New-York tribune., 1908-07-26
FINANCIAL AFFAIRS
STOCK VALUES STRONG.
Prices AdUance on ActiUe Buying
Bank Holdings Increase.


I'm the short interest in FRIDAYS stock market
strengthened the technical position of specuia-
ton a reflection of which was presented ia
the upward course of prices In yesterday
short session on the exchange Opening quota
tions as a rule were fractionally under the CLOS
ing figures of the preceding day. but there was
no selling pressure, except from the room ele-
roent and before the end of the first hour the
entire list of securities moved toward hlgher
level under the influence of covering by the
shorts and active support from the leauers OF
the buI market II was pointed out in this
column Yesterday that the decline of Friday did
not indicate the elimination of the Dull move
nnent and yesterdays operations served 10
strengthen the belief held by caretul market
followers that the big financial interests are
not vet ready to distribute their holdings. The
character of the buying in the Hartman aho
Standard Oil issues in the so-called Morgan
shares in the coppers, in Reading and IN Ontarlo
& Western suggested further accumulation
by persons who are provided with large hnanclal
resources while opinions expressed in circles
where trustworthy information may be secured
regarding market operations furnished a sood
basis for predictions heard in the street that
Barring unexpected adverse developments nigh
er quotations would be recorded in the current
week Stocks are discounting looked-for bet
ter times in the industrial world, the move
ment being founded on actual developments
along this line.
Union Pacific was taken in large blocks and
d
Smelling and the copper shares were bought
by houses that are identified with insiders in
these issues; Canadian Pacific was in demand
from sources that supplied the bull speculation
in the stock two years ago when its price ran
to the neighborhood of 300; the old gas crowd
was active in the Consolidated shares, which
ended a net gain of points; Sugar Refining
on moderate dealings gained more than
points and Ontario & Western again was
taken by houses that have been accommodating
I2,,11c %ln
stock realize the increased value of the Ontario
& Western under the control of the New Haven
and point to the fact that the option on the
New Haven's holdings Of Ontario stock, which
expires at the end of the year, is at a price
above the current quotation. The bull pool in
United States Steel common was again active
and the issue closed at a net gain Of l point
The weekly Clearing House statement showed
a further increase in cash and reserve holdings
of the associated banks, the latter item rising
So, ,1S7. $50 to S56516,2J0, which compares with
50 25s 675 in the same week last year and $1S.-
s92475 in 1906. Notwithstanding the expansion
in stock market transactions in the week loans
increased only S6233, 100
Stock pr aces are now, average where
they were year ago. At that time which was
one week before Judge Lands fined the Standard
Oil Company S29,000,000. the general level of
values was considered under the actual worth
of securities, and despite various indications in
the financial world that money rates would ad-
vance to a point in the fall that would reflect
acute stringency many operators bought stocks
on the belief that the recovery from the violent
breaks in the spring of that year had not run its
normal course, especially there was in
dication then of a collapse in the country's in
dustries On August the Standard Oil deci
sion was rendered, and securities Immediately
began TO sell off under the influence of liqui-
dation, this selling practically marking the be-
ginning of the change In Wall Street conditions
that ended in the autumn panic The banking
position was then overstrained. and trouble fol-
lowed. Stocks have recovered from the losses
suffered following the Standard Oil fine and the
financial panic The Standard OIL fine has been
set aside by higher court, the banking position
is stronger to-day than at any corresponding
time since 1894, protracted mercantile liquida
ton that generally follows panic no longer is
a menace, business failures are decreasing, bank
clearings increasing over the recent low
records, the number of idle cars is decreasing,
more men are finding employment, the prospects
favor harvests that will be worth upward OF
ss 000 000 900 and the evil effects OF overspecua
ton and overstmulation IN stocks and commod-
tiles have passed away. There are many care
full market followers who do not believe the
turn Of normal times has been discounted by the
Improvement that already has taken place in
the securities markets They believe that,
based on investment yield. on the price of money
and on the prospects of an increase in the net
earning power of railroads and industrial COM
panies stock and bond quotations are entitled TO
further enhancement
In the London market sentiment and prices in
the last week were somewhat upset by the
steady decline in British consols. which at the
close ruled only points above the level estab-
lished at the time of the Boer war. Various
reasons are put forth for the selling Of the pre-
nnier English security including uneasiness over
the situation the Balkan Peninsula, the pos
sfbilities for larger interest returns in other
curities and the old age pension measure, which
has been indorsed by a Liberal ministry and
passed in the Commons and by the House of
Lords Notwithstanding the approval of the