New-York tribune., 1908-04-24
FINANCIAL AFFAIRS
4DT4NCE N STOCKS.
Pennsylvania Loan the influence
Broader Trading-Money and
ErchGngC.

Stocks ere strong from the outset yesterday
and at the close many net gains OF 10 = points
were shown. The business transacted was the
largest in two weeks and not far from double
that of Wednesday, Both the increased activity
and the advance in prices were due primarily
10 the success of the Pennsylvania Railroad
new s40.G00G00 bond issue, which aroused eA-
pectations that, after many weary months OF
waiting the investment field might be ripe for
the railroads harvesting. The names cI tie
houses which are bringing out the pennsylvania
loan and the public favor with which the loan
has been received, one of its evidences being
the premium Of more than per cent already
offered for the bonds give assurance that the
Offering will be readily absorbed. But, al
though the existence Of an investment demand
is shown. that demand is only at its beginning.
and 1t begins with a security of the very highest
class; so that it cannot safely be assumed that
the time has yet arrived at which market can
be found for long-term obligations OF railroads
in general The investing public, although ap-
pareptly now disposed 70 put some Of its sur
plus funds into railroad bonds. is still in q dis
eliminating mood, which is likely to continue for
n good while; and other heavy hotatlonS, later
in the season, viii be subjected to comparison
with the Peunsy lvania's bonds, secured as they
by first mortgage on The main I1lG OF
that great system. In the bond department,
as well as in the stock market, increased aCtlV-
ity prevailed yesterday, the transactions being
more than third larger than on the preceding
day. and the price trend was generally upward.
and sterling rates closed unchanged from
Wednesday, after having suffered a decline Of
10 points. There is moro or less discussion rs
to the effect upon the gold movement of the
placing abroad of a large proportion Of the
PENNSYLVANIA bonds, but the best opinion is that
that operation although naturally tending to
check the outward flow Of the metal, will not
have an important influence IN that direction at
present with the foreign demand for gold 50
real az It is and with money rates in European
capitals ruling higher than at this centre. There
was no change in rates for call loans here yes
terday. but easier tone reported in the
time money market. The Bank of England's
weekly statement showed an increase Of $S45000
in gold holdings and a slightly larger increase
in loans. The proportion Of reserve TO liabili-
ties rose % sos. against 80 a week ago.
Some new high records for the year were
made IN the stock market notably by Union
a net gain Of . points Norfolk & Western, de-
spite the reduction of the dividend and the
nouncen1ent Of the sale of d large issue OF notes
advanced IL points. while the preferred, on a
single transaction, gained AS, 1t win be re
l1lernbered that other stocks Of late have ad-
yanced Oh the cutting Of their dividends the
only sound policy in the face Of decreased traf-
fc receipts and a depressed business situation
Sharp advances were made In various special
ties, q movement which probably represented the
marking up Of these issues by pools rather than
the development of demand from investors
for very large part Of the days trading was
professional Wheat made further sharp ad-
vance. both here and IN Chicago, and in the cot
ton market new low levels were touched