New-York tribune., 1908-10-31
FINANCIAL AFFAIRS
STOCK TR4DING LIGHT,
Early Strength in Values Follosced
by Slight Reaction-Stering
Erchange Dozen.

Stocks showed general strength in the early
dealings. but sold off in the afternoon under the
influence of distribution and pressure from the
trading element the latter working for turn
on the short side on considerations affecting the
technical position of the market. which ap-
peared to warrant reaction. Union Pacific
made a new high record for the year in the
morning at 1873. but was actively sold on the
publication of the company's September big
earnings on the usual theory that stocks are
a sale on the announcement of good news. Some
of the more important traders put out large
amounts Of the stock but the general bull situ-
alton in the issues was not at all changed by the
operation. Considerable distribution was re
ported in United States Steel common. while in
the general market there seemed TO be an un-
usually heavy amount Of stock offering at the
close Declines. however. from the high figures
were not extensive. and final figures for most
shares showed net Improvement as compared
with Thursdays last quotations Union Pacific
though heavily sold. only 81 under its best
price at the close. with net gain # y. Con
solidated Gas. American Cotton Oil and the In
ternationaI Paper issues were strong features
on 2 limited demand. In view of the efforts
exerted by traders TO bring about decline re-
suits were disappontingly small. Stocks are
so closely held confidence in the election of
Mr. Taft is so strong and the bear leadership
in the market is so weak that II viii require
something more thar traders operations to
bring about material losses in values. There is
no incentive in the current situation to sell
stocks and technical conditions alone at the
moment can be depended upon to bring about
reactions.
According TO the known movement Of money
in the week the local banks have lost only
an insignificant amount Sub-Treasury
operations On their dealings with the in
terror the BANKS gained for the first time
since the week ended August =, the heaviest
receipts coming from nearby and Eastern
points. with fair sized amounts from the West
I and South. The actual gain from out of town
was $1.13e.20o the excess receipts indicating
the cessation Of the demand for crop moving
purposes and a disposition of interior banks to
increase their balances il this city, where their
funds will be ready for employment in the
active money market which it is confidently
believed will develop soon after the election.
There are many good reasons why money rates
should work to q higher level in the rest of
the wear and at the moment local banks are not
particularly anxious 10 do much in the time
department Of the market, owing TO the idea
that they will be able to secure better price
following the probable election of Mr.. Taft,
which undoubtedly will be the signal for a
steady expansion in the loan market as d con-
sequence Of an increased general inquiry for
accommodation. Sterling exchange was down
again yesterday. but the continued demand in
London for gold for the account or Paris Sug
eested TO many minds the possibility of gold
shipments from here later in the season. even
If the metal should be shipped a Commod-
itv Imports Of merchandise stl At low
figures and the excess of exports is moderately
heavy while the outlook favors substantial
increase in the latter in the future from a
normal increase in the outward movement OF
grain and cotton. AS far the exchange mar
ket is concerned. however, the favorable bal
ance on trade account is offset TO great eX-
tent by other known factors which help TO gov
ern the international monetary situation. Call
money is firmer in the London market but
London financial conditions are exceedingly
strong.
Unofficial reports show considerable de
crease in the current week in the number Of
idle railroad cars in the country, while railroad
earnings that have been received in the last
few days show substantial Improvement in traf-
flc conditions throughout the country. The most
noteworthy reports those of the Union Pa
cifc and the Southern Pacific for the month of
September. which were made public yesterday.
Gross earnings Of the Union Pacific increased
4e4960 and net earnings increased s1.4l60I1.
and Southern Pacihcs gross decreased $45S.4 4
and net increased S1a62, ,629, operating expenses
Of the latter company decreasing SI.52i 052. The
Hartman properties have been so wen managed
ducing operating expenses In September the
way been injured. A year ago both Southern
Pacific and Union Pacific were making extraor-
dinary expenditures. and the in expenses
this year is therefore not so significant as it
appears on the surface