New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-21
FINANCIAL MARKET
Stocks More Strongly Intrenched
in the Hands of Big Finan-
CiaI Interests.

sold an enormous amount Of long stock
in the last two weeks. and substantial
financial banking interests have been the
chief buyers. The present outstanding
short interest is heavy. and the fact that
when the leading railway issues are
quoted at from 3 to 20 points under the
high figures Of the year, recorded In
July, suggests that when the big men
find conditions ripe for an advance the
upward movement will play havoc with
the enthusiastic operators who at the
moment are espousing the bear side Of
speculation. Every decline brings prices
nearer the point at which capital will
move into the market and, according to
the opinion Of many careful observers
further material losses In Stock Ex-
change quotations will attract heavy
supplies OF investment money which Is
now being held for the attractive oppor-
tunities which a period Of liquidation
offers. Even assuming that the bear
market will run on for some time to
come. the decline recorded In recent days
ought. according to precedent, mark the
limit 20 which a downward movement is
permitted 10 go without rally Of
substantial proportions. The present
technical position OF speculation is
strong, and II the banking interests in
Wall Street make up their minds to
squeeze the shorts the operation will be
accompanied by acute d sturbance in the
camp Of the manipulators who have been
exercising ali their perverted talents to
destroy confidence in investment circles.
AS far "a can be learned. the liquida-
ton of recent weeks has been almost
entirely for speculative account. Many
weak bull pools and individual long
holders have been forced TO throw their
been no investment selling outside Of
sales by people who have sacrificed their
securities in order TO raise enough cash
TO protect speculative commitments. The
bears have fostered the idea that sub
stantial capitalists have been selling.
clining market On the contrary they
add TO their holdings. either with inten-
ton Of increasing their permanent in
Vestlnent account or else with the inten-
ton Of selling at the higher prices that
all bear markets breed. The ordinary
trader appears TO be convinced that the
market has entered period Of prolonged
decline, but this theory should not upset
investors and should not lead to invest
ment selling of sgocks which eventually,
no matter what the market may do in
the immediate future. will be quoted at
prices we'll above those now prevailing.
There Is enough in the political situation
10 encourage caution at the moment in
! speculative operations for higher figures,
but there is nothing in underlying con-
] ditions that warrants apprehension on
I the part Of the real owners OF American
| investment securities over the future in
trinsic worth Of their holdings. Under
/ lying conditions affecting money and
| business are sound.
| Uneasiness over the prolonged session
| Of Congress. the labor trouble in Eng
/ land unfounded rumors regarding the
Union Pacific Railroad, expectation in
| speculative circles here Of labor disturb
/ ances in this country which are not war
ranted by known conditions, uncertainty
over the outcome Of reorganization Of
/ corporations to conform to the Sherman
antitrust law and irregular movements
/ in our industries may be good enough
/ reasons for bear activity in the stock
market, but they are not arguments for
/ the sale Of stocks held for investment.
I The rumors regarding the Union Pacific
have been officially denied, and il would
| be a most encouraging sign Of willing
| ness on the part Of the Stock Exchange
authorities 10 protect the public If they
would make an effort 10 ind out and
punish the authors Of such runlors. The
Stock Exchange may consider itself a
private club, but nevertheless it is an
institution that invites the public 70
share in its operations, and il therefore
should do something TO protect the pub
I lie against the gross manipulation IL per
mits its members to indulge in. Manip-
ulators who ply their trade on the Stock
Exchange have been working overtime
10 weaken confidence in American Sc
curities especially in Union Pacific is
sues The president Of the Union Pacific
company publicly announced last week
that I'm view Of the baseless attacks upon
the stock Of the company he considered
II due the stockholders 10 state that not
an item Of truth was contained In the
reports put forth alleging dissensions in
the board Of directors, reduction in the
dividend or liquidation by the Hartman
interests When Wall Street operators
inaugurate a campaign to disturb in
vestors it is high time for the respecta-
| bic element in the Street 70 take meas
ures to root out the undesrab BILE mem
bers OF the speculative fraternity.
/ Monetary conditions in this country
are absolutely sound, and the present
position OF the money market does not
/ indicate any disturbance in the autumn
/ incident to the demand for funds for the
financing of the crops. 1t is worth not
/ ing that crop conditions have improved
since the first OF the month and that
Western grain men believe the yield or
wheat and corn viii be much larger than
| indicated In the last government report
while il is quite certain that the cotton
/ harvest viii be the largest on record.