recent understanding
that the stock would be favoraby received at the
French capital had been used as strong spec
ulative bull argument on the steel shares 1t was
only natural that the failure Of the negotiations
or. as it is asserted in some circles the delay
in securing consent from the French authorities
who have something to say regarding the listing
Of securities on the Bourse, should be employed
as a club TO hammer quotations at time When
the market was ready for such an operation
In addition to the so-called Paris steel situa- /
ton other factors came up in the week that
from the Wall Street point OF view were attrac- !
tive arguments for lower prices The Presi- |
dents message recommending a tax OF per
cent on the net earnings of corporations, the |
imposition of which would strengthen the gov |
ernments power TO investigate the anairs OF
railway and industrial companies, appealed TO |
traders for the decline, while the report or the
Hughes investigating committee contained some |
features that were adversely construed by the |
bear element, though there was nothing in the |
recommendations of the committee 10 which all |
honest brokers could not subscribe. Further
more. the passing campaign for lower quotations
was helped by the reported firing Of a Russian |
war vessel upon an English merchant ship. |
traders finding in this development for the mo- |
ment at least. adequate reason for the prediction
of serious international complications. In trade
conditions in the position Of the growing crops !
and in the money market situation nothing OF |
an unfavorable character could be found. Money |
was easy and further progress was reported III |
the movement OF our INDUSTRIES LoNalh d ii1A
NAL basis activity; reports from the agricult-
ural section of the country were most promis-
ing iron and steel centres reflected in their
onerations an increased demand from consum-
ers. including heavier orders from the railroads.
and the copper market, though showing d ue-
cline in prices as a consequence Of spectators
transactions encouraged the expectation of a
gradually growing inquiry for the metal for
trade requirements Stocks declined at time
when all conditions outside of those gov
erning the actual value OF securities were in
favor of such movement. And The people who
had been buying on inadequate margins on the
theory that cheaper prices were out of the ques-
ton as usual lost their money. There appears
no good reason for the belief that quotations
will seek a permanently lower level; indeed,
after the shaking out process Of last week II Is
not improbable that further advances will be
recorded, especially as the technical position Of
the market has been strengthened by the elm
ination of many weak accounts and an increase
in the short interest Of substantial proportions.
Liquidation in stocks released a large sum Of !
money that served to maintain rates at cheap
figures while in addition a moderately heavy
amount Of foreign money was offered here
through the medium of finance bills. the latter,
however, failing 10 affect the market for sterling
exchange, which was strong under the infiu-
ence of an active inquiry for remittance and
sales Of American securities for European &C
count More than 100000 shares were sold here |
by foreign houses, large proportion of the |
opera tions being made up Of United States Steel !
common, which in the preceding two weeks had /
been actively bought by London, where a con-
siderable amount had been carried for New
York account, and upon which loans were called |
in the weak. In the London and Paris markets
speculative liquidation also reported. the !
movement representing conditions similar to |
those that prevailed on the local exchange. The |
strength Of sterling here and the somewhat lover
quotation for the Paris cheque on London en-
couraged the idea in some circles that gold again
would go from New York TO the French capital
while further ngagements actually were made
for South America for British account. In the
last two weeks in June, in 1908, gold 10 the |
amount of S3.S50000 sent TO Europe. and in
the same time in 1907 shipments were $13,400, |
900, that resumption of the outward move
lnent of the metal which checked several |
weeks ago by the advance in Paris exchange and |
easier discounts abroad, would not be
usual development for this period of the year.
Money doubtless will rule at firmer level |
around the end of the current fiscal year, but |
nothing in the nature of high quotations for |
funds is expected until later in the summer,
when preparations will begin for the financing |
OF the harvests.
Though exports of general merchandise, in |
Guiding grain and cotton. too small to sat
isfy the requirements of the foreign exchange !
market it is encouraging to note that in the last
month net shipments Of all products from the |
United States showed a gain the corre-
spending time in 1908. the increase amounting |
in value 10 S9,746,32s, against, however. an ex-
pansion in imports of $32013,275. Notwith- |
standing the heavy increase in imports, there |
was excess Of EXPORTS of $1,000, ,S03 comparing
with excess in April of 81. .99O151. In the /
eleven months of the fiscal year imports have |
increased SS5,O15.599, while in the same period (
exports have declined $199,77S623, the excess of |
exports since July l amounting to s35S,374, $50, |
against an excess in the preceding year of |
$643, POP. a loss Of $2S4,794222. It is not |