New-York tribune., 1908-07-19
FINANCIAL AFFAIRS
STOCK VALUES HIGHER.
Market Gets Support from Prom'-
nent Sources Holdings
Increase

-
the two hours of trading yesterday, advances
running from good sized fractions to 2 per cent
on a moderately heavy volume of business Ac-
tive buying in the bond department and asgres-
sive bull operations in United States steer COM
mon were effective factors in changing the po-
sition of operators who put out short lines Fri
day afternoon in the expectation of reaction
arv movement yesterday, while they also induced
some commission house buying Of the general
list United States Steel common sold at It's
best price of the year. 1t was quite generally
thought Morgan interests were factors in the
advance. and. of course, the mere suggestion
that they were taking an active part in the
market encouraged an extremely cautious atti-
tude by traders who would like to take a posi-
ton the short side OF speculation. AS mat
ter of fact, however. there are not many OPP
orators who any profit on the short ac-
count except on quick turns. Union Pacific,
American Smelling. Consolidated Gas and St
Paul in good demand, while the general
inquiry for stocks well distributed for
half days session. Commission houses
rying much more stock than a few weeks ago.
but they still not operating in this respect
anywhere their capacity. though they have
hopes of a gradual increase in outside inter-
est in the market, owing to the position of the
larger interests. the in the money market
and the signs Of better conditions in trade cir
cles. Bank statement figures yesterday showed
an increase in cash in the statement of averages
of s1o,103400 and gain in reserve above legal
requirements of S5.675, $50 to s52, 400 which
compares with s9,0SS,075 at this time last year
and s19,391, 900 in 1906. Actual holdings Friday
showed cash gain of little than s5,ooo-
000 Loans increased sS,97550O and deposits in
creased s17, ,713,o00
Strength in the stock market an expanding
volume of business in the last week has been
effective in encouraging most optimistic senti-
ment in Wall Street commission house circles
many houses that few weeks ago were inclined
to advise against the purchase of securities now
going on record as firm believers in further i'm
provement throughout the list. Change in SEN
timent has been helped by the visible signs of
better conditions in the trade world and by
active increase in the demand for bonds for
home and foreign account large amount of
exchange recently has been drawn against pur-
chases of american securities by interests
abroad. This movement WILL 1t is generally be-
confident the business and political out
look here. their bullishness doubtless being due
TO good missionary work by prominent interna-
tional houses that have on hand a large number
of securities for which they naturally are anx-
ious to find market American railroad bonds
are cheap at current prices And they are bet
ter to hold than money at present, the rate
on money is far under the interest return on
mortgage issues. The railroad rate question is
occupying all the spare time Of the railroad Of
fcers but Wall Street is not overinterested in
the problem and 1t is not likely that it will be-
come important factor in stock market trad
ing. The railroads Will not go TO pieces and the
country will not stop if rates not advanced.
notwithstanding the opinion Of Mr.. Hill and Mr.
Hartman to the contrary. The railroads. to be
sure. have suffered heavy losses as the result of
business depression, but the greater number Of
roads making enough to pay dividends, Mr..
Harrman's Union Pacific for instance. still en-
joying profits large enough to warrant the tidy
10 per cent the common. Higher freight
rates at this time would not tend to stimulate
increase in traffic. Business in all parts Of
the country is beginning to revive, and at e.
mote period earnings will reach the records
made in 1907 and 1906 when rates no
higher than they now. while in some
they lower.
A reflection of reviving industry and trade is
found in the increased demand for funds in
terror points. There expansion in ship
ments Of currency last week from this centre to
out town cities to the extent of so per cent
over the preceding week on the direct movement
of money. The interior inquiry for money will
increase from now on, and fortunately the con-
dition of reserves here will warrant heavy with
drawaIs without imposing great burden on
local borrowers on Stock Exchange collateral