New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-02
FINANCIAL MARKET
Liquidation and Bear Attacks
Weaken Securities.

prices by traders who have not been
Identified with the bull side OF the mar
ket for many weeks are responsible for
lower prices on the Stock Exchange
The readjustment of quotations to a
in most markets, and while the specula-
tive situation has been materially i'm
proved by the liquidation so far record
ed it is not unlikely that the movement
| will be carried further, with ultimate re
suits in favor of the best interests Of
/ Wall Street and the general business
situa ton. Prices for securities are ap-
preaching a range where outside capital
may be expected TO come into the mar
l1et. an indication of buying Of this sort
. being found IN the character of the pur-
| chases on the declines of the closing
days of the last week. which indicated
heavy odd lot buying and absorption by
people who only take stocks when. based
! on money market conditions, the return
on the investment is reasonably salts
factory. The investment demand is still
inactive and the market is g1utted with
new securities, the total of which APP
parently soon will be increased through
new bond offerings by railroad COM
panies, but with the reimbursement Of
bank loans and deposits now under way.
and with the elimination of weak spots
in the situation and the return of normal
conditions in all markets. enough home
and foreign money doubtless will appear
TO relieve bankers and underwriting syn
dictates of their wares
Too many stocks and too much grain
and cotton have been carried on Dor
rowed money. There has been oTer6peC-
ulation in all lines at time Of growing
strength in money rates and an unwar-
ranted extension Of credit by many iTlstf-
tutionS, especially in the West where
| land speculation has reached dangerous
proportions. but, fortunately, collateral
against loans is now being closely scru-
tiniZed, loans against speculative COM
mitmentS are being called and greater
conservatism is being exercised by all
interests in money and business, all of
which eventually will strengthen the
general situation in this country and en-
hance the value of American investments
in the eyes Of foreign capitalists. Rumors
in Wall Street of coming disaster are the
development of a wholly natural decline
in prices for securities rather than the
cause of Il, but at a time Of forced liqui-
dalton by pools and hammering of prices
by the gentlemen of the bear element
such runlors serve 70 frishten the small
investor and 10 a certain extent cause
hesitancy In general business. ref1ec-
ton of the latter being found in the cur
rent irregularity that is reported in most
lines Of trade.
Unfdvorable factors are being rapidly
discounted by the course of stock mar
kct prices. Indeed, in the larger number
Of solid American railroad and industrial
securities current quotations are at
level that more than measures intrinsic
value, and for this reason substantial
Wall Street interests who have ready
capital are buying on all declines. in the
confident expectation that the present
lull IN various departments of the coun-
try's business will not last for any length
of time and that nothing will develop to
wipe out the real worth Of sound divi-
dend and interest hearing stocks and
bonds. Many commission houses in the
Wall Street district are stepped in pes
simisn- They believe every unfavorable
rumor and pay little attention to basic
conditions. which present no reason for
apprehension over the future. Exag
gerated reports of damage to the crops
are almost welcomed because the ordi-
nary speculative mind when once de-
pressed insists in accentuating its woe
on every opportunity, change in the
course Of ticker furnishing the only
tonic for its dropping spirits. Crop dam
age reports came in fast and furious iii
the early part of last week, but at the
close it was found that the outlook held
forth the promise of normal harvests
after all even in the case of cotton,
which of course was affected to a con-
siderable degree by the cold weather in
certain sections of the cotton belt. Ad
verse climatic conditions developed, but
not too late for replanting i'll localities
where cotton was damaged, and advices
received Saturday showed that this OPP
Grafton was general in the affected dis
trict
Although large sums of money have
been corning to New York from the in
terror in recent weeks, local bank re-
serves are at the lowest point of the year
ss q consequence of the heavy shipments
Of gold to London, losses by the banks
on their operations NTH the Sub Treas
ury and the heavy loans OF the Clearing
House institutions Further gold ship
ments are still possible. but it is not DO
liered in foreign banking houses that the
metal viii 90 out in any great volume in
the near future. owing TO the improve-
,nerlt in the position of the Bank of Eng
land, which has brought that institutions
,,ronortion of reserve 20 liability 10 4
level ~eH In excess of the average for
This time in recent years. and TO higher
local money rates. Call money touched
per cent last week. but eased off at the
close. The outlook, however, does not
favor easy money at present, While bank
ers here and in the West look for stiff
rates in the autumn, unless there should
be crop failures and general trade de
rression. of which there is not the slight
est indication at the present time,
Fundamental conditions in the bust
ness world are sound and reactionary
tendencies from the record breaking
speed noted in the country'5 business
following the panic of 1907 are being sue