New-York tribune., 1908-11-30
FINANCIAL MARKETS
MOST STOCKS HIGHER.
Money Edsier-RmLrodd Earnings
Shoe I'm proUement,
THE WEEK IN WALL STREET.


irresuIarity in the last week. were as rule
in the direction of higher level. new recoros
for the year being made by Union and Southern
Pacific and many other issues while the gen
eral average AT the close both In the railroad
and industrial shares, only fraction under
the best level reached on the election advance
The strength in the Hartman shares proved 10
most minds that the original interests IN 'he
bull speculation In those securities had not dis
tributed their holdings 10 any great extent ano
were still identified with the upward course OF
values though there was no indication III 'ne
character Of trading that the public was fol-
lowing their lead. The outsiders were heaVE
buyers Immediately following the election of
Mr Taft, but were frightened out OF the mar
ket on the reaction that began on November 1S'
and which continued until the close OF the week
ended November 81 and since that movement
they have not been active factors in the deal
ings last weeks rise being based almost entirely
on covering by the shorts and clique operations
II prices move around the current level Tor
few days the public doubtless will return to the
market Commission houses as a rule are Dull
ish and are advising purchases, especially on
all reactions IN values. Notwithstanding the TACT
that some observers believe that prices are high
enough and ought to recede from the existing
range before the holidays. Technical conditions
last weeks market began with the speculative
position materially improved but from the high
points made in the week just closed there may
be further setback. though in view Of the
strength of conditions governing the real worth
Of securities and the abundance Of money at
easy rates it does not appear safe to extend
ENCOURAGEMENT TO the people who believe that
Just because quotations have enjoyed enormous
appreciation from the low level Of the year the
market must now turn and move in the other
direction Investors who have money on their
hands may be able II secure stocks at conces-
sions from prevailing prices. and bear traders
NAV be able to make successful quick turns on
the short side of speculation. but unless rad
ical adverse change should develop in the posi-
zion Of the countrys industries and money mar
kets steadily declining quotations seem out OF
the question
Securities do not present the attractive op-
portunities for buyers that they did a few
months ago, but with money at its present level
there are not many issues that look al ali dear.
First class investment issues may be bought
70 return from AZ to ~ per cent, and IN the
case of some of the industrials of merit, as. for
instance United States Steel preferred, as much
as per cent comes - the investor at prevailing
quotations No especial uneasiness is felt over
the future of the United States Steel shares as
consequence Of the proposed reduction in the
tariff steel. and il apparently is certain
that reduction of from 10 to 25 per cent will
be made rather than q complete elimination of
the import duties ii is not likely there will be
any selling of the shares of the independent
steel companies because Of the tariff discussion
Mt Carnegie's views the subject, as set forth
in magazine article by the distinguished cap
italst frightened g few people for time. but
his ideas have ceased to be a factor in current
Wall Street considerations for the good reason
that the financial community knows that while
the United States Steel Corporation is strong
enough TO prosper without further protection
il is not the policy of Congress to remove the
tariff steel when such an operation would
serve to wipe many of the independent steel
manufacturers that competitors Of the big
steel corporation II Mr.. Carnegies suggestions
were carried out the United States Steel Cor
poration would become more strongly intrenched
at the expense of its weaker rivals. The shares
OF the United States Steel Corporation find a
good market because Of the strong financial
position OF the company and its ability to earn
dividends on q working basis OF from 40 TO 90 |
per cent of its normal capacity. and as far as
the preferred issue IS concerned the character
of buying suggests that il rapidly is going out
OF the Street to be held as a permanent invest
ment. Though the water has been squeezed out
Of the common. it will remain for time in the
semi speculative class. In the market move
ments Of the next twelve months the metal |
shares doubtless will reach higher level, while
the thing may be said Of most industrial !
securities OF good reputation
Bank holdings supply ample reason for the
continued in money rates at this centre. |
Cash and reserves of the local banks and trust
are abnormaIly heavy for this period |
Of the year, and the promise Of cheap money for !
weeks come is causing some speculation in |
foreign exchange circles S to the possibility of !
gold exports from New York before the end Of |
the year. Sterling firm last week, but rates |
did not warrant figuring upon shipments with /
out an inducement from Paris in the matter of /
paying interest the metal in transit The /
Bank Of France showed further disposition to !
increase its gold holdings by bidding for and |
securing ali the South African gold offered in /!
the open London market, while there was !
especial indication at the British capital Of un-
willingness TO let the metal go, though It was !
thought likely that in the event OF political !
disturbance on the Continent London would |
endeavor 10 shift the French demand 10 the |
United States. The Bank of England is in a /
stronger position at present than it has been at !
this time in modern years: also the Bank Of |
France, but at Paris arrangements apparently |
are being made TO finance large Russian loan,
which IN connection with the policy Of the Bank
Of France to maintain enormous supply Of /
gold in its vaults accounts for the constant /
efforts Of that institution 20 add u its holdings /
Of the metal Gold production in South Africa |
is heavy, and the output of the mines in that
country in the United States and Alaska is one
Of the most important factors In the worlds
money markets Of to-day. And as the gold pro-
duction increases II promises TO play impor-
tant part in carrying the prices for stocks and |
to a higher level.
Money rates here doubtless will work to A
frmer be sis in the year. A large increase
in the mercantile demand is looked for, indus
trial and railroad financing will affect rates in
time. while requirements of the federal Treasury
VIII take some of the idle money from the banks
The Treasurys deficit far in the fiscal year
amounts to more than $50 600 600 and the money
received from the sale of Panama bonds will be
of no effective service in keeping up the working 7
balance after a period of q few eeks That
the Secretary OF the Treasury intends 10 re-
penish the governments cash on hand from