New-York tribune., 1910-07-28
FINANCIAL MARKET
Foreign Houses Heavy Buyers of
American Securities.

Although d large amount of stock
came out on the advance in the early
dealings in yesterdays market the
larger part of the initial improvement
was maintained, while in the subsequent
operations the general course OF prices
was in the direction OF higher levels,
final quotations showing net gains Of
from TO i points among the prominent
issues. Bear traders prOfessed to See
nothing more than a passing rally in the
days movements. In view of the severe
drop of the preceding day the advance
was in line with logical market develop
ments. but there was little in the char
acter Of the trading that suggested the
beginning Of sustained bull specula-
ton at present That prices were at
tractive. however, to many buyers was
reflected in the accumulation by So
called bargain hunters and by the heavy
purchases by foreign houses. which
bought upward Of $1,000 shares on bal
ance. making total of more than 100
600 shares taken by Europe in the cur
rent week. Most stocks are worth buy
ing at prevailing quotations and on
every additional decline. No one knows
whether or not the bottom has been
reached. but il is not unlikely that, as
usually happens after a long period OF
liquidation, prices will be on the upward
course while many operators are still
waiting for new low levels.
The statement OF the United States
Steel Corporation was an effective .in-
fiuence upon sentiment yesterday, as the
showing was far better than had been
looked for Moreover, a number of opti-
mistic business forecasts were put out
by prominent men who q month ago
were not inclined TO talk, while It be
came known that certain powerful bank
ing interests had taken over a large
amount of speculative stock that had
been considered a serious menace to the
market, the two factors adding materi-
ally in promoting cheerfulness in the
Street Nevertheless, certain bear in
terests asserted that the stocks taken on
Tuesdays break in prices would be ped
died out on all advances, and that quota
tions would go lower before they could
enjoy important Improvement a bear
trader in one house announced his be-
lief that United States Steel common. IN
spite of the fact that the Corporation al
ready has earned more than the entire
years dividend on that issue. would go
below 30 before il crossed 20, and to
show his confidence in his conviction he
sold 200 shares Of the stock short.
Overconfdence on either side Of the
market generally leads to losses. A
large amount OF stock was bought
yesterday by small capitalists When
the time comes for real bull movement
stocks may be so scarce for covering
purposes that a bear panic will de-
velop. There was a near-buu panic in
the stock market on Tuesday.
Wall Street opinion is mixed over the
probable course Of stock market prices
in the immediate future, but in banking
quarters large purchases Of the best
securities have been made in the conf
dent expectation that eventually quota
tions viii rule far above prevailing low
levels. One Of the largest international
banking houses in the financial COM
munity was a heavy buyer in Tuesday
slump for its own account and for the
account OF foreign interests, while indl-
vidual members OF this firm and Of other
prominent houses also were credited
with extensive accumulation on the de-
cline. II is understood that certain
Rock Island interests have been heavy
sellers. and that the general liquidation
OF recent weeks has been by people who.
though classed among the financially
strong, simply have been unable TO carry
their overextended bull commitments
under the burden Of constantly declining
prices. especially as the banks have
shown no disposition to extend accom-
mediation TO help lame dogs over stiles
The banks are increasing their resources
al the expense Of spectators. The atu-
tude OF the banks. however, Is not un-
Usual or unwarranted. but spectators
who have been compelled TO suffer are
beginning TO make the customary COM
plants against the financial institutions.