New-York tribune., 1910-08-30
FINANCIAL MARKET
Offering of Cotton Bills Helps to
Depress Sterling Rates.

On 4 light volume of business stock
market prices moved toward a higher
level Yesterday. with the chief strength
in Union Pacific, Southern Paclhc,
Tinted States Steel and Reading, which
supplied the larger part of the total
oDeratiors The upward movement failed
10 attract an outside demand. and as a
rule transactions were for the account
of the trading element, which appeared
10 find in general conditions, including
the technical position of the market,
reason for covering short contracts
which became somewhat extended in last
weeks speculation. The advance IN cot
ton. which carried the August option 10
90 cents a pound. the highest price since
1872. attracted more attention IN the
financial community than the course OF
stocks. especially in houses where pre-
diC+ions have been persistently made
that the quotation for the staple would
sell at the level named in the course of
the current year. The strength in Al
gust cotton had little important effect
1Ipon the new month options and repre-
sented nothing beyond the elimination
Of the bull speculation that was started
bv powerful interests in the cotton mar
ket a year ago-a speculation probably
more successful than any ever before
conducted upon the Cotton Exchange. In
Civil War times cotton sold as high
81 90 a pound. but exclusive of that
period there have been only ten years
since 1880 when the price has touched
the 2O-cent level. The lowest price ever
recorded was cents. in 1915. Cotton
bills were freely offered in the foreign
exchange market yesterday. which. with
an absence of demand in connection with
the London settlement, resulted in a
substantial decline in sterling rates.
Seventy per cent Of the total dealings
in stocks was supplied by Union Pacific,
United States Steel and Reading. Deal
ings in bonds were extremely light An
active borrowing demand for stocks is
reported.
In last weeks trading on the Stock
Exchange sales showed a falling off in
the total Of 3,540,12S shares as COM
pared with the same week a year ago.
and a decline to the par value Of S16.-
761. 500 in state and railroad bonds.
Current indications do not hold out the
hope Of any material expansion in deal
ings in the immediate future, in spite
of more favorable business conditions
and easy rates for money, while 1t is
not improbable that before sustained
operations for higher prices develop the
general list viii seek q lower level,
- oh c+n ar r>a 80
intrenched in the hands Of the most
powerful Wall Street financial interests
it does not appear likely that enough
liquidation will take place to bring about
disturbance in the market. With the
elimination Of the various uncertainties
II the present situation there should be
a better demand for attractive securi-
ties, especially in the market for railway
mortgage issues, which at prevailing
quotations are well worth the attention
of people who have idle funds on hand
The total sales of bonds last week ap-
preached a low record for recent years
and furnished striking evidence of the
unusual lack Of investment demand,
while the same thing may be said Of the
operations in stocks, which reached the
insignificant amount Of 2,201 ,62T shares,
representing in large part the trading Of
an unimportant professional element
which found little incentive to make ex-
tended commitments on either side of the
account. Wall Street apparently is
afraid to go ahead until it is able to
form a more definite conclusion regard
ing the outcome of the crops. the fall
elections. the railroad rate controversy
and the course Of money in the rest of
the year Western houses are not active
in the local market. Returning travel
lers tell Of growing confidence abroad
in our securities, but there is no indiCa-
tion in the course of the investment mar
ket that this confidence has vet attract
ed European demand.