The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-07-24

/ Aliadc a temperance in the security
market OF the week but the bulk OF
the selling which depressed the gen
etai list particularly on Thursday and
Ilday, when prices broke with con-
SIoeraoIe violence, was OF professional
origin Some portion of the selling
! represented shift IN the market po-
! Sltlon OF Influential operators. It is
all one and the same TO this element
whether stocks advance OF decline,
provided they may guess the general
movement Alright Next to this. the
chief desire OF the large operators IS
for quick action and when they found
mat securities made practically no
response to goOd news. OF as they de-
Scribed II, turned dead" on such
favorable features as last Saturday
me oank statement. heavy gold i'm
port engagements. the adjustment Of
4 the la1o- difficulties on the Perfnsvl-
! wanna railroad and other happenings
or such character, they argued thar
the market wanted TO go down ard
Jh9y assisted the operation by shifting
from the long 10 the short side. and
oy working for reactions.
The reapDeaFance of liquidation in
Van Street was, of course. highly
dlsconcerting to the constrt7c+i,,e
g.
amount OF enforced selling was yerv
heavy. Prices recovered 0ufte essi1-,
on several occasions, particularly fr
tEc standard shares whenever nras-
sure was relaxed, or whenever tia
short interest bought back to taJxa
pronts- In fact, the market acted as
JEouSn Il were heavily oversold IN
many issues, md there is no question
ltlaJ on the declines some buying OF
the very best character made its an
pearanCe- This. OF course. represented
the execution Of scaled buying orders
10 which reference has already been
made such operations are clearly
apparent-for instance, in Union and
southern racine Pennsylvania rail-
road, ard United States Steel Per
sons buying these stocks now are do
Ing 50 because they believe that they
are cheap Should they decline fur
tner they VIII buy stfII more. because
they would be cheaper. It is the way
bankers operate IN g disturbed mar
keL
Speculation vs.. Investment.
Il cannot be said that the sDecuIatI,,e
pos ton is attractive for a sustained up
turn in prices The sensitiveneSs OF the
general list. In the face Of such an in
considerable Development as the reduc-
ton Of the dividend IN National Lead
common stock from 9 TO 8 per cent
basis, indicates quite clearly that the
market IS vulnerable and a prey 10
passing scares- which Is not a COndi-
ton favorable 70 confident operations
negotiated upon narrow margins with
borrowed money The bankers who are
buying now have no intention, appar-
entity, Of stimulating . speculative move
ment- The future Is entirely too uhcer-
tain for that They are picking up
little stock here and there. as II falls
from the hands Of necessItous or az
friShtad sellers, or IS depressed in price
by the aggressive operations of the bear
party, slowly accommodating their lines
Let US look ahead for few months,
or a year or So 70 the time when the
matters which now seem 50 disturbing
have passed away, or are clearing
they always do pass away OF clear I'd.
wars, pauiCS. peSLiie1CeS. crop disasters.
political disturbances these come and
60 Then, when men are feeling hope
fully inclined, and the market ma
chiuery starts Up again, and the Street
is filled with rumOrs Of deals and
runnCrs OF buying Tor control which
do not mateTia-iZe-and a lot OF gullible
Spectators are rushing in to buy shares
at 10, -, or % points above the present
level who VIII supply the SJCckSZ Why
the bankers who are slowly accumuia-
enr level paying 8 or Z Der cent, which
VII carry themselves in the money
market during the interval and VIII re-
turn rich rewards 70 she purchasers IN
the end This Is the way bankers grow
rich while the average margin specuia-
tor grows poor
1t is, of course wholly possible that
stock prices may be forced up tempo
rar1ly by a drive against the short in
tereSt on some passing development
That has been done repeatedly of and
on during the last six months. but IN
less the movement is sustained either
by the activities of the big men
which seems unlikely, for they prefer
To buy al low rather than high prices.
ranks Of the public, Of which there IS /
faint hope, any Improvement SOw is not
likely to be very long continued, or
extend very far For a sustained spec
ulative bull movement two things are
esSeuLial- complete confidence IN the
fundamental situation and an abundant
supply Of easy money Wall Street at
the present time Is lacking in both re-
quirements, nor does II seem possible !
to bring the two into combination again
FOR some time to come But matters
y III clear I'D IN time. and while the
speculative market presents no great
attraction now for the man who buys
on borrowed money, the situation is /
steadily working in favor Of the man
who buys Investments outright Tor cash /
Heavy Loan Expansion
Undoubtedly the most important de- |
veIopment OF Wall Streets business
week was the report Of the Comptroller I
OF the Currency, showing the condition