New-York tribune., 1908-06-20
FINANCIAL AFFAIRS
STOCK VALUES LOWER.
Lack of Support Induces Acti01ty
bu Bear Misunderstanding
Rates Dozen.

The absence Of an outside demand for securt-
ties and lack Of support from the substantial
market interests We're effective influences IN H.
ducins a selling movement in stocks soon after
the opening of business. in the course OF Wh1ch
material declines were recorded in all the lead
ing active issues Operators who covered their
short contracts on the preceding day in the eX-
pectation of public buying movement as the
result of the nomination Of Mr.. Taft put out
new lines when they there was to be no
response TO political developments, exerting es-
pecial pressure Union Pacific. Baltimore q
Ohio. St Paul and Reading. in which net losses
amounted to points or more. Whlle there was
an increase in the volume of business as COM
pared with recent small daily totals, trading was
poorly distributed with the greater number of
operations in eight issues, of which Reading
and Union Pacific furnished nearly one-half or
the total transactions Union Pacific new bonds
again were dealt in below the subscription price
The Taft nomination having failed to stimulate
a demand for stocks. boardroom spectators
and commission house followers directed their
thoughts to gloomy subjects, such as poor rail-
road earnings and dividend reductions. but they
were not successful in drawing out well held
securities The big men still have their stocks.
and they show no disposition TO let them go at
current prices. They are not bother1ng them
selves with the various fluctuations caused by
traders operations and they not disheartened
because the market failed yesterday to move
along the lines mapped out for it by speculative
gossip An advance was scheduled for to-day
but as generally has happened in the past the
market moved contrary to expectation. Money
was easy and no gold export engagements were
announced, the exchange market being weak
ened by heavy sales of exchange against Lon
don subscriptions TO the Union Pacific
bonds.
According TO the known movement of money
in the week the local banks have gained more
than SIS 600 900 in cash holdings, and the chances
are, therefore, that to-day's bank statement will
show a further material addition to reserves,
unless there has been unusually heavy expan-
| sion in loans, which would tend to increase de-
| posits and the amount of cash required by law
| against deposits. Little interest taken yes
terday in the probable showing Of the banks,
owing to the large reserves already held and the
| probability of the development of factors i'm
| portant enough to bring about lighter holdings.
| II is quite generally believed in banking circles
| that there will be no material decline in bank
reserves until the demand for funds in connec-
| tion with the gathering and marketing of the
crops becomes urgent, and even at that time the
| development of anything approaching stringency
will be out OF the question, unless in addition TO
| the crop demands there should be revival in
| business and stock market speculation of suf-
| fcient extent TO deplete cash holdings and cause
an enormous increase in loans. Any indication
of stringency, however, will be met by the issu-
| ance of emergency currency provided for in the
| Vreeland-AldriCh measure. The outlook favors
| a long period Of easy rates for money in this
| country and in London and Paris, and eventually
this monetary situation ought TO be reflected in
| a better inquiry for investment issues which
based their income yield and the price of
! money, cheap at present quotations. The
| bond market offers many attractive investment
| opportunities both in railroad and industrial
mortgage issues, prominent in the latter class
| being the bonds of gas companies which have a
long record as successful avenues for the invest
ment of idle funds. The bond Of good gas
| company has many qualities that ought to ap-
peal to conservative interests.