The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-08-30
WALL STREET NEWS
Upward Movement LaStsO Only
First Hour of Trading.
STEEL COMMON HAS A BOOM
Advance Due 10 Difficulty I'm BOr-
rowing the StOcIs-Dny Closes with
Net Gains IN Most Active stocks.
Cotton Prices Up In Sensational
Manner-MOney Rates Unchanged.

New York. Aug. 29.-The brisk upward
movement in the first hour to-day. which
was the only period in which the mar
ket was at all active. was lmpeled very
largely by the circumstances that before
the opening Of the market Steel common
loaned fiat. that Is that spectators
obliged 20 borrow the stock in accord
snce with short contracts received no
interest on the money they deposited with
lenders Of the stock On few occasions
IN the past has Steel common-of which
the amount outstanding. S500000.O00 Is
greater than OF any other stock-been so
difficult 10 borrow as 10 force spectators
short OF the market TO bid fiat price.
and the extraordinary loaning rate to-
day gave the outward appearance OF a
short interest that was widely overex-
tended and a market that was again
heavily oversold.
Spectators short Of stocks accordingly
bought in heavily IN the early trading.
and before the covering movement sub
sliced there We're gains Of one and three
quarters points IN Steel common and
one 10 three points In the other active
stocks. But It became known subse-
ouently that only a small amount OF
stock had been borrowed fat. brokers
offering 20 lend the stock finding no tax
ers az that rate after the opening. and
traders on the floor were divided In the
opinion as 20 whether or not the ex-
traordinary loaning rate was market
device.
Tone Firm Throughout.
The trading was again almost entirely
in the hands Of floor traders and other
experienced operators. and after the tech
nical position OF the market had been
rendered less strong as a result Of the
imDulsive covering In the early trading.
stocks sold of from the high prices
Throughout the session, however. the
tone was firm, and the close showed sub
stantlal net gains on the day In most OF
the active stocks.
In the cotton market developments were
much more lively and sensational than
IN stocks. Cotton for immediate delivery
and on contracts maturing this month
sold uD more than 3 cents pound. or
SIS n bale 20 the extraordinary price OF
20 cents pound. or 500 a bale. The price
was a reminder OF cotton values I'm civil
war times. and has. IN fact. not been ex-
ceeded since 1873. but in stock market the
cotton incident passed without influence
II was everywhere realized that the adj
vance simply marked the elimination OF a
speculation or corner in which but a few
persons were engaged. that very little cot
ton was sold al the high prices and that
az -
mitments IN August cotton had A position
In stocks which might be imperiled by
that movement
New Crop Options Decline.
AS displaying the purely speculative ma
ture OF the advance in August cotton II
was significant also that the new cror
options declined. while August was scor-
ing IT'S sensational advance. The October
and later options sold around 1914 cents q
pound. while August cotton sold 6lh cents
a bale higher.
The opening OF the week showed nc
Improvement I'm the demand for stocks
and bonds from the outside public. and
brokers generally do not expect decided
Improvement until after the market re-
cess OF three days beginning Saturday
Some foundation for such an improvement
were laid by the developments Of the day
Comments were generally favorable OF
President Tafts tariff letter. and some OF
the covering or short contracts was due
10 II, for II was realized that many specu.
lators had been misled by advance re.
ports OF the Presidents utterances. Cror
news was generally favorable and both
the wheat and the corn options declined.
Money rates remained substantially nm.
changed. me banks shipped 100000 tC
Canada and 100000 20 New Orleans. and
there was brisk outward flow 70 othe
Interior centers. but the movement 20
crop purposes showed not the slightes
sign OF taxing the extraordinary prepare
tons the banks have made % meet II