New-York tribune., 1908-08-30
FINANCIAL AFFAIRS
STOCK T4LUES HIGHER.
Union Pacific and Southern Pac'tc
at Nesc High Records ds-Banks
Holdings Increase.

Transactions In yesterdays stock market were
heavy in volume on a movement OF Values tha'
tended in the direction of higher quotations III
the two hours of trading The Hartman Shares
again attracted the attention of the street aS d
consequence of the character of the buying IN
Union Pacific and Southern Pacific. the opera
tions in these issues suggesting the presence III
the market of orders for Hartman focheleliel
account Southern Pacific closes at a net gam
of q. and Union Pacific at net gam or -
both stocks making new high records for the
wear. The effective buying in the hartman
shares extended TO the United States steer is
sues. Atchison St. Paul, Amalgamated Copper
Consolidated Gas and Canadian Pacific. While
elsewhere in the list prices were helped by the
movements in the issues named. United states
Steel preferred sold at its highest figure OF the
wear and according to brokers who bought the
issue the movement was due entirely to invest
ment operations At the close prices throughout
the list were at or the best level of the day
in the leading issues while sentiment in specu-
lative circles intensely bullish, predictions
being freely made that there would be an active
broad opening tomorrow. The weekly return
of the associated banks. published after the
close of business. showed an increase in the
serve above legal requirements of S2.211.0O0,
placing that item on a level higher than at this
time in any preceding year since 1884. Total
reserve now stands at s65,35S.975, compared
with IS, 4i0 year ago, and s. S69, 100 in
1906 Loans increased in the week s3204 300,
and cash increased So, ,S31 800. The actual con-
dition of the Clearing House banks Friday
night however, showed a decrease in reserve on
all deposits of s3,42S,400. The trust companies
enjoyed large gain in cash. The combined
cash holdings of the city banks and trust COM
panies amount to s517. .691, 500
According TO current Indications there will be
no material decrease in the holdings of the New
York banks and trust companies in the immedi-
ate future. while there is no reason to believe
that in the autumn months the demands for ac-
commodation in other parts Of the country will
be large enough to cause a serious drain upon
this centre Many spectators in stocks are
counting on easy rates for funds in the balance
Of the year, and as consequence they
prospect Of big profits on the bear side of the
stock market, unless the majority of bull opera
tors should overstay the market-in other words
bring about bull market that would become
tophea = from its own weight. Such develop
ment is not impossible, despite easy money and
at this particular time it may not be out of place
to make the suggestion that small dealers in
securities on borrowed money ought to exercise
great caution In their market operations not
withstanding all the encouraging factors in the
world of money and business The advance in
prices in the greater number of issues has dis
counted the improvement that already has
taken place in the countrys industries, but this
feature Of the situation does not count for much
at present in the market letters sent forth by
commission houses that anxious to secure
customers General conditions favorable to
the purchase Of securities on cash basis, but
big .rgins ought to be supplied on all specu-
lative operations. The larger interests are able
to secure all the money thev require at easy
terms for the carrying of speculative accounts,
and this very fact suggests the proba bity of
higher prices before a downward movement of
important proportions be brought about but
IL should be borne in mind that in bull the
small operators quite frequently crushed by
the forces back of the forward movement.
There has never been a bull speculation the
Stock Exchange that has not been accompanied
by reactions large enough to wipe out ordinary
margin accounts.
In buying stocks for cash at present prices II
is we'll to note that leading banking houses in
the Street recommend the purchase of the Har-
rman and Hill shares St Paul United States
Steel preferred American Sugar Refining, Cana
dian Pacific and the 500" stocks the latter being
heavily held in the treasury Of the Canadian
Pacific; Pennsylvania, Chicago & Northwestern
and all the first class railway mortgage issues.
There are many other stocks that might be
added to the list just given, but intending buy
ers are advised to consult with representative
banking houses before buying any stock unless
they may happen to be well informed regarding
the intrinsic worth of securities. In the case
of the greater number of first class industrial
securities holders receiving large return
on their investment, Notwithstanding the fact
that business has been poor in the last eight
months and yet Mr. Bryan believes that the in
dustrial corporations should be busted The
industrial corporations employ millions of men
who to-day are receiving better wages than
ever before in the history of the country while
the same thing may be said of the railroads. II
Mr. Bryan's ideas on the corporations the tariff
and the guarantee of bank deposits put
into practice stockholders would receive smaller
dvdends-in many cases no dividends at all
and labor would be compelled to accept big
reductions in its pay or else go out of business