New-York tribune., 1910-07-30
FINANCIAL MARKET
Sustained Bull Movement in
Stocks improbable at Present.

The unimportant decline that took
place in stock market prices yesterday
was neither unexpected nor unreason-
able in view Of the sharp advance of the
preceding day and the changed position
Of technical conditions brought about
by the temporary elimination of the bear
account. Substantial interests sup
ported stocks in Tuesdays demoralized
market, and the shorts were heavy
buyers on the following day without the
accompaniment OF a material increase IN
public operations on the long side Of
speculation, while in the absence yester-
dav both of outside buying and further
active interest in the dealings by the
bankers who prevented a panic earlier
in the week professional traders again
operated for lower prices throughout the
list, their success being helped by a
selling movement for the account of
many people who decided to convert
paper profits secured by buying at the
low points Of the year into cash. 1t
need not be assumed for minute that
all the stocks bought on Tuesdays break
have gone into permanent obscurity. As
a matter Of fact, the larger proportion
of stocks taken in panicky markets soon
are offered for sale at higher quotations.
People who bought United States Steel
common on Tuesday at its low level saw
a profit Of more than eight points at the
opening yesterday And the larger num-
Der of speculative buyers in Tuesdays
market sold Steel common yesterday and
~ sIl hnr
that showed material advances over the
weeks bargain figures. The general
situation has been strengthened by the
elimination Of the syndicate that hoped
to become the dictators Of the American
railroad situation, but there is no good
reason for indorsing the view held in
some quarters that Wall Street is on the
eve of a tremendous bull speculation in
securities. The chances are there will
be little else than a traders market il
the course of the next few weeks, barring
the development of extraordinary con-
ditions affecting the intrinsic value of
our securities. Money was easy yester-
day, and sterling exchange was heavy
under the influence Of the offering of
bills against American securities bought
by foreign interests. Europe has taken
AN enormous amount of our stocks in re-
cent days.
Local bank interests have formed a
national currency association not be-
cause of any expectation Of the develop
ment of a situation requiring the issu-
ance of emergency currency in the
autumn but owing TO the belief by our
bankers that. irrespective Of the sound
money conditions here, there is always a
possibility of what may be called f1nan-
cial accidents. The banks have been
strengthening their reserve resources,
and they are now ready TO take ad-
vantage Of the AIdrich- -Vreeland law in
the event Of untoward developments,
while they have set an example for
banks at other centres where conditions
are not so sound as they are in New
York. Interior institutions possibly may
have use for additional circulation when
the requirements in connection with the
financing Of the harvests are the
heaviest, but K is quite evident that the
serious objections to the terms of the
emergency currency law viii stand in
the way OF q general application to the
Secretary Of the Treasury FOR the cir
culating notes which have been printed
and are ready for distribution at any
tine the Secretary may believe the needs
of the situation Justify the actual opera
ton Of the law. AT present there Is
nothing IN the outlook that warrants ap-
prehension over the money market.
The loan situation in the West is not
satisfactory. but Improvement may be
looked for as banks In most sections
have adopted a policy Of extreme con-
servatisIn, calling loans wherever pos
siEle and exercising unusual discrImina-
ton In the acceptance OF collateral on
new accommodation. We need a strong
bank position here as New York VIII be
compelled to bear the cLief burden Of
autumn crop demands. while they also
nisy be called upon 10 nnGAce federal
Treasury heads, as the governmont'e
working balance ir ceclinjng at 8 time
when Eorerament deposits in national
banks ara too small 20 be disturbed.
Fer tho ascal year 70 date the excess CT
expenditures ovcr receipts amounts TO