The Washington times., 1910-07-03
MORE CHEERFUL FEELING
AT THE CLOSE OF THE WEEK
Steady Character Indicating Heavy Liquidation by
Pools Banking Interests Give List Some Support and Talk
More EnCOuragingy

NEW YORK, July liquidation !
ran an almost unbroken course IN
/ the stock market OF the week, from
I the opening hour on Monday until
about midday on Thursday. when
/ some effective support vas accorded
the security list TIE assistance
came none too soon From an order
] " retreat the market had pa sed
I into q demoraIizing roUt w en-
I threatened to terminate in com
pIete collapse The appearance Of
bankers buying, in conspicuous is
J sues such as AmaIEamated Copper
lAtchisOn. St Paul Reading, Union
and Southern Pact1c and United
States steel common. was the signal
for extensive short covering by the
professional element, while the very
low level 10 which prices had beer
I driven by neccssitous ceiling, and BY
( bear hammertng. attracted some buy
; ing OF excellent character. Under
the combined influence Of the sup
/ porting orders, short covering, and
I investment pun chases. the market
/ steadied. and then. experienced a mod
/ crate recovery which continued on
/ Friday
! With the support accorded 10 the
stock market BY banking interests
/ on Thursday. speculative sentiment
/ underwent a change for the better.
How permanent. or how well found
/ ed this change may be still remains
/ to be determined Concerning 1t
opinions in Wall Street are very
widely divided It is quite apparent
that this divergence of views as TO
the future is based largely upon the
manner IN which the two great
! groups in the financial district ap-
/ praise the market position and the
I influencing factors Thus, while the
{ speculative element proceeded along
7 the line that stocks severely and I'M
/ duly depressed are entitled 10 q re-
/ cOVery. irrespective Of remote con
/ tinEenCies- the banking and invest
I ment element still gave cOnSidera-
/ ton 70 the various factors Of
/ slow development, such as harvest
and - political uncertainties, the
autumn money market. and all the
/ other unsoIved problems Of the fU-
f, ture. including the recent railway
( LEGISLATION, and the part which the
I Interstate Commerce Con mission
must play from now on in az proving
or disappearing freiSht-rate SEIZED
ules. permitting advances here, and
J ordering reductions there. as il may
determine best
Wall Street Perplexed-
/ The rank and file in the financial
district are clearly much perpleNed
lover the episodes Of the week. almost
las much so over the sudden cessation
LOT liquidation and recovery, as they
were over the source OF the heavy
selling movement and the reasons for
the violent declines. It is really q diff
tfCull matter 10 explain satisfactorily,
and since the Intrinsic position does
not appear 20 re very much changed
one way OF another from what II was
a week ago, by the developments OF
1.-THE interval. the disposition Of very
many shreEd observers Is 10 attribute
the break more TO influences within
In, market itself than to any actual
developments without the market
even such things a crop conditions
or the commanding position now occu-
pied by the Commerce Commission IN
iTcakiug and Ilmaking freight rates,
which was the really conspicuous de
,velOprlent of she week when one con
siders that within seven days the com
ITaissiOn has shown its manifold DOW
ers in the function OF railway rate
making in four different ways First.
lin suspending the communication rates
i'm New Jersey; second. in reducing
from s. 1-3 TO SO per cent In the inter-
mountain rate cases third. in advsuc-
ling rates on -four between Buffalo
and New York, and. fourth. In permit
ting certain advance schedules. enec-
( tive July I, 10 go into operation.
But to return to the market itself.
{ marie 20 detect any serious change in
I the great underlying situation the rank
\ and ME In Wall Street incline 10 The
2 the nuai liquidation Of some very i'm
/ DCrtant pOOl holdings. and that. in some
I way or other knowledge Of this frDpenG-
Z in@ POOL selling had leaked out among
+ large bear traders. VINO took advantages
fOt their opportunity to denreSs the
4 whole list, while CCnfning their prin-
I clDal efforts 10 q very limited group Of
z issues Many features Of the decline
/ and the recovery point 20 this as The
I proper solution of Wall Streets Dar-
picking market problem First OF al
4 IS the concentration Of selling upon very
Z Few ISSUES such as would TCint 10 large
/ pool holdings in few properties second,
4 the orderly manner in which the price
D declined sNCeDt for the brief two hours
I Of Thursday forenoon. Indicating selling
I by experienced hands third. the sus-
J pension Of LIQUIDATION as by a given sig
Z nal, inCI -atlnE 2 possible KnoWledce
l that the pools had ben bailed out and
I edge that no considerable volumes of
/ stock weTe hanging over the market
I awaiting further liquidation.
/ 4 Market Post Mortem.
/ OF course. the above is only a Wall
/ Street theory, but it ITS in neatly with
/ the course Of the market during the
: week. and another fec cure " EicE seems
/ TO add confirmation - that the moment
/ the heavy Liquidation gave signs Of hav-
/ inC run its course. several Of the IarE-
l est commission houses in the Street,
/ which fO- many months past have been
I credited IN rumOrs with handling ac-
counts for various pools. suddenly
{ chanSed their position in the market.
I and changed also the tone OF their
/ market advlcsS- Whereas. early in the
I week these firms were cautionins their
] miscellaneous customers against pur-
/ cilaSeS Of stock. probably knowing that
I lLQlucauon was impending. but basinE
Lhelr 20Flce on such matters as crop
/ damage the railway rate legislation,
I the autumn money market. the high cost
I OF labor ana commodities. the fall cleo
/ lions Jne industrial cases coming before
/ the Supreme Court. the expanded posi-
I ton Of the Western banks. a personal
I eNtravagance. the divergence Of funds