New-York tribune., 1908-06-11
FINANCIAL AFFAIRS
STOCK T4LUES TP.
Prices Strong on Light Trodlng-
Sterling Eachange Declines.

Transactions in yesterdays stock market Wille
a trife heavier than those recorded on Iuesoay
showed a total of less than 100000 shares, WIN
seven issues s1lpplving more than tilree-QuarterS
Reading, Union Pacific and United states steel
being the leaders. Price movements were uh-
important and represented nothing beyond Inc
varying fancies of board room traders who d'd
not operate so extensively to prevent them
from spending the greater part of their time in
discussing the probable outcome of the Chicago
convention. Indeed, there more talk than
business the exchange, spectators apparent
ly being unwilling to engage in active opera
tions pending more definite information regard
ing the character of the planks in the Repub-
lican and Democratic platforms As rule
quotations firm. with small net gains 1t
the close Amalgamated Copper. Anaconda. Mis-
souri, Pacific. Union Pacific and United States
Steel enjoying the greatest gains on buying made
up chiefly of covering of shorts. The copper
shares were helped by signs Of Improvement in
the copper trade. while United States Steel COM
mon. which recovered its dividend in the early
dealings. was bought the belief that the cut
in steel prices would be effective in stimulating
a more active demand for finished steel products.
Money rates ruled at an easy level and sterling
exchange declined to a point that checked gold
export engagements 4 reflection Of recent
changes in the money situation and the decline
in the demand for accommodation from mer-
camille sources is presented in the compilation
of the Controller of the Currency showing the
condition of The countrys national banks under
his recent call. Compared with year ago loans
have decreased s102, 900 and cash holdings
have increased s159 100000, of the latter item
S69. 100000 being outside New York
The indicated success of the Union Pacific
bond offering. following closely upon that of the
PENNSYLVANIA bond subscription. shows vast
Improvement in sentiment in investment circles
and foresiadoWs a good market for railroad
Curities of merit. There is a large amount If
money seeking Investment in solid railway mort
gage issues and of the securities placed within
the last few years none have been better than
the PENNSYLVANIA and Union Pacific bonds. a re
Election of which is found in the demand for
them in foreign markets where great conserva-
tism and caution always is exercised in the pur-
chase of American investments. The Union Pa
cific has done enormous amount Of financing
since June, 1901. With per cent securities. and
II has accomplished it in such a skilfu manner
that eventually the S220, 200 600 bonds that have
been put out from June. 1901 TO the close of the
last fiscal year will he reduced to SS8.oGOO0
with interest charges of $3.50 600, against orig
ina fixed charges Of SSS0o,o 600. In 1901 the
company issued 100000.000 convertible per
cent bonds in 1904 S4+5000.0OO Oregon Short
Line refunding Is were put out. and in 1907 s75-
600 900 convertible As sold but of this total
only S120,000,000 is now outstanding. the balance
having been converted. In the time of the COM
pany's financing just referred TO the gross earn
ings of the road have increased 20 per cent, net
earnings rs per cent and surplus after charges
1SS per cent, the balance after interest payments
a. the close of the companys last fiscal year
amounting to more than s36.000.000 The new
S50o00.00o issue may be increased to 100000 900
when the security for the mortgage shall be
extended to take in all the lines covered by the
present first mortgage. which will be refunded
by the authorized issue. and ultimately the
$50. 100000 bonds Just announced and the bal
ance authorized will become the first mortgage
on the entire Union Pacific system People who
are looking for long time investments will nal<,
mistake IN buying the Union Pacific As
The demand abroad for American food prod
ucts and cotton continues light, as compared
with this time in the last two years while there
also has been a material falling off in foreign
buying Of American manufactured articles The
European buying power has been curtailed by
conditions unlike those that are responsible
for the falling off in trade activity in this coun-
try, but this situation bears none of the ear
marks Of permanency and ought not to discour-
age people who are anxious for return of busi-
prosperity. In the month of Nav there
a falling off in the exports of domestic
products from the United States to the value Of
*13.3S0,185. comparison being made with the
corresponding time year ago breadstufs, cot
ton. meat and dairy products contributing to the
loss. II is probable the full statement of for
cign trade. which will be issued i'm few DAYS
will show a large decline both in general ex-
ports and imports. while it is more than likely
similar trade reports will be presented for sew
eral months TO come. Behind the unfavorabls
features in the situation there is returning con-
fidence in investment and financial quarters
There is recognition by corporations and in
dividuals of economic laws the obeying OF which
will to stimulate business We have a
currency measure that will ward off money
panics, the prospects Of bountiful harvests are
bright and there is a practical surety of the
continuation OF the Republican party in power
Weak spots gradually will disappear.