New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-12
FINANCIAL MARKET
Investment Holdings of Securl'
ties Are NOT Disturbed by
Speculative Liquidation.


maximum declines in yesterdays active
trading. while net changes In the larger
number Of prominent issues showed
small gains, Improvement before the
close being based on covering OF snort
contracts rather than on buying for long
account by the public or regular Stock
Exchange interests. There was con-
spicuous absence throughout the day or
aggressive support. Prices declined cas-
ily and traders were so we'll pleased Win
the course Of quotations and evidence or
actual liquidation Of speculative accounts
that had been weakened by the almost
continuous decline Of recent weeks that
thew made enthusiastic predictions OF
further extensive depreciation In market
values. notwithstanding the fact that
money and business conditions presented
no reason for investment sales of securi-
ties. Selling represented liquidation by
sneculative holders and operations by
professional traders on the short side OF
tbe market Investors were not factors
IN the DAYS transactions. but experienced
bankers thought that It would be only
matter Of time when investment capital
would be attracted to Stock Exchange
offerings. even in the remote event or
lower dividends by certain railroad com
panies.
Az the moment there is little in the
general situation that warrants the idea
that the railroad companies will be COM
nA,;ed to reduce payments to stockhold-
org hnt In view Of the evident unwilling
mass Of the larger financial interests TO
engage in new enterprises at this time
and the various perplexing uncertainties
in the current outlook 1t is not surprls-
ing that people who for many weeks
have been making money on the short
.tda of snecuIation are working overtime
10 create an impression that concltohs
are moving along lines that must surely
end In the bankruptcy Of our industries
General conditions are not so satisfac-
tory as we would like to be able 10 re-
mort but there is no legitimate reason IN
the position Of affairs outside or wall
Street that should worry the real owners
of American securities. And the aralrs
outside Of Wall Street determine the
actuaI value Of our investment Issues.
BUSINESS is not booming. but trace IS
being conducted on a conservative OASIS
and. measured by bank clearings and
railroad earnings. It is much heavier
than was reported at this time year
ago.
II cannot be gainsaid, however, that
nolitical uncertainties. the approach or
Presidential year. the readjustment OF
the affairs Of Industrial corporations 10
conform n the Sherman antitrust law
the erroneous idea IN wall Street that
the enlarged power Of the Interstate
Commerce Commission will not eventu-
aIv benefit the railroads and the VIII
ingness Of large financial interests 70 ley
enocuIative bull accounts go by the board
have sunplIed a powerful lever for the
professional operators, to whom every
noint decline IN prices OF stocks means
big profits Regarding the business slt-
nation Il Is worth noting that In the last
few DAVIS $4,000 persons engaged In the
textile business in New England have re-
e,roed work after long period of idle
pess due 10 curtailment Of operations st
the mills while II is also worth record
tre the fact that with the exception ot
the holidays I'm the earlier part or the
present month there has been no railing
of in the volume, Of orders received by
the United states steel Corporation since
September 1, as compared with the aver
age daily orders i'm August.
The heavy losses that were recorded In
the second hour Of trading were accom-
panied by a rumor that the French Am
bassador had been recalled from Berlin
and that a strike would be called on
the Union Pacific Railroad inside OF
twenty-four hours. il IL an easy matter
to circulate rumors, and at the present
time. when the Street is nervous and ap-
prehensive. almost any rumor no matter
how farfetched, affects the course or
business on the Stock Exchange. The
French Ambassador TO the German court
has not been recalled and talk of strike
on the Union Pacific ~ premature. The
West was heavy seller of speculative
holdings, according TO the bears. but
there was no visible evidence OF impor-
tant Humiliation for Western account, a.