New-York tribune., 1910-08-23
FINANCIAL MARKET
london Taking Profits on Stocks
Bouqht at Lower Prices.


lower level throughout the five hours Of
trading, maximum losses in the promi-
nent issues running from l to more than
. points. with net declines almost as
heavy Absence Of commission house
buying, the unwiIlingness OF the larger
Wall Street interests to encourage bull
operations al this time, further strength
in sterling exchange, liquidation by for
eiru houses and the well founded re-
port that banking houses were seeking
an outlet Tor their surplus funds IN the
commercial paper and general outside
loan market rather than in Stock EX-
change offerings encouraged an aggres-
sive hear attitude on the part Of the
floor room element, especially against
the metal shares, Reading, St Paul and
the Hartman securities. Bear press
IRE however. failed 10 attract sales
from substantial sources, either for
specugative OF investment account,
While there is nothing IN conditions
governing the intrinsic value Of rail
road stocks and bonds that warrants
lower prices. the mere fact that in the
big advance in recent weeks from the
low prices made in July . heavy short
interest was covered and many stocks
bought At cheap figures TO prevent de-
mora lizati5n IN the market were dis
--ibl.red furnishes sufficient reason for
professional selling III the current deal
ings. which are not accompanied by q
r,1lblic demand for securities
Stocks are not dear. judged by earn
ings and dividends, but for market rea-
sons the professional element il Wall
Street Is extremely doubtful over the
ability OF our railroad and industrial
corporations TO maintain their present
earning power. There Is no good reason
vlv investors should pay the slightest
attention 10 present pessimistic talk in
the speculative community. one Of our
most prominent railroad presidents said
yesterday There is no such thing as
retrogression in this country. Its af-
fai-s-tfat is, It's financial, commercial
and farming interests-are on too solid
foundation 10 permit Of any stampede.
The outlook in my opinion, is eXcep-
tionaIIv good, and reports from all parts
Of the country bear me out IN this state
ment.r Current changes in stock mar
ket prices are based chiefly on traders
whins and technical speculative condi-
tions. The close was weak, q sharp
decline in the Wabash issues being a
feature Of the late dealings. Brooklyn
Rapid Transit pays . per cent on its
stock. It's annual report received yes
terday showed 5.S per cent earned. It
is quite evident that the margin Of
earnings above D per cent is too small
to warrant that rate. The stock was
not helped by the report.
The general changes IN last weeks
bank statement indicate q growing de-
rnand from the West and South for
currency here. and the movement Of
interior exchange on New York suggests
tLat shipments OF money from here soon
will amount to substantial weekly totals
Both domestic and foreign exchange are
moving against this centre Demand
sterling is more than 20 points above
the low level recorded in July, and al
though grain and cotton bills may be
counted upon 10 appear III AaiL foAHiAi0
in the autumn months there is little
chance Of a drop in exchange rates 10
. level that would permit Of gold i'm
ports from Europe, as this country en-
ters the fall season with no trade bal
ance while its fixed obligations abroad
are as large as. If not larger than. ever
before. At the present time London IS
selling more American stocks than II is
buying. operators IN the British capital
taking advantage OF the current price
levels 10 realize profits on securities
bought at the low points in last month $
deuressed market. Moreover at the mo-
mcnt there appears 10 be no indication
that Europe Will make heavy invest
ments IL our mortgage issues in the near
future. In view Of the facts enumerated
the wisdom OF our banks in building up
large reserves is apparent. The actual
reserve above legal requirements is In
excess OF S5000DUo0. a total seldom
eauaIed at this period of the year. and
10 actual stringency in money is there
fore l.oked for by local bankers.