New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-15
FINANCIAL MARKET
Hard Day in Stocks for Operators
with Short Contracts.

IL ldLA NlldN NNdI Tb4uS III TIC f6i ~
stock market failed 70 bring out stocks
encouraged an active covering move
ment IN the subsequent dealings. g. re
fection Of which was presented in net
gains throughout the active list ar the
close Room traders however. We're not
bulnsh. arguing that with the compile
ton of buying in by the shorts the de
cline would be resumed. There is moth
ing IN the technical position Of the mar
ket or IN conditions outside Wall Street
that warrants liquidation. but the cur
rent unwilling ness Of the public 70 buy
stocks on speculative account and the
apparent willingness Of the larger f1nan-
cial interests 10 give the professional
for hanging purposes may result IN fur
Their losses. Actual American investors
are adding 10 their holdings. while for
eign capital IS taking advantage OF cur
rent attractive prices 10 secure, both for
speculative and investment account the
issues Of our high grade railroad and
Industrial corporations Arbitrase
houses have been active buyers in re-
cent days. and IN yesterdays market
inward Of 10000 shares were taken for
European account Amsterdam. which
always buys American securities in de-
clning markets. being an important
factor in the dealings General news
reports were favorable. The grain mar
l. Of n
vices that spring wheat was thrashing
out better than expected and that the
corn crop would make much better
final showing than indicated by the gov
ernment's figures Of August !.
If conditions in the corn belt improve
until the gathering Of the harvest the
way they did q year ago the crop "
1911 will be the third largest in the his
tory Of the country. Union Pacific.
which has been heavily oversold, is at
tracing a good investment demand, as
the WELD on the issue at prevailing quo
tations is more than > per cent, while
there is also excellent buying IN Read
Ing. Southern Pacific. the Hill shares
GIO T. ulleQ ELdLtS oIEfA NO4A4AAAbAAs AAD
Steel Corporation win survive political
attacks. and from current indications
there is no possibility Of a reduction in
the dividend on its common stock.
United States steel preferred continues
10 20 into investors boxes. At its pres
ent price the latter issue returns lit
tie more than per cent. This column
has been predicting something in the
nature Of a squeezing Of the shorts. II
came in the last hour yesterday, when
Union Pacific sold almost . points above
its early low price; United States Steel
common more than . points above the
low: Reading 8 points, and other active
stocks from ! to points 1t was bad
day for the silly spectators who in the
last few days, after a fifteen-day de-
cline. sold stocks short. Wall Street
has been selling stocks on the theory
that declining prices would induce In
vestment liquidation. Most investors
have common sense.
In the last two weeks the Clearing
House banks have reduced their loans
bv more than $47OO0.O00, and as a con
sequence Of this operation their posi-
tion has been materially improved.
I.iauidation in loans reflects in part sell
ing Of securities by out-of-town banks
and sales by local pools and individual
traders on the Stock Exchange. and IN
view Of the fact that IN the last year
the loan item Of the New York institu-
tions has been increased 10 q trench
dous extent the present declining ten
dency in obligations Of this sort is a
most satisfactory development, espe-
ciaIlv at this time when preparations
must be made for financing the require
meuts incident 10 the gathering ana
marketing OF the crops. Bank state
ment figures for the last week showed
an actual reserve above the - PEI cent
limit Of upward of S27. 100000. With
reserve Of this amount and with the
countrv's balance of trade with foreign
nations larger than II has been at this
time in many years which insures m
ports Of gold In the autumn. New YORK
should experience no difficulty IN han
ding forthcoming demands from the III
terror Inquiries for time money have
slackened mp as q result of the recent
liquidation in the market, doubtless On