New-York tribune., 1911-09-26
BANK STOCKS ON STOCK EXCHANGE.
FINANCIAL MARKET
Industrial Shares in Better De-
mand After Heavy Liquidation.

Weakness IN the industrial stocks in
Yesterdays early stock market was re-
sponsible for liquidation in the railroad
shares by holders Of the latter who felt
compelled to raise cash 70 protect their
speculative commitments in United
states Steel, American Smelling, Anal
gamated Copper and other issues Of this
class. Maximum losses were heavy in
all parts Of the list, but in the late af-
ternoon the whole market rallied TO an
extent that showed recoveries averaging
2 points from the low Of the morning
among the prominent securities. Heavy
liquidation was reported in Union Pa
cifc, and at one time the stock was
quoted in the neighborhood OF 8 points
under the closing IN Saturdays market,
its final price, however, being more than
8 points above its lowest, while among
the other early weak features American
Smelling showed a gain from It's low Of
31s, Amalgamated Copper IN United
States Steel Az, Northern Pacific 2a
and Southern Pacific 9 The Street had
no good theory Of the source Of the early
selling beyond that already noted.
A large line OF stock was liquidated In
the course Of the day. doubtless for the
account of crippled holders, but brokers
naturally were unwilling to give the
names Of the sellers. Shorts were active
buyers in the late dealings, while on the
forenoon decline substantial interests
appeared TO be accommodating all the high
grade securities thrown upon the mar
ket. The American Tobacco issues were
strong on the announcement that the
plan for the reorganization Of the com
panv along the lines Of the Supreme
Courts decision in the recent suit Of the
government against the company had
been completed, the preferred stock clos
ing AT a net gain Of ! point and the 6
per cent bonds at gain Of 3ss The
United states Steel issues also showed
decided Improvement before the close,
while the entire list reflected more op-
tirnistic feeling in speculative and in
vestuen- quarters over the outcome Of
the present corporation situation in its
relation 10 the Sherman law. The early
decline IN prices. according 10 the opinion
oT many careful observers brought the
general market a long way toward the
level at which capital VIII extend itself
on the basis Of intrinsic value. The clos
ing presented q big list Of net declines,
but the losses were insignificant in com
parison TO the severe declines that were
recorded earlier IN the day.
The local money market presents an
unusually low level Of loan rates for this
period Of the year. but in view Of cur
rent conditions the inactivity OF money
is rot at all surprising. The banks are
IN a strong position, our banking houses
are financially sound and our corpora
tiors will survive attacks upon them AM
the readjustment Of their affairs so as
10 conform 70 the conservative interpre-
tation Of the Sherman antitrust law by
the Supreme Court Money ultimately
will move into investment and trade
channels in volume. and the fact that
financial institutions now have surplus
funds on hand should not be taken as an
indication that money intends 10 pass
out Of circulation. Our idle FUNDS Will
find active employment later on. II Is
worth noting that while the local de-
mand for accommodation is light our
bankers are lenders in the foreign mar
kets. that our balance OF trade with
other nations is increasing. and that
European investors arc not selling their
holdings Of prime American securities,
despite bear talk 20 the contrary. The
practical settlement OF the Moroccan
trouble ought soon 10 be reflected in
more stable financial conditions abroad.
which naturally Will exert q stimulating
influence upon the markets here.