New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-05
FINANCIAL MARKET
Field Day for Bear Traders on
Stock Exchange.

The fact that transactions In yester-
days stock market increased rapidly
with the appearance Of selling pressure
encouraged the natural theory in specu-
lative quarters that other causes than
professional hammering Of prices were
at work to bring about a lower level Of
quotations. Uncertainty over the out
come Of the plans OF the American To-
bacco Company and the Standard OIL
Company for reorganization to conform
10 the recent decree OF the Supreme
Court against them. the idea that large
interests connected with the two COM
panies are selling securities and the
mosquito-like activity Of Congressional
Investigating committees doubtless haze
frightened small holders into liQuida-
ton, but 1t is not likely that conserva-
tive investors Will be silly enough TO
sacrifice their holdings on the theory
that disturbance Will develop because Of
factors that can have no Ill effect upon
intrinsic values. 1t is quite probable
that some Of the larger speculative in
terests have taken advantage of pres
snt uncertainties to drive stock prices
down for the purposes Of accumulation
at more attractive buying levels, while
1t is evident that the bearish room
traders are exercising all their talents TO
create a feeling Of alarm on the part Of
commission house operators whose mar
gins and means are not large enough to
carry speculative accounts through a
period OF sharp declines.
Many stop loss orders were caught
yesterday. Banking interests appar-
entity were not concerned over the fate
Of spectators who were forced TO sell or
were alarmed over the outlook for the
corporations that have violated the Sher-
man law, as they offered little support
although quietly buying On scale down
in all the prominent issues. Houses that
sold stocks at the best prices of the year
were fair buyers throughout the day.
especially in United States Steel. Union
Pacific. Reading, Brooklyn Rapid Tran
sit, st. Paul. the Hill issues and Amerl-
can Smelling. Large loans, in which
such stocks as Steel figured, were called
in the day, which. Of course, accounted
for some Of the selling. The Street had
all sorts of disturbing rumors, but the
general situation outside the Stock Ex-
change presented no reason for the
weakness recorded, especially the ex-
treme weakness in the afternoon, when
selling pressure was heavy. mainly as
consequence of exhaustion OF margins
and active sales for short account
Prices are well under the high points
made last month, and experienced
traders believe a rally soon will develop.
Net losses ran from | to more than o
points in the active issues Wheat and
cotton prices were strong, factor that
helped along the decline in stocks.
According 10 the known movement OF
money In the week the local banks nave
lost upward of S1,O0O.OOO in cash hold
ings. While the local institutions gained
on their operations with the interior they
lost heavily TO the SubTreasury, owing
IN large part to Withdrawals Of gold for
Canadian account and TO payments for
obligations due the government by out
of-town interests, who settled their GUS
toms and internal revenue debts by
drafts to the Assistant Treasurer OF the
United States at this centre on New
York balances. This operation pracu-
cally IS equivalent to shipments Of funds
10 the interior Receipts Of currency
showed a falling off, while the general
course of money indicated that the tide
is turning against New York. Early
harvests are looked for. and as conse-
ouence the outward movement Of funds
from here IS expected TO be heavy In
volume much sooner than ordinarily re-
ported. Exaggerated crop damage re-
ports are being received, and stock mar
ket bears and wheat market bulls are
predicting a period Of famine. The
chances are. however, there will be
enough gram 10 60 around and plenty TO
spare for export. In the current week
exports Of wheat have amounted to
1921 sos bushels. against 2,5142O4 bush
els last week and 1,275,730 bushels in
the same time last year. For the five
weeks ended August exports of wheat
have been 1O660,975 bushels, compared
With 6 1923. 743 bushels in the correspond
ing period In 1910. Corn exports in the
same time have been S01S,SOS bushels
against 1717.625 bushels a year ago.