The Washington herald., 1909-06-08
DECLlNEATTHECLOSE
Realizing Sales Take Prices
Down at Rapid Gait.
MARKET IS MUCH IMPROVED
Decrease In Values Regarded as
Necessary, rs the Longer II Ad-
vances without seasOnabIe Reac-
tiOn the Moro Dangerous and Top
heavy Ii BecOmes-CrOp Outlook.

New York, June 7.-Although there
were no unfavorable developments In the
news. and. indeed. hardly any develop
nents al all. the stock market to-day. al
though maintaining itself most OF the
time with steadiness and displaying
strength early in the day in various par
ticular stocks, was. in the main. through
out under the influence Of realizing sales.
and closed with a rather rapid downward
movement in progress
There were those who asserted that
anxiety as to the nature OF the govern
ment's crop report due tomorrow was
the cause OF the decline. Others said
that the showings OF decreased reserves
made on Saturday In the reports OF the
banks and trust companies. taken In con-
nection with a similar exhibit in London
and a closer working OF rates there. was
responsible for the weakness.
The truth Is, Of course, that the alb
sorbing power OF the market has been
pretty severely tested recently. and that
the market was undoubtedly showing In
considerable degree the pressure OF that
weight OF stock 20 which Il mas been
subjected
EMeGNlNGs
Liquidation OF the kind described was
unquestionably more in evidence to-day
than it was either on Saturday or Friday.
or. more correctly speaking. the effect Of
the liquidation was more apparent.
IN the best quarters to-day the techni-
cal condition OF the market was regarded
as having been improved by the selling
Of stocks that has taken place.
A security market cannot advance with
out occasional recessions. and the longer
it advances without seasonable reaction
the more dangerous and top-heavy It be-
comes. As regards its probable course after
one Of these reactions. every student OF the
situation must judge for himself II ths
advance in the market has been OF a
purely speculative sort and IN no way
based. or based in but little degree. upon
considerations OF intrinsic merit. its fall.
when the sine for a fall comes. viii be
serious r. on the other hand, the
rise has been caused by a well-grounded
anticipation OF developments later on.
and the market in reality is only suffer
Ing from a temporary overdiscounting
of these favorable prospects, the reaction
Will be kept within relatively narrow
limits.
Crop Outlook PrOmiHing-
This much should perhaps be remem-
bered by spectators for the rise IN stocks
at the present juncture that the real
basis Of this rise has been thus far the
confident belief that the outcome OF the
agricultural season this year viii be OF
a happy sort. especially as concerns the
country's corn crop. our most valuable
article Of staple production.
Yet bright as IS every present outlook
for a bumper crop Of corn. the crop is as
yet barely more than planted. II may very
well be that some Of the larger hnanciers
have arrived at the opinion that they
would Ike to see a further unfolding Of
conditions regarding the crops before
they commit themselves further In stock
market operations for the advance
The irregularity OF the market in the
first half Of the day was illustrated in
the fact that while the Union Pacific,
United States Steel common. and one or
two others Of the most prominent stocks
We're plainly inclined 10 heaviness. there
was at different intervals sharp uprushes
in the Reading. Atchison. Rock Island.
Erie, Brooklyn Rapid Transit. Louisville
and Nashville. Wabash. and numerous
other shares.
All these last named stocks declined
with the general market. and in about
the same degree, when the prevailing
weakness asserted itself toward the end
Of the day.