New-York tribune., 1906-10-02

Trading in stocks was active throughout the
day a movement of values which showed
sharp advances in many Of the leading issues
and net gains in the greater number of securities
at the close. Active buying reported for the
account of the short interest, while the substan-
tial operators who for a long time have been
committed TO the bull side Of speculation, were
identified with the upward movement, especially
in AmaIgamated Copper. Atchison, st. Paul,
Reading. Southern Pacific and Union Pacific.
United States Steel common also was in good
demand. gaining Ia. Strength in st. Paul was
accompanied by rumors that the Hartman in
terests had secured control of the property, but
In official circles there was no disposition 70
credit the report. notwithstanding the fact that
large blocks of the stock recently have passed
TO people friendly to the Union and Southern
Pacific companies. There are a number of
good reasons for the belief that the biggest
holders of St. Paul do not care to see the COM
pany an adjunct of the Union Pacific system.
especially as the ST. Paul is building its
way TO the Pacific Coast, where 1t Will have
large terminals, particularly at Seattle; and at
this point the company may come into possess
sion OF the valuable terminal facilities OF the
Pacific Coast Company. The stock of the latter
advanced 27s net yesterday.
Speculators who have been short OF the
ket in the last few weeks evidently are be-
ginning 10 realize that present money market
conditions and the remote possibility of the
election of Mr. Hearst have not changed the
attitude Of the men who have large financial
resources and who believe that eventually quo
tations for securities will reach higher level.
In the last hour activity was reported through
out the list. especially in Atchison and Reading,
both OF which advanced more than p per cent.
Buying Of Atchison apparently is based on the
belief that the stock will be advanced to
Der cent dividend Strength in call money failed
to influence the course OF market values. the
per cent quotation being due to the readjust-
ment of credits incident TO the october interest
and dividend disbursements.
Reserves Of the banks throughout the country
are low while abroad monetary conditions are
unusually unfavorable for this period Of the
year. In view OF the heavy demand for funds
from mercantile sources due to the great expan-
sion which is under way in trade in all parts of
the country It not all likely that rates for
loans viii decline easy basis in the i'm
mediate future; indeed. the chances favor
hrmer level in the balance OF the year. While
the statement of the associated banks Of this
city last week showed some Improvement in
reserve, loans increased to the extent OF more
than 100000, and in connection with this loan
expansion it is interesting to note the fact that
IN the last year the banks OF the country in their
consolidated report TO the Controller of the Cur
rency presented an increase in loans OF 500
600 0oO while in the same time cash reserves
decreased S40.000.OO0.
Credit expansion has been enormous. not only
as affecting home institutions, but also foreign
lenders who have placed tremendous amount
OF money in this country II is estimated that at
the present time borrowings abroad amount
TO above S4O00000O0. Notwithstanding Europe's
! objections to shipments of gold to New York,
local bankers. being helped by easy exchange
and high money here. are able to secure most of
the metal available for export in London and
yesterdays engagements aggregated more than
| S3.oO0.o00. This movement. while rejecting the
| strength Of American credit, represents borrow
| ing for account, but just as long as our
credit remains good there will be no uneasness
! in Wall Street over this country's big loan ex-
| pansion abroad And the fact that big specula-
| tors are carrying their stocks in great part on
foreign credit does not bother the financial COM
| munity. Strong in natural resources and with
| a stable government this country certainly is In
| a position TO finance it's needs with foreign
| money. Moderation in speculation. however is
! advisable.