New-York tribune., 1903-07-23
BONDS.
THE DAYS OPERATIONS IN STOCKS.

Advances made in yesterdays stock market
represented covering of shorts and in some
cases buying for investment account Tech
nical market conditions encouraged upward
movement, especially in the more active secu-
rites. which for the last ten days have been
under extreme bear pressure. At the opening of
the market the movement of values reflected a
temporary cessation of Liquidation and a dis
position on the part of the professional element
10 work for a rally. United States Steel shares
naturally attracted attention at the start. owing
to their severe decline in the preceding day and
the advancing tendency which Immediately de-
veIoped was q source Of satisfaction to the
financial community. AS the heaviest holders of
the United States Steel stocks represent some of
the most important financial interests in this
country. the protracted decline in the com
panys securities has caused uneasiness in in
vestment circles. If this security is to remain on
per cent basis it is natural to be supposed that
the market would be filled with buying orders
at the current level as the return on the invest
ment at the present quotation amounts to over
IL per cent. According to reports received from
the iron and steel industry trade conditions do
not warrant the present pessimistic feeling
the iron and steel securities, but as the iron and
steel trade may not continue to enjoy its pres
ent degree of activity in the next few calendar
years, 1t may be wise to proceed with great
caution in market operations in the United
states Steel securities and in the shares Of other
iron and steel concerns
There was excellent demand for attractive
railroad issues in yesterdays market as for
instance the Erie shares. Baltimore and Ohio
ST. Paul, Missouri Pacific. New-York Central
and Manhattan. The directors Of the Erie Rail-
road have placed the first preferred stock on n
per cent dividend basis. and at the present
market quotation of the security purchasers of
this stock will be able to secure an income of
over 5l2 per cent. Erie first preferred may now
be bought as a permanent investment issue.
The company is in a position to maintain divi-
dends on this stock. and unless there should be
an enormous shrinkage in railway traffic in the
next few years holders OF the common stock
viii doubtless receive a return on their invest
ment The Erie Railroad is spending money
Judiciousy in the interests of the property i'm
proving the physical condition Of the road in a
manner that viii eventually cause a reduction
in the cost Of operation and increased traffic re
ceipts This is also true of Baltimore and Ohio
The securities Of this property have been taken
by an excellent class Of buyers in the last few
months, purchases being based on the increased
earning power of the property and the con-
seryative character Of the companys manage
ment. The Baltimore and Ohio row has track
age facilities covering over 1000 miles of the
road that runs through some of the most pro-
ductiye sections of this country. The Pennsyl-
vania Railroad owns large amount of the
Baltimore and Ohio's stock but people who
have been identified with the Baltimore and
Ohio for many years are increasing their hold
ings on every possible opportunity.
There material change in the money
market situation. Money on call was offered in
large amounts at comparatively easy rates. and
there indication in money market con-
ditons Of advance in rates for call funds in
the course Of the next few weeks. The move
ment Of money is still heavily in favor of New
York. Interior currency movements, however
viii doubtless begin to run against this centre
after the middle Of August, and from then until
late in the fall the New-York banks will be
losers on weekly cash account. While prepara-
tions have been made for the usual fail de-
mands for money from New-York there is no
good reason 10 believe that there viii not be
the usual disturbance in the money market
this year. Fortunately the stock market is in
q position withstand money market strin-
gency,- owing TO the fact that speculative
counts have been reduced 10 an extent that in
Nolves the banks for only a small amount.
Closing prices in the stock market were under
the best of the day. owing to renewed opera
tions for lower prices in the last half hour