New-York tribune., 1908-08-06
FINANCIAL AFFAIRS
STOCK VALUES STRONG.
ActiUe Commission House Buuing-
Sterling Rates Lozcer.

Transactions in yesterdays stock market were
heavy in volume and fairly well distributed,
with further active commission house buying
for the account of substantial Wall Street in
terests; also for the account of the so-caIled
public, purchases for the latter being heavier
than on any day in the current upward move
ment New high prices for the year made
by many of the leading issues, including the
Union and Southern Pacific shares, Reading, the
United States Steel issues and St Paul, and
though the best part of the gains were not main
tained in a number of stocks the general level
Of values at the close was apove the final fig
ures in Tuesdays trading. Union Pacific sold as
high as 1565s, but closed at 1559s, while Read
ing, which touched 1246s, ended the day at 122k
net loss of g. Realizing in these two stocks
was extremely heavy, and in various other parts
of the list advantage taken of the early
high prices to convert paper profits into cash.
Offerings, however were well absorbed and
there evidence that the larger interests
disturbing their holdings. Indeed, in most
shares the character of the business indicated
buying by active pools and operators who have
been bulls on the market for many weeks this
being especially pronounced in the copper stocks,
American Smelling, National Lead, the Harri-
man shares, Rock Island preferred Ontario &
Western and the Steel securities. Rock Island
preferred advanced net IL. and the operations
suggested accumulation by the old Rock Island
crowd. Traders who sold stocks at the close to
up for the day reported good market for
their offerings, and they also reported that in
the day the market inclined to grow dull
recessons and active rallies. This is
condition that does not foreshadow profits
the short side of speculation. a further ad-
vance in copper metal prices relatively favorable
earnings by the New York Central lines for June
and anticipated payments to the Knickerbocker
Trust Company depositors were developments that
strengthened confidence among bull operators.
Wheat prices were higher on Chicago tales about
damage to that cereal, but stocks were not re-
sponsive to the movement in the grain markets.
Winter wheat has been harvested and estimates
place the crop al 420,0O0,O00 bushels. Spring
wheat probably will yield about 1S0,0O0,O00
bushels.
In July there was no material change in the
amount of money in circulation as compared
with the preceding MONTH but for the twelve
months ended on July 81 money in the country,
exclusive of Treasury holdings. increased S264,-
3S9 9S7, a large proportion of which is in the
banks of New York, which hold more than one
sixth Of the entire amount Of funds in the
United States. Money has accumulated in the
banks of this city in the last eight months be-
cause of the depression in business, but
rent indications point TO better demand for ac-
commodation in the business world, with heavy
inquiry for crop moving purposes, it is probable
that there soon will be reduction in local cash
and reserve items and more active movement
OF money in the channels of trade. The usual
reports from the West that interior cities will be
able to finance the harvests without withdraw
ing their balances from this city are beginning
the.swest and South will be compelled TO call
on New York for assistance Already receipts
of currency at this centre from outside points
show a declining tendency, and according to the
opinion Of the leading bankers active out
ward flow Of money from New York will begin
before the end OF the month"; though Il is not ex-
pected the movement will be accompanied by
anything approaching stringency in the loan
market. Persons who may be counting upon high
rates for money apparently are doomed to disap-
cfYafr AMI
be exceeded many times in the autumn At
present borrowers can secure all the accommoda-
ton they desire to last over the period when
quotations for funds generally advance at from
212 to per cent the latter rate being for a
period of five months, but far no great de-
mand has developed.
Railroad companies may talk for publication
poverty and bankruptcy because of alleged low
freight rates. but it is not difficult to discover a
tone of extreme optimism in the private con-
versation of railroad officers. They find that
the proportion of loss in gross earnings as com
pared with this time a year ago is growing
smaller that through careful economies de-
clines in earnings are relatively light, that
through reduced dividends and in some cases
passed dividends there mas been a saving for
the current-year of approximately $1S,000000
and that best of all, there distinct signs Of
a gradual return of normal times in the indus-s
trial world Moreover, railroad officers and
banking interests identified with the transporta-
ton companies have so much confidence in the
outlook that they are planning for the resump-
ton of expansion and Improvement work from
the proceeds OF proposed bend sales. The mar