New-York tribune., 1910-01-03
FINANCIAL MARKET
MOST STOCKS HIGHER
Last Week of 1909 Witnesses
Highest Money Rates of Year.

With the exception of a brief period
of weakness following the sensational
movement in Rock Island shares on
Monday, the general course Of securities
prices in the last week was in the di-
rection Of a higher level, sharp ad-
vances being recorded by many issues
on buying movement that appeared to
be discounting a demand for stocks in
cident TO the heavy January interest
and dividend disbursements. It is esti-
mated that upward of $4,000. 900 will
be paid out to owners of American in
vestment stocks and bonds in the cur
rent month, and Wall Street evidently
is figuring on a January rise Of no mean
dimensions. The fact that stocks are not
to any extent in the hands of the public
encourages the expectation that the
substantial interests who are the chief
holders of issues bought for speculative
purposes will exercise all their energies
toward the making of an active bull
market in the first part OF the present
year, and, as generally happens, the
public doubtless will be willing to buy
at advanced quotations, unless it has ac-
quired more market sense than shown
in its operations in the past. Leading
banking interests naturally are in favor
OF stability in market prices, with
gradually hardening tendency, for the
good reason that the success Of new
financing requires a firm and active
market for securities.
Spectators have short memories, and
-
formance Of Rock Island common will
discourage outside traders from buying
stocks in a highly manipulated market
The movement in this Issue brought
losses to many operators. and while the
Stock Exchange authorities have inves-
tigated the affair there is no surety that
similar transactions will not take place
in the future unless the governing COM
Inittee Of the exchange can find way
to prevent the reckless operations of
gamblers from reacting on the general
and legitimate business Of Wall Street.
In case OF priZefighting contests in
which it is shown that the gentlemen
OF the ring are not acting according to
the ethics of the sport bets are called off.
The Stock Exchange Governing Commit
tee might exercise its power, which is
real and can be made effective, to cancel
all stock market orders executed on any
occasion when it is known, though 1t
may be impossible to supply proof. that
gross manipulation is being employed to
advance or depress quotations. In
Mondays operations there were many
instances in which innocent traders put
in orders to buy Rock Island at the
market. assuming that the market price
would be in ting. neighborhood of Fri
days closing at 49,. AS q consequence
cf the manipulation CT the issue these
buying orders were executed from 10 to
go points above the opening, and in the
subsequent rapid decline margins We're
wiped out and heavy losses suffered by
operators who supposed that they were
playing in a fair game The business of
the financial community, which repre-
sents the life and prosperity of the ma
tion, suffers every time stock market
gamblers are permitted to ply their ille-
gitimate trade.
The year just closed has been one of
great activity in the stock market, but
has not witnessed widespread demand
for securities from the public, though
early in the year considerable amount
OF permanent purchases were made for
investment account, the movement
diminishing in the last six months
owing to the high levels prevailing for
most first class issues. If the speculat-
ing public can be induced to come into
the market in 1910. thus relieving
cliques and combinations of their large
holdings, there should follow the usual
collapse in prices and the development
of good opportunities for the purchase
of sound securities at reasonable prices
According to all indications, the new
year will be marked by further healthy
activity in our industries. and declines
that occur in the stock market doubtless
will be based upon speculative condi-
tons rather than on factors affecting
the intrinsic value Of investments. I'm
strong, and il is to be hoped that en-
thusiasm in trade and speculation will
not run TO an extent inviting a strained
credit situation. The demand upon
capital in the current year will be heavy,
and it is not improbable that foreign
funds will be attracted TO this country
in large volume. owing to the favorable
opportunities that will be offered for the
placement OF money in new issues by
our railroads, to the growing safety of
American railroad and industrial con-
Germs as a channel for the investment OF
capital and to the promise of real cur
rency reform. The establishment OF a
scientific currency system responsive TO
the varying demands of trade would be
an important factor in keeping our gold
at home and attracting funds from other
countries.
Though money on call was strong in
the closing days OF 1909, there was no
indication OF disturbance in the market
in the near future. 1t is quite certain,
however, that rates for loan accomno-
dation viii rule at firm level for