New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-21
FINANCIAL MARKETS
STOCK PRICES RECOVER.
Morning Break FoUored By I'm
proremert- Gain Cash.

The nquidating movement that reached I'm
portart proportions in the closing dealings in
Thursdays market made further progress In
yesterdays operations. sales in enormous volume
being recorded on declines that ran from 70
3 points in the active list Union Pacific again
was the star performer. People who were ex-
treuely bullish the issue above 2l5 would
not touch IL at 2o+ yesterday. though at the
latter price and after the serious decline from
it's high Of 219. the stock looked Ike fair pur-
chase for turn, and a far more attractive in
vestrnent proposition than IL was al the begin
ming OF the week. when the Street was cocksure
that it's price would go 10 80 before the de-
velopment OF an important reaction Prices be-
came weak soon after q strong opening, and
while genuine support was effective In bringing
about substantial rallies at times in the morn
ing and preventing speculative Generalization,
the tendency throughout the list was in the d.
rection OF lower levels until the last half hour OF
trading, when the general market developed
marked strength under the influence OF active
covering Of shorts and buying by interests who
believed that the decline had been temporarily
overdone. The Morgan stocks were prominent
IL the recovery. with United States Steel easily
the leader. Great Northern and Northern Pa
cihc were strong features. being helped by re
ports OF ideal harvesting weather in the territory
traversed by the two roads Union PACING,
v HIGH showed a maximum loss at its low point
OF more than. 3 points ended al a small net
gain and in the majority OF active shares final
quotations showed net improvement from the
last figures in Thursdays market. AT the
height Of the decline selling orders from margin
traders was made regardless OF prices. and in
the larger number OF Instances orders were
ecuted at levels that showed Losses for operators
who only few days ago had comfortable paper
profits. The speculation in United states Steel
common has been handled in mastery manner
in the recent days Of market weakness. and
active buying Of II for substantial interests was
reported yesterday for this very reason.
Substantial financial interests not only APP
proved OF the decline in the stock market in the
current week. but they aided IL Well, in the
best interests Of the general situation. Small
spectators who bought stocks at high prices
and have had their accounts wiped out
consequence doubtless will be genuinely dis
gusted with the part the powerful banking in
terests have taken in the slump in prices. but
ample warnings have been given every day for
the last month Of the danger OF operating in
stocks at high prices margins. and the trader
therefore who failed To profit by words Of ad
vice from conservative sources has himself alone
10 blame for his losses He will receive sym
pathy in Wall Street Losses in the current
decline however. have not been confined TO the
small public speculator, as some OF the big bull
pools and substantial individual traders have
suffered heavily in what TO them was an unex-
pecte1 break and wholly out Of line with their
calculations, despite the advance that already
had been recorded by the general market. They
were counting upon go better for Union Pa
cifc and corresponding advances in other promi-
upset their plans TO the accompaniment 81 Sc
financial disturbance in their bank
counts The shaking out process that has been
under way doubtless will the useful pur-
pose Of discouraging public participation in the
market m the immediate future. while IL will
afford actual investors opportunity for the
purchase OF attractive securities at reasonable
figures, including Union Pacific, which in the
neighborhood OF 300 would not be dear 10
per cent issue that has the prospect OF paying
more 10 its stockholders. In view of the out
look for higher money rates IL is fortunate that
the decline came at this time, and IL is quite
probable that in expectation Of higher rates for
funds In the autumn IN connection with legiti-
mate business requirements the more important
members OF the banking community exercised
their influence to prevent the continuance Of
a bull speculation that promised 10 run into a
serious bull riot.
According 10 the known movement OF money
IN the current week. the local banks have gained
a small amount OF cash on their various opera
tons. with interior receipts slightly in excess of
shipments. due tu-a moderately heavy volume of
currency from nearby and Eastern points Ship
ments TO the South were moderately large and
| an increasing demand from the West was re-
ported The factor contributing chiefly TO the
gain by the banks all transactions was the
receipt ~ new gold TO the amount OF 81 $50 900