New-York tribune., 1908-08-28
FINANCIAL AFFAIRS
H4RRTM4N SH 1RES CP.
General Market Strong, 7c'th Ne7c
High Yearly Records-Money
Rates Easy.

Stock market values moved toward hlsHei
level in the best part of the uaE Oh idt
volume of business. trading showing an eNpaiiu
ing tendency from the start, Including LOT inc
f5rs4 rirna since last Friday public buying orders
The prompt action of the Stock Exchange @u-
thorities in appointing committee 10 il'es'l-
gate the sensational performance OF the market
ON SATURDAY. and the elimination of the Brown
firm without the accompaniment of trouble IN
other quarters of the Street have exerted re
assuring effect upon the outsiders, "hlle Iiles
have encouraged a more bulish attitude on the
part of the trading element, the latter peihs
especially impressed by the reflection or banking
support presented in the course Of values on
Saturday when the bear clique endeavored to
break the market The floating supply OF STOCK
available for covering purposes Is HSht Secufi-
ties are in strong hands and until the big men
ma Ike IIp their minds distribute their holdings
il is not likely that the short side of speculation
will WELD substantial profits. There was a great
variety OF buying in the day, some OF IL repre-
senting short covering and some or II renewed
activity on the part Of the bull interests VINO
for many months have been bahind the market
the operations of the latter being especially pro-
nounced in Southern Pacific. Union Pacific.
Reading and United States Steel The general
market presented a strong contrast 10 that "l
the preceding day, when business amounted 10
insignificant totals. trading increasing from hour
TO hour on a movement of values that landed
some issues at the best prices of the year. The
advance in Southern Pacific was accompanied
bv report that the dividend would be increased
10 Z per cent; also that the Southern Pacific
would take over the st. Louis & San Francisco
from the Rock Island. The Frisco company
was thrown off by the Atchison and bought by
the Rock Island at a high price proving an
unproftable purchase for the Rock Island Com
pany. The Southern Pacific could use the
Frisco. but it is not likely that 1t will pay
much for it. Union Pacific enjoyed a maximum
gain of 45s points heavy dealings, the char
acter of the trading suggesting one of the old
time bull movements in the issue American
Smelling gained 155. Reading 41s United States
Steel IL and Southern Pacific 3A- The general
list showed gains OF from 1 to : points. Deal
ingS in bonds were heavy.
The advance in foreign exchange rates in
Wednesdays market and yesterday was due TO
q speculative covering movement rather than
to any change in conditions affecting the actual
postion of the international exchange market
The general tendency of sterling rates Will be
in favor Of this centre for many weeks TO come.
and though money rates here are at an alb
normally low level, with no prospect Of material
Improvement in the course of the autumn
months. it is probable that this country Will
import gold from Europe in settlement of trade
balances. Money, of course, moves to the point
where il be most profitably employed, but
the difference between local and foreign loan
quotations is SO small that 1t VIII require some
thing beyond the price of money to bring gold
to the United States. And this factor will be
found in actual exchange conditions. irrespective
or for funds. Exchange viii decline
under the influence of heavy offerings of grain
and cotton bills and though we do not need an
increase in our supply OF money through i'm
ports Of the yellow metal the chances are that
we shall be compelled to accept payment for our
balance on merchandise account in gold, unless
conditions should arise abroad that would make
IT profitable for this country to lend its credits
in European centres. There is much money
in the Bank OF England and in the Bank OF
France that advance in discount rates by
the two institutions appears out OF the question.
but it is possible that the necessities of Ger
many, Austria and Russia may reach proper
tions that will advance the price of bar gold
in London 10 level that will prevent shipments
of gold to the United States. Austria has been
drawing gold from London, while Paris also has
been a competitor in the British market for open
market offerings Of the metal received from
South Africa, and though France does not need
the metal on it's account, 1t may be forced
to supply a large amount to Russia through
the medium of another extensive ST. Petersburg
loan.
The Bank of England, in its weekly return
published yesterday. showed higher percentage
of to liability than reported at this time
In many years The bank is In stronger posi-
ton in its general items than ever before in
its history. while the thing may be said
of the New York banks, which hold a lir,e
proportion of the entire amount of money in cir
cuiaton IN this country. Big cash holdings In
London. New York and Paris will be an in,-
portant factor in encouraging return OF
NAL times IN business circles in all parts Of tho
world and the monetary situation At the worlds
three chief capitals should not b lost sight OF