New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-12
FINANCIAL MARKETS
STOCK LIQUIDATION.
Losses from I 1-9 to 3 1-9 Points an
ActiUe Shares-MOney Rates Up
Sterling Exchange Strong.

After an early exhibition of moderate strength
the stock market declined in the last three
hours of business under the influence of bear
pressure and commission house liquidation, the
selling movement being based upon the absence
of aggressive buying. further strength in money
rates at home and abroad and to some extent
upon the monthly report of the Copper Pro-
ducers' Association. showing material In
crease in the amount Of the metal on hand. The
general course of speculation reflected the grow
ing attention that is being paid TO the money
market by Wall Street and the commendable
disposition on the part Of the substantial bank
ing interests to discourage the accumulation of
new lines Of long stock on borrowed money at
a time when the industries Of the country are
making active demands upon available surplus
capital In the leading issues maximum de-
clines from Y to ga points, with the chief
selling pressure in the Hartman shares, Anal
eamated Copper. American Smelling, New York
Central, Reading and United States Steel, the
last named going as low as $50. against a high
price Of 947s a week ago, the latter figure being
the best ever recorded for the stock Technical
market conditions have been strengthened by
the decline that has taken place in the last
week. and further liquidation will increase the
chances of a sustained upward movement when
monetary conditions become more favorable for
active bull operations in securities. Many stocks
sold yesterday appeared to be taken by strong
buyers, who simply absorbed offerings rather
than bid for them, but good part of the
buying represented covering by traders who
market especially in United States Steel. Read
ing and Union Pacific a slight rally developed
after delivery hour but the closing weak
with New York Central down ga, the selling of
this issue representing in great part the liquida-
ton of an extremely weak public following that
bought the stock on its recent advance in the
confident expectation of a much higher quota
ton Missouri, Kansas & Texas which was
bought by a prominent house was about the
only important strong feature. Loans were
Ia in, Il
of which was seen in the sale of first class
shares 10 protect other stocks which could not
readily be disposed of.
Bank statement figures for the last week
feet efforts on the part Of the Clearing House
institutions protect their reserves. and the
success obtained, though not shown by a note
worthy expansion in the actual surplus above
legal requirements. attests the ability of our
banks to handle a delicate situation and it
should suggest 10 stock market Spectators the
wisdom of going slowly in their bull operations
the current time of hardening money rates.
The position of money has not been changed by
the gain in reserves. as fundamental conditions
remain the same and working for hieh>r
quotations for loans, but the banks have been
able to reduce their loans upward of $50. 900 900
and have made il quite apparent that with an
actual reserve of only little more than ST.
900 900. operators in securities must look else
where for accommodation. Nearby out of town
banks are lending in the local market and
American finance bills are being discounted
abroad. The latter movement has been under
way for weeks. Local interests believe that
our loans abroad can be increased indefinitely
and that maturing bills will be freely renewed
but il should be borne in mind that home de-
mands for capital al foreign centres are in
crea sing. that open market discounts are rising
and that another advance has been made bv
the German Reichsbank with the proba bility of
a further increase in the Bank Of England's
rate before the end of the current week With
the advance IN the Imperial Bank OF Germany's
minimum rate of discount yesterday from 10
per cent the second change for the autumn
by that institution is recorded the highest level
since April 1908 Borrowers at this centre APP
pear confident that the current rise i'm money
throughout the world is merely a passing Incl
dent OF the day, but among the bankers who
have been watching the trend OF affairs the
opinion is held that the period of world wide
eaCe in money is over, and for months to como
general interest rates will rule well above the
low quotations that followed the panic OF 1907
The demand for capital for use in business is
growing al home and abroad. and IL our avail
able credit is to be used in the interest OF specu-
lation in stocks and commodities industrial ex-
panson will come 10 "a halt. Our debts in
Europe On speculative account are enormous
but some Wall Street traders believe that il
VIII be an easy matter to liquidate our obliga-
lions through the medium OF exports Of mer-
cnandise. Exports viii increase from the light
shipments Of recent months bat imports also
VIII grow, just as they have been doing in the
last half year. ana il is extremely doubtful II