New-York tribune., 1908-09-21
THE FINANCIAL MARKETS
NATURAL WEAKNESS IN STOCKS DOES NOT ATTRACT
INVESTMENT SELLING.
Supply of Money York. Enormous but Interior Beginning
Wvihdrasu Balances-Stering Exchange Conditions.

last weeks stock market. The general postum
of the market suggested transactions on .he
short side while the visit of MT Bryan 10 LSe"
yorL Tho fai,ure Of the recently rumored Har-
riman financial plans to materiaiHe. the usci-
sion of the Supreme Court of Michigan upholu-
ins the minimum freight law in that state anu
a statement in trade paper that there had
been considerable slackening in the inquiry lot
iron and steel products naturally encouraged
active dealings by operators espoased 10 tie
bear account in securities specuauon. Inc
heavy selling by this element induceo nquiua-
ton by many followers of the bull campaign In
Ar rIarrir,an iss,,es and It brought on the mar
ket a large amount of stock on stop loss orders
On the decline offerings appeared 10 De Wen
taken but there was no combined effort en- the
part of the banking and railroad interests which
have been behind the market for so many weeks
10 push prices higher; also no indication that
they were unwilling for the time to let the mar
ket run a course practically demanded by wholly
speculative considerations. The trading ele-
ment doubtless found in political talk reason for
the usual Presidential scare, but holders Of in
vestr,ent issues were not at all impressed by the
talk OF Bryan success possibilities. as there was
no selling for their account while there was a
fair investment demand on the downward move
ment in the nidweek dealings. First class
bonds were taken by strong buyers BOND
houses reported a better inquiry for railway
mortgage issues of the gilt edged variety and
some buying Of the semi-speculative securities
by people who believed that prices warranted
purchases TO hold for higher level
The general stock market has been advancing
for so many weeks that further substantial i'm
provenent at this time is not looked for by the
leading Wall Street houses that advise. never
theless. buying Of representative issues on all
reactions There is no good reason In condi-
tions affecting the actual worth of securities
why cash purchases should not be made at the
current level but of course. in view OF the IN
creased strength of the bear party on tne
exchange there may be much wisdom In not
buying stocks on margin until further decihe
has removed the weak features of the specula-
tive position. The Hartman shares. "nie
hacked by great value and by men Of substantlal
resources, may seek a temporary lower ieNei'
The Hill securities also may go lower because
of their lack of support and the uncertainty re-
rardine the dividend prospects of the Great
Northern Ore certificates Reading, thousn
renresenting company that showed per cent
earned on the common stock In year whlch IN
cluded many months OF trade depression also
may be a candidate for a cheaper leVei' o"liie
to the heavy advance that already has taken
nioce IN the issue and TO the improbabflity of
an increase in the dividend from the per cent
basis that has prevailed for number OF years
Readings earnings in the last hscal year W.
excellent and In some other years even pe''el
results were reported but at no time has there
been any apparent disposition on the part OF the
directors to place the stock on a higher diVloeno
basis Reading therefore at its present price ls
not a cheap proposition for the investor WIN
wants get at least per cent on Ills Iiloiey'
Much idle talk has been heard IN Nall -Suee-
In recent weeks regarding alleged. plans for
Hartman financing by which the value OF lhe
Hartman issues would be increased to ma
terial extent, but Mr. Hartman, who is ousily
engaged in building up his properues' upon
which he already has expended S30e,oOO,Ooo re-
fuses TO confirm any. of the reports about the
future Of the companies under his controi. De
yond admitting that his properties VIII progress
as much in the future as they have done IN the
past. People who are baslng thelr hafhe'
operations on the theory that something sem
satioDai is contemplated by Mr. Hartman in
the way of financing undoubtedly are doomed 10
disappointment. There is some reason TO De
lieve that the cash resources of the Union Pa
chic recently have been increased through sales
OF Hill shares owned by the company at ma
teriaI profit over the prices at which they were
acquired. As for Erie, Mr.. Hartman and Mr..
Morgan are not taking the public into their
confidence regarding the future of the property
but It is easy to see that with these two finan-
ciers working in harmony the Erie road, which
occupies natural position for the attraction Of
a heavy volume of traffic from the Western
lines some day will be held in high esteem by
investors.
Railroad earnings in general are showing a
decrease in the percentage of loss, and Whiie
there is no great activity in any line of trade
the volume of business is far better than 1t was
a few months ago, a reaction of whicn is pre-
sented in the decrease of idle cars throughout
the country and improvement in bank clearings,
as compared with the returns earlier in the
year Election uncertainties naturally serve to
retard the demand from consumers but in view
of the trouble in money and business resulting
from last years panic prediction conditions In
business circles far from discouraging. A
great deal Of noise is being made by Mr.. Bryan
and his outfit. but the people who decide cleo
tions Will not vote into power a party that Is
wanting in almost everything that goes to make
administration successful in its relation to
the best interests of the business community.
If apathy, however, exists among the Republf-
market values may serve a good purpose
Money rates. though firnIer than recently re-
ported. are still at an easy level, with no i'm
mediate prospect of advancing to a materially
higher level In the week upward of 100000
transferred for. the account of local banks
by the Sub Treasury to New Orleans, and ac-
cording to current indications the movement of
money to that point in the Of the next
few months will be heavy consequence of
the large cotton crop requirements in the South,
1t is estimated that exports of cotton from this
country in the cotton shipping season Will bring
in one shape or another about 100000 900 for
eign money to this country, and together with
exports of food products will create balance
on trade account large enough to offset by big
margin accounts that figure the debit side
of our trade with other nations. Sterling ex-
change was strong last week and not far from
the gold exporting level. The advance which
was due in great part to sales of foreign held
American securities at a time when few bills
were Offering IN the market will not, II is be-
neved last All signs point toward lower rates
for exchange throughout the autumn. and i'm
ports Of the precious metal If local conditions
require movement of this haracter.
Call money may work TO a higher level in the
fall months. but unless stock market speculation
demands become excessive the high point of the
season should be well under the average of cor
responding periods in preceding years Hold
ings in cash Of the New York financial institu-
tions amount TO more than $500. coo 900 and in
terror requirements of as much as $50 600. 900
could be easily handled.