New-York tribune., 1909-04-03
FINANCIAL AFFAIRS
REALIZING IN, STOCKS.
Bull Leaders Withdra5c Support
Sterling Rates Higher.

Stock market values were weak in the greater
part of the day on heavy realizing sales and
sales made at a loss representing purchases by
commission house interests at Thursdays high
quotations The chief interests behind the
weeks bull movement withdrew their support,
doubtless in order to shake out undesirable
following and to strengthen technical conditions
through the establishment of a new short inter
est which will work TO the advantage OF bull
manipulators when they desire to renew opera
tions for the rise Efforts along bull lines may
be upset temporarily if the Supreme Court
should hand down a decision on Monday unia-
vorable to the coal carrying and producing roads
in the commodity clause case, and in the event
Of such a decision the little fellows who have
been going long stocks in recent days on
small margins doubtless will find that il Is an
easy matter lose money in buying stocks on
borrowed money in a market OF nigh values.
The volume of realizing sales yesterday IN
creased in the last half hour 10 large proper
tions and the general list closed at or near the
lowest points, with losses OF from IA to more
than Fer cent in the prominent shares. Read
ing and AmalEamated Copper sunerlng the
most Union Pacific lost is and Steel common
the same dealings in these two issues ana IN
Reading amounting to more than one-third OF
the total in all stocks. The eEtraYagant push
ing up process of the preceding days of the week
was reasonable argument for the weakness
throughout the FIVE hour session. out the street
looked for outside reasons, and found in reports
Of King Edwards health ana IN disappointment
because Mr.. Hartman failed to say something
in favor of booming stocks cause for the days
selling Such reasons may please the specuia-
tors fancy. but they do not represent the fac-
tors responsible for the decline There were
few strong features in the days operations
notably American Ice and the InteTborough-
Metropolitan shares which were low enough 10
make demonstration in them successful on
the announcement Of the entrance of Mr.. Ha"-
ley to the board. Mr.. Hawley has established
reputation as a rebuilder OF worn-out railway
properties and his interest in local traction al
fairs ought prove Of value
MANY commission houses assert that prices
will sell materially higher before they 60 lower
and that purchases at the prevailing %Vel are
warranted by the outlook in the country lhuus-
tries and by the in money rates; otheF
houses advise buying reactions only, while
etiIl others maintain that the market has
reached a dangerous level and that those who
have profits paper will do well to convert
them into cash. The suggestion TO take prohts
shows good judgment Prices may be mahlpu-
lated to a better level on the present specula-
tion. but higher quotations will most certainly
he made the means for active unloading
process by leading Wall Street interests with
the consequent usual collapse that Will sweep
avav marginal profits and margins as we'll 1t
Is quite probable that large amount OF quiet
Iio,lida ton already has been accomplished
some one is selling, but enthusiastic bulls who
have lust recovered their confidence as values
a,,,,arantly are scraping along the top buy
ing the fancy priced issues with reckless abah-
don that would be amusing if il did not involve
the proba bility of serious losses When Wall
street is filed with all sorts of tips rumors of
railway deals and encouraging literature from
bull sources. backed by scientif1c manipulation
Of quotations. the wise man lets the other fellow
have his stocks If there is such a demand at
advanced figures il is just well to supply that
demand as the stocks sold will be offered at
lower rrices at a subsequent period. TINS be
ing the reasoning of the men who always nave
ON hand a good supply OF securities bought at
the bottom to sell the way toward the top
That Southern Pacific would be placed on a
per cent basis in the immediate future was the
talk put out a few days ago TO encourage buying
of southern Pacific which is. excellent in
vestment security, but along comes Mr.. Harrl-
man. who says that the company wisely prefers
10 spend surplus funds after the per cent divi-
dend on tire property The Street is in the cock
sllre mood and any foolish report rurnor or
suggestion is converted into apparent fact.
Stocks are approaching the level where outright
purchases no longer attractive. There is
little buying OF this character in the current
market prices being maintained almost entirely
by speculative operations.
According 10 the known movement Of money
in the week. the local banks have lost a trihe
more than SG01000 on all operations. the gain on
receipts Of currency from the interior and
gold being offset by the loss the federal Treas
ury, which included the gold that sent
To Argentina in the current week Money
rates were ul~ianscd and sterling exchange
was stronger in spite of foreign buying OF our
securities the advance in exchange being ac-
centuated by the light volume of grain exports
in the week, which We're smaller than in anv
preceding week ssnce the first part of October