New-York tribune., 1910-01-12
FINANCIAL MARKET
CALL MONEY FIRM.
Heauy Liquidation and Bear
Pressure Mark Course of
Stock Trading.

Actual liquidation of stocks was an
important factor in carrying prices TO
lower levels in yesterdays operations.
Support on the decline was not aggres-
sive and attempts to rally the market
were met with active offerings, espe-
cially in the Hartman issues, Reading,
St Paul, Rock Island and United States
Steel, the last named being fairly we'll
bought in the neighborhood of SO. Stop
orders We're caught throughout the list.
traders taking advantage of the liqui-
dating tendency to depress stocks in
which selling orders were known to
exist under the market, as, for instance,
Rock Island, which suffered maximum
decline of 21a and a net loss of 15s, and
in some of the specialties, such as La
Clede Gas, which lost a point or more
between sales. The intrinsic worth OF
securities was not leSsened by the down.
ward movement, while at the low level of
the day the general market offered far
more attractive opportunities for specu-
lative and investment buying than it
did in the closing week Of 1909, when
prices We're pushed up in expectation of
heavy public buying in the first part of
The current month which so far has
failed to materialize. There appeared
10 be selling by substantial interests,
hut whether 1t was for distribution or
merely an operation calculated to in
duce an outside demand for securities
that might start an effective bull cam
paign, the character of the dealings did
not disclose.
Whatever the advocates of higher
prices may believe regarding the future
Of the market they cannot ignore the
fact that ever since the first of the year
bear leadership has been better than at
any time in recent months. The general
market has been topheavy for weeks.
and this technical situation. together
with persistent firmness in money, un-
certainty over the effect of probable
legislation seeking to give the govern
ment greater power over corporations
and doubts regarding the benefits TO be
secured as a consequence of the current
concentration of banking power, has
made successful bear operations a COM
paratively easy matter. Stock market
prices are still long way from a level
that would appeal to careful buyers. and
though declines from existing figures
would wipe out many operators who
have been carrying big accounts on rela-
lively small margins. the general COM
mission house business and the invest
ment outlook would be improved by a
substantial further lowering of quota
tions. \ rally, however, to-day would
not surprise careful observers. barring,
of course, some unexpected adverse de-
velopment. The Stock Exchange gov
orning committee is expected to make
public tonight its verdict on the recent
Rock Island scandal. and ii is TO be
hoped that it will be drastic enough to
make future abuse Of the Stock EX-
change machinery by reckless gamblers
impossible. No diplomatic reprimand TO
the offenders will preclude the possibil
ity of future disgraceful revels.
Efforts to bring about a strong clos
ing yesterday were unsuccessful. Bull
operations met with no response. and the
general market ended with a sagging
tendency from its own weight. Most in
dustrial stocks were weak, American
Locomotive and Westinghouse being
features, while General Electric was
something of an exception; also Ameri-
can Car and Foundry. The copper
stocks We're firm and the Interborough-
Metropolitan issues were strong. The
demand for call money was active
enough 10 keep the rate around 5ia per
cent. London discounts were easier, and
the contango on American stocks in the
settlement. which was concluded with
out disturbance. was q OF l per cent
under the rate a fortnight ago. at o4
per cent. Sterling exchange was a tritie
higher in the local market.
CNnOlTG Or kazpc IL AMQIGE