New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-28
FINANCIAL MARKET
Liquidation and Bear Attacks
Weaken Securities.

6reatcT commence IN the position 0f
the country's industries and in the pros
poets for general business expansion in
the rest Of the year has been created in
banking circles as p consequence Of the
action or the directors Of the United
States Steel Corporation in placing the
common stock on fiat = per cent divi-
dend basis, for the good reason that ow-
ing TO the known conservatism Of the
mana cement Of the concern and its wide
knowledge OF factors governing the bust
ness situation il is believed a per cent
rate would not have been declared if any
uneasiness had been felt in iron and
steel quarters over the future OF the ma
tons industrial activities. Speculative
Wall Street. however. finds in the alb
sence Of a public demand for securities
AT current quotations. in an exaggerated
Interpretation Of the effect Of recent
storms upon this years crops. in firme-
tendency in the money market and in the
necessity in many quarters for forced
liquidation as a result Of oyerspeculation
in the last year i'm stocks. commodities.
land and irrigation projects arguments
for operations FOR short account. regard
less or basic factors which do not war
rant sales Of investment holdings
Liquidation and bear pressure brought
about material declines I'm the stock
market yesterday. although in the initial
trading prices showed substantial ad-
vances in many issues notably United
States steel common. which was bought
on the theory that the increase in the
dividend would attract an active outside
demand. There vas little in the way or
public buying. but there was 4 lair
amount OF selling on the advance bv per-
sons who took the opportunity 10 get out
Of the market. on the idea that stocks
could be robought AZ cheaper levels.
Prices may 60 lower. but il may be we'll
80 note that there is too much company
or tho bear side to warrant extensive
commitments for short account al pre-
Nailing quotations Current sales Of
stocks are taken by substantial inter
ests. and when the latter are ready FOR
an advance there will be 4 bear panic
There is nothing unusual about the
present decline. and n presents no rea-
son for alarm on the part Of investors
Call money touched per cent yesterday
and more or less calling Of loans was re
ported. a movement altogether logical IN
view 81 the low position Of bank reserves
and the heavy gold exports this week.
Large sums Of money have been com
ing 10 New York from the interior in re-
cent weeks. especially from the West.
where bankers apparently are shutting
down on the extension IF credit i'm con
nection With the speculation IN land and
other projects which in the last year has
reached enormous proportions. outside
banks evidently scent danger in the
Western situation. and as consequence
are sending surplus funds 10 this centre
for use M the call money market in
which a fair return may be had on suCn
investments. although the general level
81 rates is relatively low, with the out
look, however favoring firmer quota
tions at no remote period. Bankers look
for 2 stiff loan market in the autumn
and in the event Of the development Of
an active bun speculation in securities
IN the near future and further hcaNy
shipments Of gold 10 Europe higher rates
before the end Of the current fiscal year
Sterling exchange WAS strong yester-
day with demand rates not far from the
level at which the yellow metal either in
coin or bars could be exported without
an inducement from foreign importers.
such as that recently offered by the
Bank OF England In it's high price quoted
for American eagles The British insti-
tuition has increased its gold holdings
through receipts Of gold from New York
10 an amount that eliminates for the
present. ~ least. the necessity Of bidding
for the metal in the local market. but in
view Of this Countrys poor position in
foreign trade We may he compelled 10
ship additional sums IN order ~ cover
importers requirements. against which