New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-29
FINANCIAL MARKETS
T.. p. BREAKS FIVE POINTS.
General Last RecoCers in Part Be
fore the CIose-Bank Reserves
LOIcer.
IOTrer.

Heavy selling pressure at the opening or the
stock market, representing IN great part an ag-
gressive raid by professional operators. was Ell
fective in carrying prices from i TO points
under the closing Of the preceding day before
the end of the first hour. the chief weakness be-
ing recorded in Union Pacific and other Harri-
man shares. In the course of the decline further
selling was reported for the account or COM
mission house interests whose margins had De-
come impaired as a consequence OF the weeks
downward movement. but with the exhaustion
OF this liquidation, which was coincident with
the appearance Of support from prominent n
nancial sources. prices began 70 retrace their
steps under the influence of an active covering
Of shorts. and while final quotations showed
substantial net losses one-haf or more Of the
early decline was recovered The fall in Union
Pacific was rapid and was aggravated by re-
ports OF dissension in Union Pacific circles anu
by the conflicting advices from Arden. but so
far as could be learned I'm trustworthy circles
the runnors OF disagreement in high quarters
were not based on facts though spectators for
the decline made much of them. Southern Pa
ciic declined with Union Pacific, but not In the
same serious way, for the good reason that the
technical position OF the stock was far stronger
than that Of Union Pacific. in which the most
dangerous sort of speculation recently has been
under way, including the pyramiding OF accounts
by margin traders who two weeks ago refused
TO take their profits and a result are now be-
ing closed out as a rule at extensive losses.
The general market showed some resistance TO
the fall in the Hartman stocks. and in conserv-
alive circles the opinion was held that In the
event Of the worst kind Of news from Arden the
larger number OF securities would not long re-
main under the influence OF the speculation In
the Union Pacific shares. United States Steel
was well bought, and the support in this issue
and in other securities in which Morgan brokers
operated induced the belief that a large amount
Of stock being taken on all declines by the
chief banking power I'm the Street. Union Pa
.gfi cold 1oIy al
a net loss of 2ls. while in the general list last
changes did not exceed those Of an ordinary de-
cline. In spite Of the decline that has taken
place In stocks In the last week the market does
not look safe for the margin trader. Actual
purchases on further weakness ought eventu-
ally TO prove profitable.
Bank statement figures did not show, as eK-
pected. a reduction In loans. In the average
hibit there was an increase in this item of ST.,
40l, 500 and in the actual figures as of Friday
night an increase OF 81 65l 600, while cash hold
ings decreased in the average statement q little
more than SO 00O, 600 and in the actual figures
s177l10O. As a result of all changes the
serve above legal requirements decreased 81,
369.575, 10 sls,359, 575 which compares with $685..
35s.575 a year ago and ss,75e.575 in 1907. The
trust companies showed a large expansion in
loans and a gain in cash. 1t is quite probable
that the liquidation OF loans against sales OF
speculatively held stocks was offset by the loan
operation in connection with the financing of the
buying on tne sharp ana AT times panicky break
IN securities prices, inasmuch the sales of
stocks were perforce accompanied by an equal
volume OF buying for which banking accommo-
dalton had TO be secured Though the banks are
by no means in a weak position. reserves are
low enough to suggest higher rates for money
on the appearance OF an active demand for cur
rency from the interior. development that may
be expected at no remote period, despite the
fact that the seasonable rumors that the in
terror viii be able TO finance its needs without
withdrawing its balances from New York have
appeared on schedule time. From all indica-
tions the interior will require extensive assist
ance from this centre.