New-York tribune., 1910-10-05
BANK STOCKS ON STOCK ExC
FINANCIAL MARKET
Bull Manipulation Fails to At
tract Demand for Stocks.

In the early dealings in yesterdays
stock market prices moved in the direc-
tion of higher levels on fair volume of
business. but in the larger part Of the
five hours Of trading the general ten
dency of quotations did not add strength
to the idea that developed in some quar-
ters on Monday that an aggressive bull
movement was under way. Perhaps
overnight consideration of the monetarf
situation and the unwiIlingness Of con-
servative observers TO indorse active
speculation for the rise at this time were
effective in modifying the estimates Of
enthusiastic operators who interpreted
the manipulation of the preceding day
as the forerunner Of an immediate ex-
tended rise in stock market values Ihe
advance on Monday failed TO bring in
public buying orders. Moreover. selling
pressure was not offset by substantial
support. while on the decline there was
no eagerness 10 buy stocks in any part
OF the market. Sales, however, were
not heavy enough 10 bring about impor-
tant losses. and final prices. as a conse-
quence of covering of shorts in the late
afternoon. showed net gains in the more
prominent issues. while on light opera
tions some of the so-called specialties.
as. for instance Hooking Valley and
General Electric. presented marked I'M
movement. on transactions of 400
shares Hooking Valley advanced 10
points An easing in call money, due to
the absence of demand and recession
in cotton prices after early strength
were factors that encouraged buying by
the shorts. Chesapeake & Ohio was
among the few consistently strong feat
ures The final advance was not accom-
panled by an increase in the demand.
nor was there anything in the character
of the business that suggested other
than professional trading. Sterling eX-
change was firm. with indications point
ing to higher rates.
The advance in Stock Exchange prices
or Monday and in the early and late
trading yesterday brought out stock
from sources where il is believed that
on all strong spots stocks should be
liouidated, owing to the indications of
higher rates for money and cheaper quo
tations for securities before sustained
hull movement can be brought about.
While the larger commission houses as
q rule are well supplied with time funds,
any widespread speculative demand for
stocks will impose a burden on the
hanks that will intensity the upward
tendency that is developing in the money
market. and in view of various outside
conditions that have "a bearing on the
monetary situation at this particular
period traders who have in mind the
purchase of securities on borrowed funds
at prevailing price levels will do well to
restrain their enthusiasm until all dan
ger of a money squeeze has been elimi-
mated Fundamental conditions do not
warrant uneasiness over the future Of
money and business, but immediate gov
erning factors suggest unusual caution
in commitments on the long side of the
stock market especially as quotations
in recent weeks have enjoyed substan-
tial Improvement Since last Friday the
local banks have lost more than S2,otp.-
600 on their operations with the Sub
Treasury. but il is not likely that their
loss in cash holdings in the current week
on all accounts will be anywhere near
the enormous total reduction recorded in
last Saturdays Clearing House state