New-York tribune., 1910-07-26
FINANCIAL MARKET
Liquidation of Stocks from Sub.
StantiaI Sources.

Trading in yesterdays stock market
was accompanied by further nquldatlon
and selling pressure by the professional
element the movement resulting IN
sharp declines in the prominent shares,
which ended the day considerably under
Saturdays closing. There was little
huving outside of that involved IN the
covering of shorts. Supporting orders
that were placed at the opening failed to
check the liquidation, and in the best
part of the five hours of business no at
tempt was made by the substantial in
terests to interfere with the selling,
which in many cases came from sources
of supposedly relative strength. The
constant easing in prices has weakened
holdings that recently were well in
trenched on borrowed money. and much
of the liquidation OF recent days has
been for these accounts. The so-called
small people We're forced out of the mar
ket long ago, and the larger spectators
are now the chief sufferers. No market
observer is willing to predict the extent
of the current movement, especially as
q few weeks ago it was generally be
Reports yesterday from the corn belt
were not as encouraging as those of the
last week the advices of damage to the
plant by intense heat and lack of moist
ure being intensified by a sensational ad-
vance in the price of corn, which natu-
rally encouraged bear activity in stocks,
particularly in the early operations,
when declines of substantial fractions to
a point or more from the closing in Sat
urday's trading were reported. In COM
rarison with the volume of selling. how
ever the actual losses were not heavy
Greater weakness developed among
some of the speciaIties than among the
active issues, as, for instance, in St.
Louis Southwestern preferred. st. Louis
&, San Francisco second preferred, Sloss-
Sheffield and Westinghouse. While
selling of United States Steel brought
forth the rumor that the dividend on the
common would be reduced at the meet
ing of the directors to-day the character
of the sales did not suggest that
change would be made from the per
cent rate established three months ago.
After a sharp rally in the first part of
the afternoon liquidation was resumed,
last prices being at or near the lowest,
with especial weakness in Consolidated
Gas and Atchison.
The reserves of the local Clearing
House banks are stronger to-day than
ever before recorded at this period of the
year. with the exception of the corre-
spending time in 1903 and 1904 More
over. it is proba bic that in the current
week there will be further net addition
to cash and reserve resources through
receipts of gold from abroad, receipts
of currency from the interior and eX-
cess payments TO the banks by the fed
eral Treasury, while if the current liqui-
dation in the stock market continues
there should be contraction in loans
large enough to play an important part
in placing the reserve above legal re-
quirements at an unusually high level.
Our bankers secured the South African
gold offered in the open London market
yesterday, amounting to S3,Io,po
There is no profit in importing the yell
low metal under current sterling ex-
change conditions, but il is apparent that
counts for little in the calculation of men
who have in mind the probability of
high rates for money later in the season.
when Wall Street will be called upon TO
finance the requirements of the interior
I'm connection with the gathering and
marketing of the crops. TO say nothing
of general mercantile needs and the pos
sible necessity of strengthening an out
of-town situation weakened by over
speculation and overextenston of credit.
one OF the most encouraging factors
at present is the policy of the New York
bankers TO prepare for a possible emer
gency Trouble is looked for in some
quarters but the chances are no dis
turhance will develop that cannot be Sue
cessfuIiy handled. The stock market has
set the pace in the matter of liquidation
There must be liquidation in other lines.
hov-aue- before perTnapent improVesnput