New-York tribune., 1908-08-31
THE FINANCIAL MARKETS
STOCKS MOVE TO HIGHER LEVEL ON ACTIVE
BUYING
Exchange Investigation of Reported Illicit Dealings Helps Sen
ment-lfoney Heazy Supply.
THE WEEK IN WALL STREET.

house which came into especial prominence as
a consequence OF its extensive dealings in the
market of Saturday, August %, exerted only a
passing effect upon securities prices. which in
the greater part OF the week moved under the
influence Of further aggressive operations that
carried the leading railroad shares UP on an
average OF points, with Improvement nearly
as pronounced in the chief induStrialS- The
appointment by the Stock Exchange authorities
of q committee to investigate the character Oh
the dealings that were responsible for the sus-
pension of the firm in question was effective III
encouraging speculation for the rise on the the
ory that the determination OF the men at the
head of the exchange to put an end TO the SORT
of manipulation that interferes with legitimate
speculation and frightens public operators OUT
of the market would tend to strengthen the
general position Of speculation and eliminate,
for the time at least, element in the Street
that has been perniciousy active In attacking
values through the medium Of fraudulent tactics
on the board and through the circufation OF
false reports regarding the financial position OF
various properties. In addition to the moral
and practical influence upon sentiment OF the
attitude of the governors of the Stock Exchange
the knowledge that the strongest capitalists in
the country We're carrying large amounts OF
stocks on cheap money. which they apparently
had no intention Of distributing at existing quo
tations served to increase confidence In the
belief that barring the development of condt-
tions affecting adversely the intrinsic value OF
investment issues prices would go to a hiSher
level before recording substantial decline. Inc
Improvement in values in the week was not
brought about however, by OUTSIDE deaiinss'
though there was at the close a better COM
mission inquiry for securities. The technical
position of the market and the CONSIDERATIONS
lust noted induced Wall Street to work on the
bull side doubtless in the hope of large puphc
participation in tho dealings at no remote
period.
The question naturally arises in many minds,
Will the people who are builing stocks and who
are the chief holders of securities, De aDie 10
make a market in which they can distribute
their accountso So far there has been no wide
spread public demand except that reported for
actual investment interests, and in some quar-
ters il is feared that the outsiders will not be
willing TO take stocks at the current advanced
level especially in view of the approach of the
fall election and its uncertainties The Dig men
who happen to be the strongest capitalists III
the country are the chief owners OF stochs' ana
the chances are they are not anxious to part
with their speculative holdings at the present
range of quotations. despite the fact that prices
are selling many points above the low records
of the year: but it is quite evident they Will be
willing to make a distribution on a Wide scale
if they succeed in carrying values 10 points
higher assuming they can find buyers. OR
course there has been certain amount OF SELL
ing by the so-called insiders on each successive
q dvance, but there has been no general l1qulda-
ton Though there may not be active public
demand for stocks in the near future, it should
not be assumed that market conditions Will
turn as a consequence, In favor OF the bears
Just now there is nothing upon which bear
campaign could be based. particularly as so
much stock has gone into the hands OF investors
in the last year, making the supply available
for speculative purposes unusually small The
nublic may not buy now, but in the event OF the
expected defeat Of Mr.. Bryan, which Will be
followed by greater activity in the countrys
industries, it is conceivable that the outsiders
{,7fp rtSpti in though
they may be compelled to buy at quotations
far in advance Of those now ruling. There is IN
the current market obstinate short interest
of considerable size, but its very presence at
time when stocks be carried at an ebsurdly
low price for money is an element OF strength
in favor of the advocates of better quotations.
Money is in abundance at all centres and the
demands of the interior iii connection with the
financing Of the harvests Will not bring about
materially higher rates for loans in the autumn.
unless the inquiry for crop funds should be ac-
conpaned by a full return of Industrial pros
perity 1t is not believed that business I'M
provement viii go by bounds or leaps There
is every indication of a conservative and grad
ual increase in orders from consumers, of an in
crease in railroad earnings and larger bank
clearings but there is sign OF the coming
of an industrial boom in the near future, The
best interests of the business community will
be served by slow and steady growth in the
improvement that already has set in The busi-
ness of the country will be placed on strong
basis If that of speculation in business that
leads TO strained credit conditions is kept en-
tirely out OF sight Credit facilities have been
placed in a splendid position, and the immense
supplies of money in this country, in England
and in France will be powerful factor in
storing the business equilibrium which was so
seriously disturbed by the developments of last
October, when things went to pieces a result
of overstrained credits and overspeculation in
all lines more than Of any other known factors.
Railroad earnings are beginning TO show note
worthy improvement in many parts Of the
try as compared with the results Of the recent
past. Decreases in gross from the correspond
ing time last year in the month of August We're
smaller than the decreases reported in the pre-
cedng month, while for the month of July net
returns now coming to hand present in many
instances Improvement over July. 1907, owing to
the policy OF retrenchment so wisely exercised
by railroad managers. The time will come
when as a result OF better credit conditions and
the greater confidence the public will have in
railroad securities, the railroads will be able to
continue their expansion work on large scale,
the benefit Of which Will accrue to the holders
Of railroad issues. TO the railroad employees.
many OF whom are now out OF work, and to the
country at large.
AS the bond market is a trustworthy guide in
showing the drift Of investment sentiment it is
interesting and encouraging TO note that 4
steady absorption of issues of the best grade is
underway. The offering of the Atchison As
which made last week, was heavily over
subscribed in few minutes after the books
were opened the Central Pacific bonds
selling at premium Of " per cent over the
subscription price, and the Union Pacific con-
vertible As and the refunding As In good de-
mand- Bond houses are looking forward to an
active investment movement in the bond mar
ket, anC the fact that money is easy. while
most bonds attractive. ought to bring
into the market large army Of buyers in the
course OF the next few months. Railroads can
sell their bonds while year ago they
found 1t extremely difficult to raise money on
their notes. even at high cost The wheat
harvest in the Northwest is concluded with sat-