New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-07
FINANCIAL MARKET
kinu Edwards Illness WeakenS
Stock Prices.


Exchange on the announcement of the
serious illness Of King Edward were re-
Elected in a weak opening in the local
market, though the downward move
ment here was not accompanied by
particularly heavy volume Of selling for
foreign account Arbitrage houses sold
upward Of twenty thousand shares on
balance. but the effect of these opera
lions on local sentiment was especially
marked, owing TO the fact that in recent
days London has been an active buyer
here, with all indications Of continuing
its operations along these lines for days
TO come The Kings illness naturally
injected a new factor into the specula-
tive situation, due to the close relations
between the great international markets.
and the effect of this unexpected de-
velopment upon prices in London and in
New York was intensified by reason Of
the unsettled financial and political con-
ditions in England, which suggested
complications on the accession of a new
monarch TO the throne. Under the cir
cumstances a cessation OF London buy
ing in the local market was not sur
prising; neither was the local specula-
tive selling illogical. Maximum declines
ran from to more than 2 points in the
active issues, with unimportant rallies
before the close, Amalgamatod Copper,
Reading, Union Pacific, Southern Pacific,
United States Steel and American
Smelling being the chief features among
the active issues. While some people
have been selling the last named stock
in recent weeks. owing to the overpro-
duction of copper and the unsettled con-
diti0n Of the trade, others who are bet
ter Informed have been buying 1t for the
good reason that the earnings of the
company are based on the tonnage OF
ore handled, and are not dependent upon
the price of copper. AS matter Of fact,
the large production OF copper is help
ing the earnings of the smelling COM
pany, which is not a copper ore prOduc-
ing concern. In addition to the selling
based upon the course of the London
market considerable pressure developed
as d consequence Of the strength in the
wheat market, which accompanied I'M
favorable reports from the winter wheat
fields.
According TO the known movement of
money in the current week the local
banks have gained from all sources, the
total amount of added cash being esti
mated at more than S6.000GU Re
ceipts of currency from the interior were
heavy. chiefly from nearby points which
sent their funds to this centre to take
advantage Of the higher rates prevailing
in the call money market, while ship
ments were in large part to the West,
including large Sub-TreasuTy transfers
TO San Francisco. The course OF money
rates in the last few days suggests a
stronger showing in to-day's Clearing
House statement of actual bank condi-
tions as Of last night than reported
week ago, in spite Of the active bull
speculation on Wednesday and Thurs
day, and it would not surprise the Street
if a large contraction in loans should be
shown as a consequence of the heavy
/ liquidation that eliminated for the time
in Tuesdays market. Doubtless the de-
cline yesterday caused some changes in
the loan account. and il is possible that
the financing Of the May option in the
cotton market may figure TO q substan-
tai extent in bank exhibits to-day
Sterling exchange rates moved with con-
siderable irregularity, and bankers were
somewhat AT sea over the course or tne
market ia the immediate future, owing
- the uncertainty over the amount Of
bonds that may he placed abroad and
The effect upon foreign markets for our
securities in the event of fatal ending
of the illness OF the King Of England.
Financial markets are extremely sus-
cepti'Ic TO changes in heads OF govern
menrs, and e IS not impossible that the
dcath Of King Edward would induce the
cautious French bankers 10 postpone in
definitely fin2l negotiations for the
financing q American railway bond
issues. Ease in our exchange market
for the present depends upon European
buying OF our securities, and any de-
velopment that might tend 10 upset the
present favorable attitude of foreign
bankers toward American investment
issues doubtless would have a most un-
favorable effect upon sentiment and
prices here.