New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-27
FINANCIAL MARKETS
SETERE BREAK IN STOCKS.
Union Pacific Losses ~ Points
Money Rates Tnchaug6d.

Wall Streets punctured boom suffered further
material injury Yesterday. but the general posi-
ton Of speculation was substantially strength
ened as a consequence OF the extensive forced
liquidation. which carried prices down from to
: points The chief buying on the decline came
from the shorts and from interests who were
willing 70 take stocks az good sized concessions
IN the expectation OF making quick and profit
able turn a rally that was considered due but
al no time was there any indication OF aggres-
slve support or d disposition the part OF lead
ing banking houses 10 encourage trading on the
iheory Of an immediate resumption Of the bull
movement There was n plethora OF ruulors and
silly stories advanced as reasons for the heavy
selling and severe declines, but the general
course az the market again was based entirely
on the weakened technical position Of specula-
ton, advantage Of which was taken hv large
operators 10 depress prices To the limit An
absurd story alleging a Wall Street conspiracy
against Mr. Hartman. and reading little worse
than dime novel chapter in which the villain
Is foiled and virtue receives its own reward
added 10 the days bunch Of trash that was ad-
Nanced as an argument for lower prices but no
one who knew anything about the recent course
NJ speculation sought in idle gossip reason for
the break i'm prices In the course OF the decline
LnlGn racine got back TO per cent invest
ment basis, and was well bought AZ that level
by persons who take stocks for cash though
this buying was not heavy enough to affect the
pllce "f the issue, its only Improvement from
its low points being due to heavy covering Of
general market showed greater power of re-
slstance than noted AT any time in the last two
Gays, and some Of the best informed traders I'm
uie street expressed an opinion that whatever
might occur later on a substantial rally was in
order Union Pacific closed at its poorest price
of The day, while the rest Of the list AS a rul.
made similar record after a brief period Of
seihi-sfensth Supporting orders given i'm tho
DAY were not large enough to bring about am
important change IN the tendency of prices or
10 reassure the frightened speculative boIders
VINO We're throwing over stocks without any act
udi conception as TO what the weakness repre-
scented Money rates were unchanged
IN tho last eighteen months the loans 81 tho
Clearing House banks and the trust commands
have Increased upward of 5000 900 600. DESPITE
me fact that In that time the mercantile demand
lor accommodation has been light as conse-
quence of depressed business conditions and an
unwilngness on the part Of capital To move into
new ventures For this great exhaustion one
must look 10 tho securities markets for expla-
hauolL The banks and trust companies not only
nave been liberal lenders Of funds for the fur
therance Of operations in stocks but they also
have been heavy buyers on their own account
their purchases of investments being carried i'm
the loan item. The financial institutions Of this
city and in other parts Of the country were ac-
tive buyers Of first class securities at the low
levels established after the panic of 1907 when
boarded funds returned 10 circulation and as a
result Of the rise in prices their profits were
heaNy ana frequently converted into cash, the
proceeds being reinvested in other securities
that promised 10 do equally well and upon
which in the last few weeks handsome turns
have been made. High quotations recently pre-
Naing and the gradual hardening of money
rates with indications pointing TO an active de-
mand for currency from the interior, resulted in
a considerable amount Of liquidation by financial
concerns, their selling removing a strong factor
IN the bull campaign, the operation involved
the passing Of stocks from investment to specu-
latlve account, and a weak speculative account
at that The loan item OF the banks has not
reflected this selling 10 any extent, owing to the
tact that the movement has been Offset by new
borrowing by houses that have been carving
large amounts Of stocks margins but the
severe liquidation Of the current week should be
shown 10 some extent in a reduction in hank
and trust company loans in to-morrow's state
ment
This weeks liquidation of speculative ac
counts and the consequent decline in prices has
strengthened the position of the stock and
money markets, and though extensive losses
have been suffered, the general situation has
been helped by the halt forced upon reckless
speculation There Is nothing in the present
condition of affairs governing the intrinsic worth
OF securities that warrants extended selling
movement Every factor is bulsh. and after
speculative liquidation has run its course and
quotations have been readjusted TO a more at
tractiVe buying level prices doubtless again viii
move IN the direction OF a higher range espe-
| cially Il there is no disturbance in the money
market and industrial activities continue 10 ex-
! pand.