New-York tribune., 1910-07-11
FINANCIAL MARKET
Stocks Down on Liquidation
and Bear Pressure.

and heavy liquidation stock market
prices moved to new low records for the
year in last weeks operations, although
at the close the general level was above
the bargain figures reported in Tues
DAYS transactions. The leading railroad
stocks showed on Tuesday an avera ge
price of 1908. against 1916 at the be-
ginning of the current year. while the
chief industrials declined to an average
of S0.23, compared with Januarys high
point-9S.40. In the latter part OF the
week the character of the trading sug-
gested that the more important interests
were in favor of higher quotations. and
it was quite generally believed that in the
current week the level of market values
would show material Improvement, even
without the development of an active
outside demand for securities. Stocks
are in stronger hands to-day than at
any preceding time in many months
The recent liquidation has driven weak
accounts out of the market. including
many accounts that a few months ago
were considered strong, but which were
forced on the market as a consequences
of the severe decline that weakened the
best sort of margins.
In the slump last week and in that OF
the week before buying came from the
strongest aggregation Of capital In the
country, and in the event Of further
liquidation similar buying will be re-
ported, for the good reason that pur-
chases made at prevailing prices and on
declines from these levels eventually
will show handsome profits. 1t is good
time to buy stocks outright. Dividend
Yields are large, and there is no indica-
tion that anything is about to happen
that might upset the earning power or
American railroad and industrial cor
porations The big men apparently
have accumulated a vast line Of secur1-
ties. for in place of their recent extreme
pessimism they are now talking along
bull lines, even Mr. Ripley, of the Atchl-
son. who a few weeks ago almost wept
over the frightful outlook for the rail-
WAYS. owing to the passage of the rail-
road bill and the interstate commerce de-
cisions. finding that the country has not
yet gone to the dogs. In an lnterV1e"
published on Friday he says that the slt-
uation SO far as the crops are concerned
is satisfactory and that the effect of the
recent interstate commerce decisions Will
not be very disastrous"
In the decline that has taken place In
the stock market over a period practl-
cally representing ten months there has
not been an accompanying depreciation
in the actual worth of our investment
NO
been damaged by the confusion that has
existed on the Stock Exchange, but
MANY timid investors have converted
their holdings into cash because OF a
condition of mind that would give them
no peace until they could exchange their
certificates for actual currency, irrespec-
tive of the loss of interest involved by
the transaction and the sacrifice of SELL
ing good issues at quotations under the
original purchase price. 1t Is human
nature for holders of vested funds to
worry when they see the quotations Tor
| their securities declining at record
breaking speed, but it is unfortunate
that the same investors allow their Juds-
ment to be swayed by speculative move
noents rather than by considerations
based on factors governing the actual
worth of stocks and bonds Forced out
hulls and frightened investors have
nIanted a rich harvest for the capital
lists. who always have the money to buy
| on the declines, and for the professional
operators who early in the year assumed
a position on the short side of specula-
ton
There are various factors in the bust
ness situation that do not encourage the
expectation of expansion in our INDUS
tries in the summer months. but the
general position of affairs and funda-
mental conditions present no reason for
uneasiness over the future. The spring
wheat states are much in need OF raln'
and If the drouth continues there Will De
:. serious shortage in the spring Wheat
harvest a normal spring wheat crop,
however, supplies only small proportion
of our total harvests. Corn ana colton
are doing well, also minor crops, and at
this early period. with winter wheat
showing a large return, there is ade-
ouate reason for the prediction that the
value of our farm products in the cur
rent year will not fall far short or the
ss ono 600 record of 1909. If our
crops. are below normal the farmers may
still be able to pay off their automobile
loans by charging higher prices for their
products
At the moment conditions in the money
market point to stiff rates for loans IN
the autumn, unless gold imports should
reach large totals. Although prevailing
rates for sterling exchange apparently
do not permit of a profit on imports OF
the metal as a straight exchange trans
action. the general tendency Of the mar
ket appears to be in the direction or
| level that will encourage large engage
ments Of gold, this idea being based on
! the theory that the United States Will be
able to sell more securities abroad and
that a large amount of exchange will be
created by exports of our domestic prod
ucts. The engagement of gold made last
week for shipment to New York caused
some hardening in London discounts, out
| it was not thought likely that the Brit
ish capital would place any serious OBJ
stacle in the way of a movement of the
| metal to this side of the ocean, while 1t
was thought probable that New YORK
for several weeks would be an active
competitor for the South African con-
signnents in the London market. Do
| mestic exchange is moving against this