New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-18
FINANCIAL MARKETS
HEAVY DAY IN STOCKS.
L. II. Breaks and ReCOCerS-Cdnddd
Uithdrasrs Gold from Ne7o York.

Stock market movements showed great irreg-
ularity throughout the day. with the final changes
at net gains in the larger number of active is
sues After a brief period of strength In the
early operations the general list declined under
the influence of aggressive pressure from the
trading element and forced selling by commits
sion house interests who either were too ner-
to hold their position on the bull side in the
face OF rapidly declining prices else
unable to advance additional margin TO their
brokers. Maximum losses Of from 10 points
Were suffered by the active issues, with an even
heavier decline by Union Pacific. the weakness
Of which caused surprise in quarters where
the reckless character Of the recent speculation
IN the stock had been carefully observed. on
covering of shorts sharp upturn was reported
I'm the afternoon. and before the close the ten
dency was decidedly in the direction Of higher
levels Substantial interests bought stocks
the slump. and traders who had the courage
70 sell the market short on the opening bulge
secured attractive profits covering their con-
tracts At figures that represented a handsome
turn. Good buying was noted I'm New York
Central and the character Of the dealings in
the issue strengthened the idea in we'll informed
circles that the Hartman interests soon would
be the chief factors in the control OF the So
called Vanderbilt system in which the Wander
bilt family. according to the figures submitted
by the Interstate Commerce Commission last
year, held about s14.00O.000 OF stock the same
amount as that held IT that time by the Union
Pacific The stock OF the latter company sold
high as PISS. and then broke to 210&, end
ing at 2l4&, a net gain of q, while New York
Central lost points on the break and ended at
a net gain Of /. The midday decline wholly
in line with the operations Of a big bull mar
ket, and served the useful purpose of elmnat-
ing large amount OF weakly held stock that
reached on stop loss orders. especially i'm
Union Pacific, Reading and United States Steel
In the late afternoon the entire list became
extremely strong under the leadership of the
a FrNr aE.1
mon, the last named selling near it's high rec
ord price. The reported departure OF Mr. Har-
riman from Europe by steamer, sailing yester-
day FOR New York, appeared TO be the chief
bull argument
Borrowing abroad by local capitalists is re-
ported on a fairly large scale. and just as long
as money rates at this centre remain at a
hlgher level than quoted in Europe this market
VIII receive the benefit of foreign loan opera
lions. Finance bills TO a considerable amount
are now found In the Street, while purchases OF
American securities for London and Continental
account moderately heavy, "A reflection of
which is found in lower rates for sterling
change and the elimination of gold exports
Europe factor in the monetary situation
The International trade balance for the months
of June and July was against this country, and
current indications do not suggest much IL any
Improvement I'm this respect in the present
month. but bankers are counting upon al active
outward movement Of breadstuffs and cotton
i'm the autumn IL the needs of the money market
should become urgent, they doubtless WILL
owing 10 the probable heavy Withdrawals of
funds from New York in connection with the
financing OF the harvests and general trade re-
quirements. All signs point 10 remarkable
expansion in the countrys industries. And
demands upon the money market will be neces-
sarily large II the expectations of our business
interests fulfilled. vast amount of money
has been invested in the securities markets and
in temporary loans in recent months for the
account of people who could not fdd profitable
employment for their funds in ordinary chan
nels Of trade, and II is reasonable to suppose
the extensive rise In stocks a substantial really
Ing movement will Ice conducted Just as soon
as our Industrial activities call for additional
capital Local bank reserves are not large and
show falling off from this time a year ago of
s54,2sS.40O. The idea that speculation in stocks
which Is beginning TO move along in riotous
manner. viii be checked by higher rates for
loan accommodation is not entertained in circles
where the accumulation OF fortunes on specu-
lative commitments based on borrowed money
is hoped for, but In conservative financial
quarters the impression is growing that the
money market contains possibilities that NAV
develop trouble for people who are buying the
stocks that the rich men have for sale at fancy
figures Canada made fits first call of the sea
it's bank balances here yesterday with
drawing 900 gold coin.