The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-10-30

affair, as the result of recent manipu-
latiOn, was clearly indicated by the
irregular movements of the week.
Prices reacted quite sharply, recov-
cred with even greater vigor, and
then gave indications Of relapse into
a dullneSs and uncertainty. While
without question the recent active up
bidding of prices has aroused public
interest TO some extent, and is re-
spOnsible for some slight increase in
outside buying. the market of the
week lost none Of its professional
characteristics. Brokers who have
been weaned over to the bull side
insist that the present is a controlled
market" or in other words that IL f.
still within the grasp Of the forces
which influenced the recovery. and is
likely to remain there, despite oCca-
siOnal reactions.
Without accepting this view Of the
situation in its entirety. there are
quite a number Of things which go
toward confirming the theory Of the
brokers For instance. although there
has been a very considerable distribu-
ton Of stock. on the Upturn HQuida-
ton has not been permitted 70 gain
Roadway. and the selling movement
an active upbidding of some one or
other OF the market leaders, with the
preference given to United States
Steel On each occasion also when call
money has advanced a supply OF funds
has suddenly appeared IN the market,
and this has been Offered and loaned
in such a manner as leads 10 the con-
cIusion that The lenders We're not anx-
iOus to secure high rates. 1t fact. call
money was offered dowa on several
occasions
The Speculative Program.
Aside from this there has been some
very clever wolk between the New York
and London market, which resulted in
bringing London into the New York
market as a buyer Of American stocks,
at a time when the carrying charges for
our securities in London are a. the
very high rate for that market Of 51k
10 6ls per cent Taking note OF these
features and several others, il IS per
haps not strange that many brokers as
SeTt that this is a controlled market"
and despite the reaction Of the week the
belief prevails in very well informed
circles that every reasonable effort 7gin
be made 10 hold the advances already
attained, and to work for a SIN higher
level OF prices later on. either directly
after the elections. or # the money
market has not cleared up by that time,
as soon as it gives signs OF cefniJe i'm
prUVCmenT.
There is no way OF ascerta IniuE,
whether a stock market program, suCn
as the above has been arranged, but
speculative Wall Street inclined 10 mat
r4H
on matters Of the kind becomes fixed
there is no way Of shaking t. CCndi-
tons always control a stock market IN
the last analysis regardless Of any and
all efforts Of the pools and cliques and
maplpulatOrS 10 the contrary. The good
points and the bad points OF the present
situation, have been set form so fire.
quently that IL seems unnecessary 10
refer 10 them again, but - must bc ap-
parent 10 everyone, that a speculative
campaign, even one as well predictted
as the present on abundant crops, as
surfing a good volume Of general tusi-
ness, and relatively low stock prCes,
cannot ignore such things, as the ln1us-
trial trust cases in the Supreme Court,
the unsettled railway rate situation, and
the money market.
Making London Buy.
Reference has been made TO the
clever maneuvering between New
York and London. This was a marked
feature in the closing days OF the
week, and nothing which has occurred
since the present movement started
better illustrates the resourcefuluess
of the manipulative party than the
manner in which London was brought
into the New York market as buyer.
London turned seller Of American
stocks on the upturn in prices. in
creasing her sales when the Bank Of
England advanced its discount rate TO
5 per cent, ana continuing the iiquida-
ton on the demOralizing break in
cOnsols. II was the extensive English
ana foreign selling which Influenced
the reactions in the market at the out
set of the week This was not 70 the
liking OF the manlpulatOTS, and they
checked selling temporarily, at least,
10y a device frequently used by Mr..
Hartman, that of buying option calls
in the London market
United states Steel and Union Pa
cific were the principal stocks uulizei,
though nearly every thing in the ay
Of an American stock listed IN London
figured TO some extent. Options sixty
and ninety day and fOur-mOnth calls"
for very large amounts We're purchased
in the London market In his methods
the London option dealer follows a
fixed plan. He invariably purchases
an amount of stock equal to One-half
of that represented by the call This
business IS developed 10 "A very high
degree in London, and very prominent
houses engage in it They purchase
One-haf the stock against q call or
sell one-half against a put as a partial
hedge. On this occasion against the
calls representing very large amounts
purchased by New York the option
dealers after Tuesday bought in Lon
don and New York, creating the i'm
preston that the London marked was
in nowise concerned over the fall in
consols, the higher money rates, or
the high carrying charges on Ameri-
can securities, or at least that these
things apparently had no bearing
upon American stocks.
The Fail In ConSols.
Though not directly concerning our
markets, the most interesting develop
ment from our point Of view was the
fail Of British cOnsols to 7S24, the low
est price touched by the British funds
since 1871, or seventy-nine years ago.
consuls have long been known as the
premier security Of the world" and they
were once described by Gladstone as
the most animate Of inanimate things"
The records of their fluctuations day by
day or week by week, can be traced
back for more than $50 years. It is
marvellous TO follow them, to note how
they have forecast war or peace, com
meTcial prosperity or depression. They
measure the effects of the American
Revolution on English caDital- they fell