New-York tribune., 1911-12-09
FINANCIAL MARKET
Stocks Rally After Early Losses
MIR. VanderIip'S Views.

In the last hour of trading yesterday
occurred a recovery in stocks. mainly on
covering Of shorts. which brought final
prices TO 4 level only fractionally lower
than Thursdays close. and in some In
stances worked small net gains. Earlier
in the session there had been a general
decline, in line with the movement dur
ing this week. with intermittent and
brief rallies the Sharpest break coming
In the middle OF the afternoon. when the
low prices of the day were made. Union
Pacific United States Steel and Reading
yielding with the rest of the list. In the
late rally these three market leaders re-
covered from Is TO Ia points, Cleir net
losses not exceeding y point. The
money market tightness was again the
principal factor Of the decline, but
contributing cause was the article in
Tho OutloOk" by Frank A. Nanderip,
president Of the National City Bank, on
What's the Matter with Business
Mr. Vanderlip grants that the indica-
tions usually relied upon in making up
Judgment as TO business conditions are
fairly encouraging but he sees ahead the
most serious situation that has existed
within the observation of the present
business generation. with perhaps the
exception Of 1896. when the mainte
nance OF the gold standard was In doubt,
this forecast being based upon the pres
ant policy of enforcement of the Sher-
man law. which. he says. has caused
capital TO turn a deaf ear to all propo-
sitions involving business expansion.
There IS pretty general agreement in
this view. Mr.. Vanderlip says, but II is
not shared by tho weekly trade reviews,
which, in their issues published yester-
day. report a further Strengthening Of
business confidence and a further grad
uel Improvement in business. There
may be some among the Wall Street
community also who take a less pessi-
mistic view ahead than that of Mr.. Van
derlip, but it was recognized that his
opinions, although those OF an indi-
vidual, were very probably those also Of
the powerful financial group identified
with the institution of which he is the
head. and that, holding those beliefs
these capitalists would naturally be bears
IN the stock market If at the moment
having extensive commitments. So the
traders sold stocks on the interview.
The call money rate did not go above
4 per cent yesterday, but the figure Al
which most Of the loans were arranged
was little higher than on the preceding
day, while there was n further marked
hardening in the time money market as
high as per cent being asked for thirty
and sixty days use According To the
known movements OF money the banks
have this week lost about S4,5upHO.
Most Of the loss was on transactions
with the Sub-Treasury. An important
part Of II being due to the delayed call
Of the Controller Of the Currency. in
preparation Of which interior banks paid
dues 10 the government by drafts on
their correspondents here in favor of the
Sub -Tress sury. thus retaining their own
cash holdings In view of the stu un-
explained heavy loss Of cash appearing
in last weeks bank statement. predc-
;ions Of the complexion of to-day's state
ment sre more than usually difficult.
hut tho prevailing belief is that the
showing viii not he as poor As had heen
expected 2 day or two ago especially in
the actual statement.
The monthly report Of the Copper
Producers Association. showing a de
crease IN stocks of about 2S0DooO
pounds, was we'll received. and probably
was Of some influence in causing the
late rally. which, however was primarily
eXplainable from tho oversold condition
~ the market after an almost continu-
GUS decline os several days The cot
ton ginning report, showing the amount
of the staple ginned up Ia December ! as
representing new record by nearly two
million bales, led 10 heavy selling on the
Cotton Exchange. where the leading
futures dropped p TO - points. Tho
grain markets also were weak.