New-York tribune., 1910-07-29
FINANCIAL MARKET
FOREIGN Houses Continue to Buy
American Securities.

Covering of short contracts, induced
NV the nresence in the market of sub
stantial banking interests, buying by
commission house operators VINO were
under the impression that the sharp ad-
vance in prices in Wednesdays market
foreshadowed the immediate develop
ment Of q bull campaign on the STOCK
Exchange and a moderately active oe-
nand for securities from investment
sources were responsible for marked
Improvement in quotations in yester-
6av,s dealings Maximum gains OF from
. to points were recorded among the
prominent issues. especial strength being
shown by the copper shares, Reading
Union Pacific and United States Steel,
the last named selling about points
above its low figure in Tuesdays slump,
with its high level Of the day - points
under the high record quotation made
last January. Realizing sales were met
in volume in the early afternoon, but
the selling failed to bring about I'M
portant reactions in prices, though IL
served to check the advancing move
-,o,+ Traders who believed that the
advance had been too rapid renewed
their interest on the short side or the
market, and at the close the professional
element was disposed to take the view
that the recovery from the demoralized
n,.ice levels recorded in the first part OF
tbe week would not run much further
without heavy new buying from outside
interests.
General news developments were en-"
couraging to the advocates or higher
nrices. Advices from the corn belt
failed TO show any extensive injury 10
1he growing plant, the drouth being con-
6ned 10 states that produced last year
ahout l6 per cent OF the total harvest.
Furthermore. reports from the Norlh-
west show q better yield OF spring
wheat than recently indicated. Botn
wheat and corn prices closed lower
London houses again were active buy
e-s Of stocks in the local market, their
purchases amounting to upward or oo'-
600 shares. making a total of more than
r500oO shares bought for foreign ac-
,o,,,,+ ir the current week. while Ster-
ling exchange was heavy, as a conse-
O
this European absorption Of our secur-
tiles. Europe has a habit of buying our
stocks at cheap prices and selling them
when every one is crazy to buy at IN
fated levels. Local money rates were
easv. The Bank Of England MADE a
favorable weekly return, showing pro-
norton of reserve to liability well in ex-
large amount of stock bought on
the slump in prices in Tuesdays market
was sold on the rise yesterday, and 1t Is
likely that further advances Will bring
out the same sort Of selling, as much OF
the specula tive stock taken at the low
levels was not for permanent holding.
The public has been buying for invest
ment account notably in odd share lots
among the prominent railroad and in
dustrial issues. but as yet there has been
no indication OF the development in the
immediate future Of broad OUTSIDE
speculative demand for securities
Though money rates at this centre are
cheap. the demand for call accommoda-
ton is not active, while the financial In
s-itutions are not pressing their funds
upon borrowers Indeed, policy OF ex-
trerne caution in the matter of making
new loans has been adopted, and only
the best Of collateral is accepted. Lead
ing banks and banking houses prevented
a serious disturbance in the stock mar
ket in Tuesdays operations, and they
appear to be working along lines that
will discourage further attempts OF
spectators TO secure control of Amerf-
can railroad properties, as instanced in
the case of Rock Island. Wabash, Mis-
souri, Pacific and Lehigh Valley. The
First National Bank and Morgan in
terests, Kuhn, Loeb & Co. and Speyer
& Co form a combination that no spec
ulative interest can oppose and come out
Of the fray with anything but tattered
colors The periodic elimination from
Wall Street of spectators who do Meth
ing for the welfare of the country or the
properties in which they conduct their