The Washington herald., 1911-02-10
WALL STREET NEWS
Market Gives Evidence of
Strength Despite Sales.
SUBJECTED TO SEVERE TEST
Nothing Has Occurred to Justify
Selling Except Desire to Turn Pa
Per Prollts Into Cash-Strength OF
Investment Market Ii IncfeasinE
the General Bank Loan Account.

New York. Feb. 9.-While it can still
be said to-day. as it has been throughout
the present week. that the stock market
was not as lively as it was previously.
Yet the action of the market was such
rs 10 give evidence as strongly as at any
time since the upward movement began
SIX weeks ago that nothing had happened
to shake the general foundations of this
higher valuation for securities in future
Indeed, the course of trading to-day
affords warrant for an even more en-
phatic statement 1t went far to discour-
age the hopes of merely speculative
trade1 and others that they might be
able to get back at materially lower
prices large lines of stocks which they
have liquidated in the last few days.
Put to Severe Test.
During this time the market has, in
fact, been subjected to a pretty severe
test Of its general stability. Very large
blocks of the Reading, Union Pacific,
United States Steel, and other leading
Stocks have been offered for sale, and
have been absorbed without break in
prices or causing at the utmost more
than slight recession. Were these hold
tated thereby would probable advance
quoted values very considerably
Meantime. it is becoming more and
more apparent that nothing has occurred
TO justify this selling of stocks except
the mere desire to turn paper profits
into caSn. That helpful and gratifying
movement toward readjustment in conf
modify prices still goes on. A great
speculation has for some time been in
progress in coffee. and quotations for that
commodity have been lifted to a fictitious
level; but in the course of the last week
and particularly to-day coffee has fallen
with violence to price more nearly
justified by demand and supply condi-
tionS. and has followed the lead in this
respect of cotton. tin. butter. eggs. rub
her. and a number of similar articles Of
produce and merchandise.
Decline in Grain Prices,
The initial movement in this regard
vas. OF course. the decline in grain
prices which began in the fall of last
year. and all this by reducing the cost
OF living by getting general trade down
from an unnatural to a natural level and
by releasing money from trade. specula-
tion for business uses works for the per-
Inanent advantase of security values.
fhe advantage will be more obvious
VI SouISe, idleF on than II is now. but
the stock market following its usual css-
tom is diScounting the fact Further
money conditions the world over are ia
VorinS the purchase even from a mod
erattIy speculative point of view of Sc
curltles whose prices were throughout
the latter half of last year at least de-
pressed to points unduly low
No doubt in our own country the
strength of the investment market and
the readiness with which new loans can
DE hoated upon good properties is in
creasing the general bank loan account
Tor the time being. that is to say, is lead
Ing bankers to lend money to bond syn
cic2t"S and others who are negotiating
for the purchase of new securities about
to he brought out.
Probably in due course this may create
a little moro firmnesS in the time money
market than was witnessed in January
and especially as current rates for the
use of funds are such as to actually in
duce foreign borrowing at this time from
ol:r bankers.