New-York tribune., 1908-07-16
FINANCIAL AFFAIRS
STOCKS REACT At CLOSE.
In Best Part of Day Values AdUance
Gold Erports arranged.

In the greater part Of the day stocks were
strong and active, the volume of business show
ing marked expansion in the number OF is
sues traded in and improvements in the char
acter of the operations. There better
commission house demand and heavier buying
by the interests who already are large owners
of securities, especially in such stocks as Union
Pacific. Southern Pacific. United States Steel
Canadian Pacific and Reading. The upward
movement was checked in the final dealings by
realizing sales, and as consequence the major
ity of active issues showed small fractional net
losses the decline. however, failing to shake bull
confidence in the future of the market. AS
matter OF fact. the late recession was considered
by careful market observers indication of
an-ncreasing interest in speculation. Reactions
are healthful accompaniment of bull cam
paign, showing that operators are taking profits
in sight with the expectation of securing bigger
lines at cheaper figures The general tone OF
Wall Street sentiment yesterday far more
encouraging to the advocates of higher prices
than 1t has been in many weeks and the fact
that some of the oldtime bull leaders were active
in the dealings important influence in In
ducing an outside participation in the transac-
tions. Traders short of stocks have not been
in an enviable position in recent days, and many
in this class who have made money on the long
side of the wheat market have lost the gain in
stocks.
Realizing sales were we'll taken, though they
were heavy enough to bring about reactions.
The only surprising thing about the market was
its ability to stand up well in the face OF the
active selling movement that developed in the
late trading. Reading. Union Pacific and United
States Steel common. in which the profit taking
operations the heaviest, ended the day at
small net gains while Atchison Missouri Pa
ciic, Canadian Pacific and 500" common also
showed net gains at the close, elsewhere in the
active list unimportant losses being recorded.
Canadian Pacific again bought on the idea
that the stock is not dear at its present level
also the expectation that there Will be a large
wheat crop in the territory served by the road
and the possibility of an extra DIVIDEND on
the stock from the land sales account And
500" common. which represents a property
which is controlled by the Canadian Pacihc
acted in sympathy Some of the people VINO
have been buyers of these stocks recently have
taken q stock interest in New York, Ontario q
Western, and they appear confident that the
last named issue will sell in the nelShborhood
of 30 before it goes materially lower Ihey are
buying the issue its merits as a per cent
stock that Yields upward of per cent, and on
the belief that it is a good proposition whether
OF not the New Haven parts with its majority
holdings in the company Amalgamated copper
was something of a laggard, despite the declara-
ton of the regular dividend on the stock. Money
was easy and sterling exchange was at leNel
that permitted the engagement of Slpooooo
gold for Paris account AS pointed out IN TINS
column on Wednesday. it is not likely gold eX-
ports will be resumed on large scale
New York banks paid considerable amount
of money to the Sub Treasury yesterday, under
the call OF the Secretary of the Treasury Tor
the return of S45.eO0,0UD government 1unds,
both for their account and Tor that OF
country institutions but the amount thus turned
over will bring about any change IN local
money rates. The government on other ac-
counts is debtor TO the city banks ana Is llhely
to show an excess of expenditures over receipts
for many weeks to come; indeed, according 10
current indications, the demands upon the fed
eraI cash balance in Treasury vaults promise
10 be heavy enough in the course of the next
few months to cause a further withdrawal of
government funds from depositary banks The
latter Will be able to hand over additional fed
eral sums without weakening their reserves ma
terially. The banks throughout the country
have more money than they need for present
ordinary requirements of trade and speculation,
but of course, the time will come when they Will
be compelled, and not unwillingly, to provide for
the needs Of the agricultural section of the coun-
try and for the fall demands Of merchants,
which may be heavier than generally expected
owing to the signs of a revival in the nations
industrial activities. In most lines of trade
much more hopeful situation is developing. De
nand from consumers is better than II was IL
month ago. a reflection of which is presented in
the return to work in many lines Of who
have been idle since the beginning of the year
Industrial conditions reached rock bottom
eral weeks ago and they no longer scraping
at that point An upward movement has be-
gun. and though It is quiet at present it
gives signs of developing into something of
large proportions. And the further effect of
expanding trade must be reflected at remote
pertod In firmer rates for money. Fortunately
there has been SO much liquidation in all Lines
that the banks are in stronger position :hau al
this time in many years, and they are well pre-
nsred TO handle the financial end of business
revival without imposing any hardship on bor-