New-York tribune., 1908-05-02
FINANCIAL AFFAIRS
RECOVERY IN STOCKS.
Pennsylvania DiJidend Cut-Banks
Gain Cash-Business Outlook.

Lower prices made in the stock market
at the opening yesterday, in line with the weak
of the preceding day, but firmness soon
developed and the list began TO move upward
the advance becoming more pronounced in the
late trading and the close showing general net
gains, with the principal Improvement in the Pa
cifc issues. The Pennsylvania dividend was
reduced from to per cent, and after slight
recession following the announcement of the
directors action the price of the stock ad-
vanced sharply New York Central and
Atchison advanced a few weeks ago under SINH
lar circumstances, the reduction having in each
case been expected and being looked upon as
reasonable and reassuring i'll view of the de-
Iression of business. The London market was
closed, the day being Stock Exchange holi-
day, and news, other than that of the Penn
sylvania dividend cut came to hand in the
course of the day. One Of the elements of the
late strength was the probability of a good
bank statement to-day, the known movements
of money during the week indicating gain of
about $4,000 600 in cash holdings by the banks
in spite Of the withdrawal of several millions
of gold, showing made possible by the con-
tinued heavy receipts of cash from the Interior
the gain from this source for the week being
placed at nearly s9,500.000. Whether or not
the surplus reserve will be further swelled, how
ever is uncertain in view of the probable eX-
panSion of the loan item S a result of the Penn
sylvania bond issue and the Interborough Rapid
Transit note Offering Call money ruled at the
same rates as for many days preceding, the
preparations for meeting the heavy May interest
and dividend payments having caused not even
the slightest furry; but time money rates were
again little harder and are now about Il per
cent higher than week ago for all maturities,
the advance rejecting the loss of gold and the
calling III of government deposits. The foreign
exchange market was rather weak demand
sterling declining Is points, while the Paris
check London advanced Il centmes, or 2
centmes in the last two days halt has thus
been called 20 the gold export movement. but
it is probable that shipments Will soon be
sumed.
The weekly reports of the mercantile agencies
continue TO present an unfaVOrabe view of the
business and industrial outlook, finding no dis
position TO expand output and no active inquiry
for fall business The American Railway Asso-
ciatfons report of a record total of idle freight
cars at the middle of April is now supplemented
by the Pennsylvania Railroads showing at a
later date Of 90,2O0 cars and 800 locomotives un-
employed, the largest total yet reported by that
system, which operates in a great manufacture
ing territory; and all indications are that the
depression is still serious. Nevertheless senti-
ment is distinctly cheerful than a month
or six weeks ago, and confidence is slowly being
re-establlshed, as was so notably shown earlier
in this week in the tremendous oversubscrip-
tion TO the Pennsylvania bonds proving that
investors are at length willing to release money
for the purchase of securities of high grade the
marketing of which will make possible the plac-
ing of large orders by the issuing corporations
and so Will result in a partial betternoent Of
the industrial situation
with the enactment into law of the trust
company reserve bill at Albany. obliginx trust
companies to maintain a 10 per cent reserve tba
movement for bringing those institutions into
the Clearing House has been resumed and With
nluch h prospect or success. as the banks are un-
derstood now 10 be willing to admit the true+
companies as full members on a II per cent re-
serve basis, abandoning the former % per cent
requirement With the inclusion of the trrst
ril eoiilPanles The banking position in this city
would be greatly strengthened as effective g,
perVlslon over the trust companies could h. -,
eIc!sed ana in times, of stress the interest NJ
one OF the financial institutions of New yorll
would be the interest of all"