Evening star., 1912-11-03
STREET IS NERVOUS
Conditions Here and Abroad
Somewhat Upset Market.
TRADING ON LARGE SCALE
Active Speculation Spirit During
Week, But Progress Lacks.
SALES RESULT IN DECLINE
Closing Out Of American Securities
on Foreign Exchanges Re-
fected in Prices Here.
TRADING ON LARGE SCALE
SALES RESULT IN DECLINE
BY w. g. NICHOLAS.

| NEW YORK, November 2.-The stock
| market has had a worrying week. Be-
tween continued selling of American
| stocks by frightened Europeans on the
one hand and an outburst of political
nervousness at home, prices yielded and
| bullish sentiment became enfeebled. The
loss in prices was not severe, but the
| only enthusiasm on the bull side that
| could be reused was when the market
became oversold in spots, giving the pro-
fessional traders q chance to make a turn
| by frightening the overso.d bears into
| covering their shorts. Trading was ON a
large scale, a fact which goes to show
/, the existence of an active speculative
| spirit, yet nobody seemed to get any
! where Real controlling sentiment SEEM
ed to be in q state Of confus on, or
| rather Of uncertainty as to the immed,a
future. None Of the important people in
the street has doubts as to the ut mate
outcome, but the immediate foreground
Is not entirely clear. The situation is be-
| logged Many of the strongest and mCSt
powerful bulls in the street are holding
back. lacy are openly discouragins a.
gressive action for a market upturn.
They think this one Of the times wnen
the safest play is not to play at ALTO
get up on the observation tower and wait.
To sur face observation the market has
been nervously weak most of the time
of late, and the speculation has been -
, to the duration of uncertainty. Funda-
mental cOnd tions are recognized as De-
ing superb strong, but just for the mo-
ment traders are lacked with feelin5
t.at the situation may have dynamite
concealed somewhere about 1t ready to
explode on slightest prOvocation. The
Americans have settled the Balkan war
blitnely and easily, but for some reason
that is not clear to us mere at nome
Europeans pc. sist N looking at the mat
ter from different viewpoint. L1quida,
ton of American securities held abroad
was resumed this week, ter 1t had been
decided that they had so al they want
ed to and were taking back some of the
securities they had parted with under
panic Influences. There seems to nave
been mistake about It's.
Tie international banking houses reluc-
tant confess that they are selling
g. eat many more stocks for account of
their foreign clients than they are buy
ing and that there is no let-up. Estimates
as to the extent of this foreign liqaida-
ton run as high as 1000 GOO ares. Ex-
pressed at par valuation tn S would mean
&1O0, OOO.O .OCO. which is a good deal of money
for American banks to raise when they
are pressed in other directions about to
the limit of their resources. The flow
of currency west and south Is at flood
tide and 1t will be month or six
weeks De ore IL Stops anu lui lis / Z OlHcI
way. Legitimate business cont nues to
make heavy demands upon bantlln7 re-
sources all over the country and although
the banks are getting high interest
there is a limit to their resources.
Suffer Slow Decline.
Stocks of the standard class having an
international market have suffered a
slow dragging decline-not SO large by
actual tape measurement. but impressive.
Traders know where the stock comes
from. but very few of them are blessed
with aggressive market management at
the moment Thus, while the record
shows reaction from the high prices of
the beginning of last month of to
II points in the spe ative tavo.ites. the
standard issues Eave also declined rela-
lively almost as much-a very unusual
procedure. Reading lost II poin-s, Cop
per, H. Smelters, 10: Lehigh Valley, Ii;
Union Pacific 8A while New York Gen.
trail Baltim ore and Ohio, Northern Pacific,
Great Northern. st. Paul and Chesapeake
and Ohio sl;pp. back to points. St. sel
quoted at the beginning of OCTOBER, not
very serious setback when the fact is
taken into account that hundreds uion
hundreds of thousands of rea. stOc IS
were dumped on the market from ins de
and outside sources. This immense vo-
ume Of stuff was absorbed in wonderful
manner The street is puzzling itself
where the goods went to. Tnere seems 10
be no Unit to the buying power, which
is not feazed by offerings howe yer large.
PENNSYLVANIA only sold down ? Z points
from the top price of the year, whcl was
made last May. There are now $50 O
stockholders in this company and the
mass is not easily moved by ofd nary
slumped back % points from the high
figure Of 2S3, reached August 10 last.
This mammoth corpo aticn as been SOW
Ing the seeds of bitter hostility through
our the Dominion a d Is beginning to suf-
fer the evil effects of its bound ess arro-
gance.
Prices may go lower. but the feeling
is strong among conservative investors
and spectators who think and see be-
yond the ends of their noses that run
damental conditions justify the invest
ment Of money in stocks around current
quotations. The chorus of opinion among
the big men of affairs In every quarter
is that the country is in splendid shape,
and that the outlook is for continua-
ton of revived good times. There is
hardly a discordant no-e to be heard ex-
cepting from the element which is now
organizing a scare among the benefi
ciar es of high protection. As stated in
a foregoing paragraph. this propa ganda
Is having some market effect, but the
election will soon be over and quiet re-
stored in the quarter now the scene of
trouble.
Strange to say, liquidation and price
declines have not been sensational among
the newly organized and exploited indus
tr ais, described in the street as wild
cats cats and dogs, wind-blown things
rainbows. and the like
This may have been because the stocks
were not SO widely scattered as they
were supposed to be. The big trading
| in them may have been of he laundry
| knd-handing the stuff back and forth
| without actual transa ctions. Washing
is another phrase used to describe this
sort of fake work 1t Is a disgrace to
| the stock exchange, but is the means
ma jor'ty of new stocks 1t is the stere-
| the public. and If kept up long enough
certificates.
Trading in Reading Spectacular.
Trading in Reading has been one of
| the spectacular features Of the market
| for the last two weeks. This week an
| last transactions amounted to nearly
twice the entire common stock ca pit al .
zation OF $4,000. 100. About $40, O,aOO,tNO +
| the common stock Is locked up, and the
| real amount which is apparently hel
| by the public g.ves a sta ting v insi :
| n.ffcant bass for the enormous transa :
| Central and Baltimore and Ohio | ave o.
| capital "a ion of Reading. securities su p-
a. Ix~ ln11 nd ty.rs,