The Washington times., 1911-10-01

| IaratlOn OF war Dy' ltaly dSdlHsl III
key, and some unsettlement of the for
eign markets, prices developed further
strength on the New York exchange,
and the market closed strong. Whether
Wall Street has placed proper esti-
mate upon its war news remains some
what in doubt, for, while 1t would seem
on the. surface as II Turkey. being un-
able to transport troops to Tripoli and
having no navy worthy Of the name,
could make but a feeble resistance, the
possibility of other nations being
drawn into the controversy, or the full
effects of the outbreak on the European
money markets does not appear to be
definitely settled.
The strain on credit in particular has
been very acute in Berlin and Paris
during the week, as is indicated by both
markets having bid as high as 62 per
cent for money in New York. by yes
terday's shipment OF sl,50O,o00 gold to
| France, though exchange rates had
pointed toward relaxation, and finally
by the sudden advance of the Bank Of
Amsterdam discount rate from to 1
per cent.
| Whatever the outcome of the foreign
struggle. 1t must be admitted that the
New York stock market displayed
| strong resistance to unfavorable news
both on Friday and yesterday; in fact,
| throughout the entire week, in view Of
the turmoil in a few isues, the market
showed an undertone of strength. That
this was due in large measure to an
oversold condition does not admit Of
denial However, neither the reported
I fha settlement
unrest of Europe, the acute credit situa-
ton in Paris and Berlin, nor the final
announcement of a strike on the Harri-
man lines seriously disturbed the tide
of recovery, which, setting in on
Wednesday, continued to the close OF
| yesterdays session.
| Although, as already stated, the mar
ket may not, as yet, have fully meas
ured the influence of the Turco-ltalian
war, it is interesting to note that thus
far that event has exerted less innu-
ence than, on some recent occasions,
has been brought about by mere idle
| rumors.
| A Disorderly Market.
| Entirely aside from anything that
| NAV develop from the outbreak Of hos
tiIities between Italy and Turkey, which
was the chief development of the week.
the interval will be long remembered
for the disorderly stock market perfor-
mances. Men whose Wall Street mem-
or.es go back for a generation can re-
| call put few instances of so wild an
| opering as that Of Wednesday, when,
| under simply enormous transactions,
first prices ranged from 10 points
above the preceding day close: "ACV9
| 1f nj common
were quoted wide" at maximum
figure Of %, or 51s points above Tues
days final price.
There was something of this kind in
the crazy days just before the panic
and corner in Northern Pacific in May.
1901, and again in August, 1906 when the
dividend on Union Pacific was Jumped
| from to 10 per cent over night ana
the bear party was led to slaughter:
Neither Of these former Convulsions did
the stock market any particular good'
| and recalling this there are many per
sons in the financial district who doubt
Il. in the long run. the episode OF the
| week will prove of lasting beneflt-
1t has certainly resulted in a very de-
| cided recovery in prices, but il Is quite
apparent that this Improvement is al
most wholly the result of short cover
ing Unless supported by outside buy
! ing, which has not as yet developed to
| any extent, II is feared the higher level
will invite renewed bear attacks.
Shifting A Position.
1t is quite true that preceding
Wednesdays demonstration there was
| IN active and extensive covering move
ment upon the part If numerous inpor-
tant professional operators. Some of
| these men now are working for higher
| prices and are proclaiming bullish senti-
| mcnts, but their efforts and their opin-
| ions are regarded more in the light of
| temporary shift IN their speculative
position Than as a foreshadowing of an
| impending change in cond tions. With
| the rank and file the present attitude of
| this particular group is Viewei with
suspicion. Up to Monday they were
proclaiming their bearish sentiments
mlsm upon political unsettlement, tariff
| revision, the proximity of the Congress
sional session and numerous other fca-
| lures, which remain unchanged by any
| development of the week.
| OF course it is possible that the big
BEARS" who are credited with having
| made a great killing" in the market,
| first on the short side and later by
trimming up their former associates
on the recovery of the week, have ex-
perienced a definite change Of heart.
| The majority of persons, however, do
| not believe this to be the case, and
they show very little disposition to fol-
| low such leaders. In fact. there Is a
|
| ter in some quarters, for II is unques-
| tionably true that the persons chiefly
| responsible for the report that a hill
| of complaint had been drawn by the
| Government against the Steel Corpora
| ton, and who are credited with having
| made the biggest winnings on the short
| side of that stock, together with the
most openly bearish important house
| in the Street, were the first to cover
| up, and are now loudest in proclaiming
| bullish sentiments.
Highly Professional Market.
Naturally, one recalls the old saying
that 1t is only fooi who won't change
his mind, but an incident like the above
leaves u bad taste in the mouth, and it
seems to direct attention to the highly
| professional character of the Stock Ex-
| change business at the present time.
| In fact, professionalism stuck out all
| over the transactions of the week. For
| instance, in the five full business days,
| whether stocks advanced or declined,
| there was no general distribution of
| trading. despite huge dealings. AS an
Pacific, and Steel common contributed
| 927, 900 shares toward a total of 1,449,000
or 64.6 per cent; on Tuesday, 77S,0 900 out
| Of 1,075,64 shares, or 72.3 per cent; on
| Wednesday, 1,206,S00 out of 1,726, $50
shares, or 70 per cent; on Thursday,
| l,017, 100 out of 1,345, ,30S shares, or 75.6 per
| cent, and on Friday. 590,5O0 out of 797,-
S55 shares, or "a per cent. -