New-York tribune., 1908-07-29
FINANCIAL AFFAIRS
STOCK VALUES HIGHER.
Taft's Speech Helps Prices S.
Steel Earnings.
STOCK VALUES

Though there was some irregularity in the
movement of values in the early dealings IN
yesterdays stock market the undertone was one
of strength, while in the last hour the general
list moved toward higher level on an ex-
panding volume of business. Mr.. Taft's speech
Of acceptance created a favorable impression
in the financial community. and the pronounced
strength on the Stock Exchange in the final
dealings was due in great part TO purchases
bv interests who believed the conservative SEN
tinaent expressed by the candidate would tend
to increase confidence in business circles
throughout the country and add to the invest
ment buying that already has developed IN the
securities markets. In addition to the Iaft
argument" the speculative community found
in favorable weather reports from the asricult-
ural section of the country, in the declaration
of the regular Union and Southern Pacific dlvl-
dends in higher prices in the copper trade as
the result of an improved buying demand and
in the expectation of a relatively favorable
showing by the United States Steel Corporation
for the last quarter reasons for bullish atu-
tude on securities. The steel corporations
quarterly statement. which was not made pub
lie until after the close of business, furnished,
in view of adverse trade conditions a remark
ably encouraging comparison with the record
breaking figures in the same time last year,
while 1t showed improvement over the results
of the first quarter of the current year and in
dicated steady gain in the companys busi-
ness in each month of the quarter. Since the
close of the last quarter the concerns tonnage
has enjoyed a marked gain, in the first twenty
four days Of July. bookings being equiva-
lent to ~ per cent Of its capacity, against 40
to 30 per cent in recent months. 1t is sig
nifcant fact that on the latter capacity the
United States Steel Corporation earned its
dividends and had a surplus in addition in the
first half of the present year. Evidently share
holders need feel no uneasiness over future
dividends. The Erie stocks were strong feat
ures yesterday, buying being based on the
idea that the alliance between the Gould and
Hartman interests would promote Fries well
fare in the Pittsnurg district. Canadian Pa
cific Ontario & Western, the Hartman shares,
the Steel stocks and Reading were taken by
prominent houses. Sentiment in commission
circles at the close favored better prices to-
dav Foreign houses reversed their position
Yesterday and bought in this market.
An active demand for currency from the in
terror is liable to develop in the course Of the
next few weeks and in view Of this expected
inquiry for funds bankers are not particularly
anxious to put out time money at current rates
for long periods believing better quotations
will be secured when the outside inquiry for
accommodation IN connection with the financing
of the crops begins AS a consequence the chief
business in the loan market at present is in the
call department in which considerable activity
prevails Many of the larger commission
houses are well supplied with money and are
not active borrowers despite the enlarged deal
ings in securities, but in the event of a steady
expansion in stock market operations the banks
will be called upon to a greater degree than
just now to furnish the monev for speculative
transactions Much of the recent buying in
stocks and bonds has been for cash. Wall
Street houses are not carrying large marginal
accounts. and those they have as a rule, are
we'll protected. Government finances are caUs-
ing uneasiness in a few circles. where the
sumption is made that there viii be no improve
ment in federal revenues. though in govern
ment quarters no alarm is expressed over the
large deficit on revenue account in the current
month, Treasury officers finding in the situation
and outlook nothing warrantng alarm. The ex-
cess of expenditures over receipts far in July
amounts TO than S23 600 600 The Treas
ury's available working balance is In the neigh
borhood of S65, 900, but the government has
in depository banks to tine credit Of the Treas
of the United States than $117-
100000 which he called upon at any time
without causing disturbance in the money mar
ket. Government expenditures always are
heavy at this period of the year. and in the
present case they appear unusually large ow-
ing 70 the falling off in customs and internal
revenue receipts. The last named items have
been affected by business depression but no one
who has taken the time to study the conditions
governing the industrial situation in this conn
try believes that SO called hard times are to
run on Indefinitely. There many encourag-
ing signs of Improvement in the business world
and gradual restoration of normal conditions
is foreshadowed. Under the terms of the Span
the Trea sury has the privilege of continuing
them or refunding them IS. and as there is
no need for additional per cents the mar
ket Mr. Cortelyou has decided to let the 3s
run along until the situation is more favorable
for their redemption.