New-York tribune., 1908-10-21
FINANCIAL AFFAIRS
STOCK M4RkET HIGHER.
Prices apparently Discounting Mr.
Taft's Election Northern Pacific
the Feature-GOld Erports
Not Likely.
Not Likely.

After q short period of hesitation and frregu-
larfty in the early trading yesterday the STOCK
market began an advance which continued Will
little interruption during the rest OF the SeS-
sion final prices showing in the great MAJORITY
of instances net gains, some of them running
TO Two or three points. The sales were in excess
of $4,000 shares, or not far short of twice the
volume of business transacted on Monday, ana
a broadening tendency was evident in the later
trading Foreign houses dealt in about l9,'"
shares mainly sales. On the LONDON ENehah%e
and in Paris the market tone was steady. but
trading was not active, uneasiness over posi-
bic prejudiciaI political developments being sun
felt The course OF the local market, IN WHICH
there was confident buying and in which profit
king sales were easily absorbed, suggested the
discounting Of the election of the Republican
national ticket The steadness of prices in the
face OF such Incidents the European war
scare, with its concomitant Of heavy foreign
selling Of American securities, has been chiefly
referable to the widespread belief that such
would be the outcome of the campaign now IN
progress; and the acCumulating evidence of the
increasing strength of Taft, as the campaign
enters its closing days, in making assurance
doubly sure naturally is taken as the basis FOR
that upward price movement known as dts
counting" the success of the candidate whose
election TO the Presidency would be the signal
for the return Of confidence in the world Of
business.
Northern Pacific was the leader in yesterdays
met. being actively bought from the open
ing, and advancing 27s points to 14JIa, the clos
ing price being the highest. The report of
coming extra dividend was again widely
rent, and more generally credited than on
occasions In the past. one reason being the ex-
tent OF the price difference between the quota
ton for the old stock and the new, the latter
being excepted from sharing in such extra
distribution. Mr.. Hills utterance on the divi-
dend subject few days ago. although not def
mite conveyed d strong intimation that the
hopes of the old shareholders were not TO be
allied: but II has all along been understood that
a difference of opinion existed in the Northern
Pacific board as to the expediency of giving the
shareholders large extra dividend. and it may
be that the counsels Of conservatism have been
overruled.
Union Pacific another Of the conspicu-
ously strong issues, rising to 1858, the high
level oT the year, which II had previously
touched in September, and closing only X under
that figure; and in the bond department the
Union Pacific convertible As were the issue most
heavily traded in. gaining nearly point on the
day. There was a good deal of discussion of the
disposition TO be made OF the Southern Pacifc's
preferred stock. which is ruling steady at
around 49, and which the management have
the right to retire for cash at 115 at any time
I'D to July !, 1910. stockholders hav the op-
tion TO convert 1t into common stock at par 1t
was learned that plan for retiring the issue
was under consideration, which did not however
include the feature of conversion into common
stock: and the surTnise heard in some quar-
ters that bonds might be offered in exchange for
the preferred issue. OF which $74, GOO is out
standing and on which dividends at the rate OF
per cent q year are paid.
There WAS continued firInness in time money
but no change in rates occurred and increase
In the demand on the part Of borrowers was re-
ported. The highest rate for call money was
lsL per cent, and late in the day loans were
made at IA ThsS probability of gold exports
became more remote. with the advance of
centime in the Paris rate on London and the
failure of The local foreign exchange market to
advance