New-York tribune., 1910-07-25
FINANCIAL MARKET
Stock Prices Move to Lower
Levels on Speculative Selling.

count Dull speculation at this perlou o.
the year is the rule rather tf1an the eA-
ceptjon. owing in large part to the un-
willingness of Wall Street and the pub
lie to take an active interest in STOCK
Exchange business at time When IL Is
impossible to figure accurately on lhe
outcome of the harvests- OUTSIDE oi
spring wheat, crop prospects are prom
ising, but 1t is too early in the season "
tell definitely whether or not the sea-
SONS WELD will be above or below nor
NAL. Furthermore, dulness in stocks is
accentuated by the fact that the larger
number of important financial lntereS'S'
to say nothing OF large army OF acIlNe
Stock Exchange members, have put "dli
Street behind them in favor OF the JOYS
of a summer vacation. apparently VIII
the intention of staying away until sep
tember unless the course of affairs IN
the financial and business world should
develop conditions warranting specula-
tive activity Investment buying Is nsht
in volume That there is, however. lole
capital seeking solid investment Is re-
1ected in the success of the Phliauei-
phia bond offering last week as a popu-
lar loan. Foreign houses are buying
more Of our stocks than they are selling,
hut the movement is not heavy enough
to be much of a factor in the sterling
exchange market, which is stronger as
a consequence of frmer London dls-
counts and easier money at this centre
A considerable amount Of finance bills
recently were put out in this Market
supplying the chief argument for lower
sterling quotations, the profit in the
operation now, however, having been
eliminated by changed international
monetary conditions. which may, never
theless. again move in our favor to the
accompaniment of further imports OF
gold. Changes in stock market prices
last week were in the direction OF lower
levels as rule and represented bear
pressure and speculative liquidation, the
copper shares among the prominent Is
sues supplying the only bull features on
moderately heavy buying based on the
idea that the chief interests in the cop
per trade had reached an Informal agree
ment to curtail production. develop
ment much to be desired. The price OF
conner is at a level above the cost of
production and buying of the metal is
moderately active, but the output OF
the mines is far in excess of the con-
sumptiye demand and has been for
many months. The situation is un-
healthy and ought to be corrected by
reduction in production. Curtailment
has been going on in the pig iron mar
ket and in the manufacture of cotton
goods for sound economic reasons, and
the copper market will have to follow
suit if decentralization in the industry is
to be avoided.
Irregularity is reported in most lines
of trade, and summer dulness restricts
profits, but the earmarks Of business de-
preston are lacking and there is no IN
dication that the country is TO run into
period of money and industrial dis
turbance. The National Lead Company
reduced its dividend on its common
stock last week, but the action of the
| directors did not foresha dow a general
/ lowering of dividend returns. Our
| standard railroad and industrial shares
are in no danger Of going to q. cheaper
dividend basis. and in view of the surety
| that gilt edged investments will con-
| tinue to occupy their position as income
| yielders their current market prices look
attractive though as yet there has been
no active movement of capital into this
| class Of investments, owing, perhaps, to
| the idea that quotations Will go to a
| lower level in the course Of the sum-
mer and to unwarTanted fears that fun
| damental conditions will be weakened
| by the uncertainty over the outcome of
| the fall Congressional elections. by the
| heavy speculation that has been going on
| in land and commodities. by adverse de-
| cisions in the American Tobacco and
| Standard Oil cases, now pending in the
| Supreme Court, and by various other
| factors that are more in the air than on
| the ground. The Secretary Of the Treas
ury has advised the banks to form cur
| rency associations under the provisions
| of the emergency currency law, and
there are some foolish enough to be-
| lieve that this advice means the de-
velopment of trouble. Secretary Mac
| kedEl ana IlS DdHheIS dl pIeSelIL sec
no conditions ahead that will require
| the issue of emergency currency, but
| they believe that by preparing for
| trouble nothing in that line will happen.
The banks in this city are in a strong
position. and it is learned that the banks
| throughout the country are now working
with a fair degree of success to
| strengthen reserves by adopting a pol
| icy Of the utmost conservatism in the
matter of accommodation for specula-
| tive purposes. There is a movement on
| foot TO check extravaganza and over
! speculation, and good results already
have been obtained. So much has been
said and written about the country run
ming into a panic as the consequence of
| oyerextension of credit, which means ex-
| cessive speculation and extravaganza by
! individuals and corporations. that the
| world of money and business is prepar-
| ing for that event. which should be
avoided as 2 result Of the present ten
dency on the part of the people to make
ready for a storm. The stock market
| started to put its house in order many
months ago At no remote time stock
market quotations will begin to discount
the wealth and progress of this great
country. Spring wheat yields will be
light. hut from current indications there