New-York tribune., 1908-06-04
FINANCIAL AFFAIRS
STOCKS CLOSE LOWER.
Periods of Strength Follosred by
Final Recession Union Pacific
the Leader.

Stock market trading was made up in great
part of the operations in Union Pacific Reading
and United States Steel common, in which lower
prices were recorded the days movements
The entire list of active issues. with the excep-
ton of Chesapeake & Ohio. ended at net losses
after irregular fluctuations final weakness COM
ing after period of strength. in the course OF
which Union Pacific advanced to 150 following
an early decline TO 1863 from the closing Of the
preceding day at 1875. On the various declines
there appeared to be fair support though in the
late recession the buying chiefly for the
shorts especially in the case of Union Paclhc
which came out in large volume, selling doubt
less being based on the theory that the success
full financing of the company's bond issue marked
the end of inside efforts to place the stock at
higher level. II was more of a Union Pacific
market than anything else, the dealings in TINS
stock amounting TO about one-third of the total
operations in ali issues. Commission houses as
a rule were sellers, many of their orders COM
ing from spectators who were alarmed over the
cut in the price of bar steel and the possibility
of wholesale reduction in prices by the United
States Steel Corporation in response to the ef-
fective competition of smaller concerns that
have Judged to good advantage current economic
conditions. Economic laws must prevail in the
end and stand pat policy that is not sup
ported by ANYTHING more than ones desire can
hardly be successful. Lower prices for steel
products will serve stimulate the demand, and
according TO the views of the best posted men in
Corporation in reducing the quotation on bar
steel will be followed by cuts in other directions
that will lay the foundation for a revival of
activity in the steel industry. Money contin-
ued easy, while conditions in the foreign ex-
change market at this centre and at Paris indi
Gated the probability of further shipments or
| gold to Europe
Western points report a better demand for
money from mercantile sources and interior in
| stitutions making smaller shipments of cur
rency to New York. The movement of money
| toward this centre generally begins to diminish
at this time of the year receipts gradually grow
| ing lighter until the point is reached where New
| York sends out more currency than 1t takes IN
| as a result of the financing of the harVeSts
| There is at present reason to suppose the
| harvest demands will not be heavy this year
And the fact that business idleness throughout
the country has caused an enormous accumula-
ton of out Of town funds at New York suggests
the probability of extremely heavy losses TO the
local institutions when the interior banks are
compelled TO recall their balances From now
on the general tendency in the time money mar
ket ought to be in the direction of higher rates.
but there appears little chance OF a material
change in call loans in the summer months un-
less speculation on the Stock Exchange should
continue its current rapid pace, something which
is not at 81 likely in view of the many uncer-
tainties in the political and business situation
In the month of May there was decrease in the
amount of money in the country outside or
Treasury holdings of s50,111.S12, due in great
mart to gold exports and redemption of national
hank notes but compared with year ago the
amount of money in circulation on June L
showed an increase of S96399,72O. due to the in
crease in the amount of gold in the country ana
10 expansion in national bank note circulation
Including the money held in the Treasury as
government assets, the total stock or money In
The United States is 1882 932, III, equivalent TO
s34 Is per capita. With our constantly increas-
ing supply of gold through the production or
our mines we have all the money We need for
legitimate purposes and if our currency system
were reformed on a scientific basis money move
rnents would be SO governed as 10 make lmpos-
sible violent fluctuations in rates or stringency
AT times when there Is the greatest need for
funds.
The successful efforts of some railroads to off
set the influence of lighter gross earnings upon
net returns through reduction in operating eX-
penses is reflected in the report OF the New
York Central for the month of May, the figures
of which We're received yesterday. In spite of
a decrease in gross of S1257.007 the company
was able 10 show gain in net of $43,203, while
the Lake Shore and other companies belonging
10 the New York Central lines also, as a result
of decreased expenses. made far better ex-
hibt in than had been expected. The Lake
Shore lost 1904 977 in gross and only s4,194 in
ar