New-York tribune., 1908-09-03
FINANCIAL AFFAIRS
STOCKS CLOSE WEAK.
Prices Strong on Early Dealings
Southern Pacifc's Nezo High
Record.

In the early dealings In yesterday ; stoch
market values moved toward higher level IN
the greater number OF shares under the in
fiuence of further strength in the Hartman
issues Southern Pacific made another new hlgh
record Erie was in demand, Baltimore & Ohlo
reflected the effect of the Hartman influence,
Illinois Central moved up and Union Pacific. to
use the expression heard on the exchange, MADE
the bears tired. The bears naturally are de-
pressed over the course Of the current so-calleo
Hartman market and according to present III
dications they will suffer from the same weary
feeling for weeks to come, in spite of passing
reactions The market reacted yesterday In
the late dealings but the movement brought
little encouragement to the advocates OF lower
prices for the good reason that 1t was known
there had been no change in the attitude OF the
chief interests behind the market and no change
in the general situation that warranted the de-
yeloprnent of a protracted downward swing De-
clines in the last hour were helped by the weak
ness in American Smelling but the chief cause
of the setback was found in the overbought
condition of the market, which Influenced many
holders of long stock to get out of their con-
tracts. The American Smelling Companys
shares were affected by the concerns poor re-
port of earnings for the last fiscal year and by
the fact that the American Smeiters SECURITIES
Company was compelled to use most OF ITS sur
plus to meet dividend payments, which means
that the American Smelling Company, when
guarantees the preferred B stock of the Smelt-
ers' Securities Company, will have to add that
dividend to its fixed charges unless there shouIo
be a striking Improvement in the earnings OF
the Smelling Securities Company The low
price of silver does not encourage the idea of
much improvement in this direction for the
present at least. While the Hartman shares
and St Paul retained a part of their early
gains in final prices the greater number OF Is
sues closed at small net losses, Amalgamated
Copper and American Smelling being the chle1
sufferers
On their operations with the Sub-Treasury
the local banks have gained far in the cur
rent week upward Of S6OOOO0 while, notwith-
standing the fact that this is the period of the
wear when receipts of currency from the inte-
rior generally are light, the city financial IN
stitutions have added materially to their cash
resources on the out OF town movement, and
unless there should be a marked change In the
course of currency to-day and Tomorrow the
weekly bank statement should show further
increase in lawful money holdings. Domestic
exchange at Chicago on New York does not yet
Indicate any great demand for money from TINS
centre in connection with the financing OF the
crops The interior banks have on hand, out
side of their New York balances, large amount
of money but 1t is probable they will be COM
pelled to withdraw funds from here before the
end of the present month. though 1t is not
likely the drain upon the New York banks
will be heavy enough TO bring about an impor-
tant advance in rates for loans. Time money
is extremely easy for all periods. while the de-
the relative activity In the stock market. and
from current indications there will be no big
fluctuations in this department OF the market
in the fall unless the needs of the mercantile
community should become urgent enough to
use up the supply of time funds. There is no
prospect of an extensive mercantile demand for
accommodation, as the countrys industries,
while showing improvement, are not moving on
lines that suggest an immediate revival OF that
sort of business activity that calls for extended
assistance from the loan market. Business con-
ditions sound, credits are stronger than they
have been in years, and confidence is growing
in business circles but consumers are moving
cautiously. and a. consequence producers are
not enlargng their operations 10 any material
degree The feet that our industries are NOV
ing along quiet lines does not reflect any intrfn-
sic weakness in the general situation
Improvement is reported in the volume Of ex-
ports of grain and general merchandise from
this port and in the course of the next few
months the outward movement OF food products
and cotton will be heavy. Expectation in for
eign exchange circles of heavy exports is re-
fected In the accumulation of large short in
terest in the sterling market, which at the
moment serves to maintain rates at a compare
.tyely firm level as a result of covering opera
tions on the slightest appearance of weakness.
That sterling will seek lower level in the fall
Is admitted by foreign exchange bankers, and
though this country will not require gold i'm
ports as far as the money market is concerned,
n is quite probable shipments Of the metal will
be made entirely as a consequence of exchange
market conditions With exchange in favor of
this country with enormous amount Of idle
money in the banks and with the underlying
conditions affecting the industrial situation
stronly ii is not surprising that stocks are not
rtref in