Omaha daily bee., 1909-06-28
STOCK MARKET SHAKEN UP
Break in Prices Followed by Rally to
Higher Level.
VIOLENT REACTION IN COPPER
Disclosure of stock Increase In
Europe Assigned rs the Cause
Bank Reserve H. Low
Now.

NEW YORK, June 27.-The stock market
last week got an effective shaking up, in
the course OF which the weakness took on
an appearance OF Generalization The
secondary effect Of this break in prices
was shown later in the week, in the effec-
tive rally to a level rather above that at
which the preceding week ended.
The whole episode represented rather a
clearing up Of speculative accounts than
the effect Of any potent factor in the
course Of events affecting values. The
result, nevertheless. was to cause the
unsettlement Of speculative sentiment
usual in such conditions, and which finds
expression in the varying views amongst
professional operators as to the healthful-
ness Of it's reaction. The weak technical
position into which the market had fallen
undoubtedly was affected largely by the
great profits which had accrued and which
prompted their realization by sales.
The distribution Of speculative holdings
into weak hands had been affected in that
way. Meantime many Of the powerful
forces in the market had retired for q
period for opportunity to enjoy summer
vacations and foreign travel Such an in
fluence, while apart from the purely finan-
olal considerations governing a market, Is
to be reckoned with in estimating It's ac-
ton. 1t may be taken as a presage OF q
coming period OF abstention from markei
operations by such forces which would
promise dullness and quiet.
The withdrawal OF such a force is a pre-
sumption Of some dissatisfaction, promise
for future advantage, as well as a desire
to realize benefits already accrued. Fears
for the stability Of prices at the high Level
to which they had been pushed was an
element In this dissatisfaction.
Reaction In Copper.
A violent reaction in price of refined
copper caused by the disclosure Of tbs
heavy increase Of stocks in Europe, was
one Illustration of the doubt that existed
A Discrepancy was pointed out betweer
the reports Of large orders from railroads
for new freight cars and the increase in
the already large total of freight cars In
the country lying idle. On the side Of ,ht
money situation, the persistent ease Of in.
terest rates in face of every requirement
and demand forms a factor calculated tc
sustain the stock speculation. The July
settlements will be heavy and the existing
surplus reserve of the New York banks IL
not large. Yet call loan rates hang at
per cent or below and rates for time loans
rave receded during the week. Large
sums, estimated at as high as 500, 000, 900
nave been borrowed abroad and the active
demand for exchange in connection with
the London stock market settlements show
that large amounts of stock are held In
London for New York account. Gold went
out during the week both to South Amer
lea and Europe. There are large new is-
sues of securities In prospect in connection
with necessary financing of railroad and
other corporations.
Enec of Taft Program.
Some repressive effect on the speculation
came from Washington. owing to the pro-
posed tax on net earnings Of corporations
and the Incidental effects to follow from
the aw.
The extent OF the rebounds in prices OF
stocks and the effect produced by the cir
culation Of many revived reports of prof.
ects intended by several railroad companies
show the vitality remaining in the specula.
ton and keep the market two-sided and ir.
regular from day to day.