New-York tribune., 1908-07-07
FINANCIAL AFFAIRS
VALUES HIGHER.
Prices ShozC Marked Gains on HeaU-
Ter Business Money Rates Easy.

number of important Wall Street houses
that have a large speculative following were
buyers of stocks at the opening yesterday, tnelr
purchases attracting more active volume Oh
trading than was recently recorded while they
also were responsible for initial strength, when
was we'll maintained throughout the nVe hours
of husiness Profit taking by traders on the
advance disclosed the fact that the markets
mower Of absorption greater than commonly
had ,een s,,pposed and 1t likewise disclosed the
fact that commission houses were bare OF STOCKS
and that customers showing an increased
disposition to get into the market again Inc
DAYS transactions were large only by cohhpaIl-
son with the record low levels Of last Week.
but the increase in the operations neverthe-
less was considered hopeful sign OF Dettef
business to come, and as a consequence more
bull talk was heard after the close OF business
than had been noted in many days past Inc
buying power was we'll directed though 1t was
scattered and the efforts to put up the lead
ing speculative favorites. particularly American
Smelling Reading and Union Pacific, met with
no opposition from traders, Who as a rule' ioI-
lowed the advance the only important selling by
the latter being long stock on WHICH Idlr pIolllS
had accumulated.
Substantial interests were behind the move
rnent that carried prices from l to points
above Fridays closing, but whether or not they
merely were operating for a turn or for sus-
tanned speculation for better quotations was not
anparent in their dealings. American Smelling,
which gave signs of life in last weeks closing
was the leader in the early market but Union
Pacific subsequently became the most active
ISSUE though its net gain was less than that IN
the first named stock, which closed up points,
against o6 for Union Pacific. st. Paul, Read
ing and Northern Pacific also were features
Buying in the late dealings was stimulated by
the reported reduction in the countrys surplus
of idle cars of more than $4,000. making total
reduction since the maximum was reached. IN
April of 100000 cars. The May report OF the
New York Central lines. showing the conversion
of large decreases in gross earnings into only
small losses in net, and reports from the west
Indicating average crops this year In spite OF
damage by recent floods, also encouraged optf-
rnistic sentiment on stocks. Last prices as a
rule were at near the best
The withdrawal of $45 100000 of government
funds from the depository banks of the country
under the recent call of the Secretary of the
Treasury will leave more than s100OOO.0OO fed
eral money in the hands of national banks. and
if further reduction of these deposits should
be found necessary the monetary situation would
not be materially affected, owing TO the enor-
nous holdings In the financial institutions
throughout the United States. The local banks
and trust companies have tremendous cash oal-
ances for which at the moment they can ma
no use even at ridicuously low rates on long
time commitments, and Notwithstanding the
payments that will be made to the Treasury the
amount of money in the banks at the end of
the current month doubtless will show an ap-
preciable gain over that reported IN last week 5
bank statement on expected heavy excess fed
eral expenditures over receipts and additional
shipments of currency from the interior. The
outward movement Of money from New YORK
will not begin in any volume until the latter
part Of August, and then the shipments will not
be heavy enough TO cause an important advance
in loan quotations.
The idea that the Secretary of the Treasury
will make arrangements to pay off the gov
ernment bonds of l90S-'1S has few supporters
on account OF the relatively low available cash
balance in the Treasury and owing to the terms
of the act of June 13, 1898 under which the
bonds were issued which provide that the bonds
may be redeemed at the pleasure of the Sec
retary of the Treasury after August l. 1908,
and payable August ], 1918. The fact that
there is much money in circulation sug-
gests the probability that the Secretary will
take no action of any kind in the near future
on these so-called loan issues
There is more money in the form of circulat-
ing banknotes than the needs of business re-
quire, reflection of which is presented in the
large redemptions Of these notes reported from
Washington, which in the last month We're
heavier than in any preceding month in the his
tory of the national bank Since the first
of the year the redemptions of banknotes have
amounted TO s243 500, 900 On the other hand
the retirement of notes by the deposit of lawful
money has not been especially heavy. In view
OF the great supplies of money in all parts of
the country ii is reasonable to believe that
within the next few months capital will seek
more active employment in the securities mar
kets And il is unlikely that with the price of
money so much below the return on stocks and
bonds bear spectators will be BILE 70 conduct a
successful campaign against values, unless they
should be helped by the development of condi-
tions of a most alarming character. OF the
latter there is no indication in the current ccurae
of events.