The evening times., 1911-08-07
THE FINANCIAL
TRADE REVIEW
Marked Reaction Was Shown
by the Securities Market
Last Week

New York, Aug. marked reac-
tion was shown by the securities
market last week, prices receding
from five to ten points or more in a
number of activet issues. The extent
of the pressure gave rise to the be-
lief that some occult causes were at
work beyond the obvious factors in
business, industry and agriculture.
1t was assumed, for one thing, that
speculative over-extension was in
course of correction, both in stocks
and commodities. Some of the SELL
ing was ascribed to cotton market
sources, and the violent rebound in
the price of that commodity later
suggested the relief secured for that
market.
Another source of financial pres
sure was the policy of the Paris
money market to strengthen its re-
serves by calling home foreign
credits. This policy has been in force
toward the German money market
ever since the Moroccan question be-
came acute. The effect was said to
have extended to the New York mark
ct last week in the form of calls on
a speculative group which borrowed
money in Paris.
Government policy toward corpora
tions was cited as an influence on the
stock market. The heavy fall in quo
tations for Standard Oil and American
Tobacco shares attracted fresh atten-
tion to the consequences of the en-
forcement of the antitrust laws.
Steps which have been taken by these
corporations toward compliance with
the supreme court ruling against
them threw the minority into much
confusion Of mind as to their posi-
ton under the proposed plans. Tho
condition in which these corporations
find themselves is taken to point the
way to results in other cases. The
activity of various government de-
partments toward affairs of corpora
tions keeps alive expectation of these
results. The question of the stand
ing of the National City company and
its holdings of shares in other banks
has brought the leading financial in
stftutions of the country into the
scope OF this influence.
Reports of railroad earnings for
June brought under review railroad
results for the six months and the
fiscal year. The results prove to be
irregular, as shown in the returns
even of roads In the same field. An
increase in gross earnings for the
year by Atchison. with a good part of
the increase conserved is net, con-
trasts with heavy falling of in gross
and is aggravated in the net increas-
es of the Hartman lines. New York
Central, for six months lost but q
small proportion in gross, but reduc-
es net by additional operating cost
while Pennsylvania severe contrac.
ton In gross is modified In the net
by cutting down cost to the extent ot
half the gross increase. Railroad Of
ficials speak in tones OF conservative
lhopefulness Of the future.
The crop prospect continues dom.
inant factor on estimates of values
The government report on cotton am.
ply confirmed the feelings Of conf.
dence regarding that crop. Wheat
and corn were affected by persistent
reports Of damage in the northwes,
and by insufficient moisture for corn
Trade and Industrial reports were
l"spotty." Advices Of mill resumption
In New England were mixed with
those of further ,curtailment there
and In the south. Increased sales
and, growing mill, activity are report.
ed In steel, but their influence last
week was qualified BY . yielding ten
! dency tn prices OF some grades.