New-York tribune., 1908-05-27
FINANCIAL AFFAIRS
STOCK VALUES LOWER.
Prices Close from 1 to ! Points
Doscn-Bear Traders Aggressive.

Stock market values moved in an irregular
manner throughout the day, with the final ten
dencv in the direction of lower quotations. In
the last half hour the greater number of issues
suffered severe declines on selling movement
that reflected more activity on the part OF the
professional element than at any preceding time
in the day. its efforts to bring about cheaper
figures being especially successful in the Harri-
man shares St Paul and Reading. St. Paul
closed at 4 net loss of AS. Union Pacific at net
loss of 3ls, and Reading at net loss OF 3, While
elsewhere in the active list net declines OF from
! TO points were common The recovery IN
Mondays market failed to attract an outside
demand for securities. ard the absence or d
buying movement of this sort, together with an
apparent disposition among the hackers Of the
bull campaign to rest for time, induced ag-
gressiveness by the shorts, who were helped by
stop loss orders and liquidation by frightened
bulls. who bought on Mondays advance in the
confident expectation that values would be
pushed Immediately TO a higher range The
bull movement in wheat and corn. which was
based on grossly exaggerated reports Of damage
to the crops, was used by the operators for
decline in stocks as an argument in their favor,
but the chief cause Of the break was found IN
the position OF speculation rather than in out
side factors The financial community as q
whole, however, was somewhat pessimistically
inclined. owing to the efforts of certain inter
ests in Congress TO effect mongrel currency
legislation AZ this session on the poorly founded
plea that without some new financial measure
the country would run into another money
panic in the autumn. There is no basis for the
assumption that trouble will develop in the
fall, and the bankers who took care of the sit
uation ably in 1907 want no financial legs-
lation unless il is on the lines OF real currency
reform There evidently is not the slightest
chance Of effective currency legislation al pres
ent. and tinkering with our money system IS
frowned upon by all conservative fnanciers and
business men.
Investors took all the Burlington bonds that
were offered for sale yesterday at s512, and i'm
mediately afterward they were quoted on the
curb at an advance of 212 points. There is
large amount OF money seeking investment in
attractive securities at attractive prices, but
the public sho"s no inclination to speculate at
the current range Of values, particularly It
knows the present market practically is a two
man affair. and as consequence extremely un-
safe for the ordinary operator in stocks. The
general situation will be materially benefited
by a steady absorption of first class bonds by
investment capital. and the fact that many
issues already have been placed on the
market while plans are being made for tho
f7otation of additional securities should not
cause uneasiness inasmuch as the proceeds
from these opera tions will be used to increase
the earning power OF the companies concerned
and strengthen their position as safe chan
nels for the investment of money. The COM
panies putting forth new bonds fully able
10 meet the resultant increase in interest
charges on the basis Of average earnings of the
last few Years, and conservative observers do
NOT question the wisdom Of the railroad men
and Hnancsrs who believe that despite the reac-
ton in business the time is propitious for in
crea sing the facilities Of their companies through
the medium Of the bond market There are
various good signs on the business horizon, and
II the crops turn out we'll this year prosperity
on large scale doubtless will develop after the
1<
deefat Of Mr. Bryan. who in all probability will
be the Democratic standard bearer So far
crop conditions have suggested excellent yields,
but IL is too early. however. to make predic-
tions that current conditions will prevail
throughout the crop season. Much may happen
TO the crops between now and the time for
their maturity. and it should not, therefore. be
considered a foregone conclusion that il is 10
be q year Of extraordinary plenty in the agri-
cultural section of The country.
Government revenues continue 10 fall far be
hind expenditures, and at the current rate Of
daily deficit the excess OF expenditures over
receipts for the fiscal year will exceed $40, ,000-
900. The Treasury has a working balance at
the present time of SCI. .253. .S21 and, as federal
income doubtless viii continue light for d con-
siderable period to come, while expenditures
will be heavy, it is more than likely the Secre-
tary of the Treasury at no distant date will call
upon the national banks to surrender govern
ment funds TO the extent OF at least $4,000 600,
which would still leave in the repositories more
than s126 coo, 900 government money. In August
the Spanish war loan bonds fall due, and II they
are redeemed further call will be made upon
the depositary institutions These factors will
work toward f1rmer rates in the money market
Though the surplus OF the local banks is heavy
there is no reason 10 suppose that the present
plethora of funds will prevail for any great
length of time So far in the week the city
banks have lost more than sl2o00.0o0 on their
operations with the Sub-Treasury, due 10 gov
eminent Withdrawals last Saturday and gold
exportA