New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-07-07
FINANCIAL MARKET
Weakness in Sterling Exchanges
Suquests Gold Imports.

Liquidation and bear pressure carried
prices for stocks to new low records for
the year in the early dealings in yester-
days market, although in the afternoon
operations sharp recoveries were record
ed IN most parts Of the list on covering
Of short contracts based on the appar
ent exhaustion of the selling movement
for outside account and on the knowl-
edge that the largest banking interests
in the Street had been active buyers on
the decline It may be stated without
fear of contradiction that in the declines
OF recent days stocks have been alb
sorbed by people who represent the
greatest aggregation of capital in the
United States. And II also may be
stated that the same interests while
bl1ving high grade investment issues at
bargain levels have put forth the most
pessinlistic views on the general situa-
ton Timid investors have been selling.
Operators who a few months or even
few weeks ago thought their bull ac-
counts well intrenched have been COM
PEELED to liquidate their speculative
holdings as a consequence Of the steady
loss in prices for the good reason that
their credit with the banks has declined
in greater proportion than the market
value of their stocks. while traders who
carly in the year assumed a position on
the bear side Of the market have gath
cred in rich harvest at the expense Of
frightened investors and forced out bulls.
Intrinsic values have not been dam
aged by the developments in the stock
market. Nor has there been any de-
velopment outside the Stock Exchange
that has warranted the sale Of invest
rnent securities The stock market
practically has been declining for eleven
months and persons who have the means
10 make investments in solid dividend
and interest bearing securities at the
current quotation level eventually will
find a profit in the transaction This IS
not an idle prediction. unless this great
country that produced from the ground
last year products representing money
~s1,e of moro than SS010.oeo.0Go is to
be destroyed bv an overwhelming cata-
clvsrn At the present time there IS
more trouble in the air than in the SOIL
In the last half hour of business yesteT Z
l1ue Of trading. and at the close net
gains were shown throughout the list
From a bull point Of view the market
acted better in the late trading than at
any time in many days. Weakness In
the foreign exchange. market. following
the decline in sterling rates of the last
few weeks. encouraged the expectation
in Wall Street circles of exports OF gold
from Europe to this country in the near
future. Indeed, an engagement was re
ported. though not confirmed, That
London was worried over the declining
tendency in exchange at this centre was
reflected in firmer discounts at the Brit
ish capital, but the actual position OF
the local market however, did not war
rant the theory that the yellow metal
would be imported in volume without
further material decline in sterling quo
tations.
At yesterdays level for sterling ex-
change gold could not be imported at a
profit. but this fact does not preclude
the possibility Of the development of
conditions in the next few days that
might induce our bankers to bring in the
metal. 1t is possible that Ne" York
may be competitor for the weekly ar
rival Of gold from South Africa in the
London market next Monday. The local
banks have lost a large amount OF money
TO the SUb-Treasury in the last two
weeks on account OF payments on cor
poration tax account, while their ship
ments OF currency TO the interior have
Increased materially, a reflection OF
which is found in the course Of domestic
exchange, but SO far there has been no
important advance in call money rates.
although time money quotations are dis
Jinctly firmer- II was pointed out in
this column early in the spring that
money would probably rule at a high
level in the autumn. Current conditions
suggest no reason for modifying this
opinion The demand on this centre for
funds promises to be unusually heavy,