The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-08-07

New York, Aug s.-In a market as
dull as that to-day Il Is exceptional to
role such strength as was maintained
from the beginning 10 the close, and
such gains as were scored in most Of
the active stocks and in many of the
ordinary inactive and investment shares.
The turnover was but little IN excess Of
10000 shares. and it was probably true,
as the majority Of brokers maintained,
that most Of the buying represented a
covering OF short contracts. But the mere
fact that spectators short OF stocks
were anxious 20 cover displayed again
the change In the attitude of spectators
toward the market, and the fact that
stocks TO retire short contracts could
only be had by bidding prices upward
supplied additional evidence OF a thor
oughly oversold condition.
In the ordinarily inactive STOCKS fea-
lures OF the market were gains OF
points in American Linseed preferred,
Sss points in Laclede Gas. 8 points in
Minneapolis. ST. Paul and Sault Ste.
Marie. and 3 points IN Union Pacific pre-
ferred.
Flax Crops Affected.
The gains IN American Linseed pre-
ferred and 500 were reminders Of the
declines in those stocks and IN National
Lead when II was reported that the fax
and wheat crops in Canada had been
ruined and the directors OF National
Lead reduced the dividend on the pre-
text that the fax crop had failed. The
advance Of Union Pacific preferred a
stock limited to a I per cent dividend.
though having a potential interest in the
company's assets, recalled the still more
ancient history OF the numerous occa-
sions when the stock has been moved
far beyond the parity of its income re-
turn 20 the accompaniment Of stories vf
a segregation of assets. News Of the day
had little relation to market movements,
the weekly trade reviews simply confirm
Ing previously well-understood tenden-
c!es in general business.
The bank statement, published after the
close Of the market, also confirmed ex-
pectation based on the known movements
OF money. II showed an increase Of
s5.5Oo,OOo in surplus reserve. and a total
surplus Of more than $1,000 900. which is
twice the amount at the end OF the cor
responding week last year. and. OF course,
displays an extraordinarily strong bank
ing position.
On the week the active stocks gained
on the average more than $3.50 a share
In the first two days Of the week the
market was at times unsettled by costly
liquidation and abrupt declines in Chesa-
peaiIe and Ohio and other stocks in the
so-called Hawley system, but after blocks
OF these stocks were transferred at pri-
vats sale, the market rallied sharply.
Forced Liquidation Ends.
From that time until the close Of the
week, though at times subjected TO de-
termined selling pressure. the market dis
played no signs o. weakness in any par
ticuiar stock or group Of stocks, thus con-
hrming the assurances Of bankers that the
forced liquidation OF wealthy men, Grip
pied by the decline. had been completed
In the last two days. in particular, the
market offered sturdy resistance TO SELL
ing pressure and IT'S tone IN these DAYS
was composed and calm. The develop
4iiOiAe VI tHo "eehs most encouraging TO
the constructive side OF the market. was
the relief OF the Kansas corn crop from
the long drought which threatened II
with severe damage. The improvement
to the corn condition again revived the
estimate OF a total corn crop in excess
OF s,oO0,OO0,0OO and this estimate is likely
TO be maintained even though the gov
eminent crop report TO be published Mon
day shows a deterioration. The report
is OF date August l. and It is since that
time that rains have benefited the crop.
The indication Of a record yield Of corn
compensates for the damage TO wheat
and damage to cotton, and seems to as
sure aggregate crops OF average money
values.