New-York tribune., 1908-12-24
FINANCIAL AFFAIRS
STOCK PRICES STRONG.
CheaD Price Shares again in De
mand-I0ney Market Firm.

Stocks were strong and active throughout the
FIVE hours of trading, though the Improvement
recorded was not so pronounced as IN the pre-
ceding day, when enormous snort interest,"
had TO be covered. The professional element
continued 10 work the long side OF the &C
count while commission houses were active
buyers especially in the low priced issues winch
according to common report. are moving 10
higher level under the influence of operations py
powerfuI interests who are supposed TO be pu!-
irg the shares Of the minor railway properties in
expectation that the companies will be taken
over by larger roads. Among the interesting
features Of the market were the increase IN
dealings in the shares Of properties that Tor
many months have been inactive and the enortS
Of certain brokers 10 develop business in stocks
of this character but outside Of the transactions
in this department Of the market there was a
well distributed volume OF trading In the Lead
ing shares at advancing prices The idea IN
the Street that Mr.. Carnegie is backing the
bethlehem Steel Company responsible for
activity in the stocks of the concern, the com
mon advancing points and the preferred
noints The Bethlehem Steel Company has
wide field. and there is no reason why its securl-
ties eventually should not sell at higher level,
but it IS absurd TO suggest the idea that Mr
Carnegie is anxious to see the company sue
ceed at the expense of the United states steel
CORPORATION, Of whose bonds he is the chief
holder. The Steel Corporation will continue to
make money and pay dividends while the Beth
lehem company VIII give a good account of
itself, irrespective Of alleged Carnegie support
The preferred stock OF the latter company Is be
ing accumulated by good class Of buyers. The
general market closed at near the best prices
Of the day, with net gains running from Is to
Az per cent IN the leading active issues, Brook
lyn Rapid Transit enjoying the chief improve
ment. The Wabash issues were weak eXcep-
tions. declining realizing sales, the refunding
4 per cent bonds being especially heavy.
Money market conditions do not suggest the
development IN the near future Of disturbance,
but general indications point toward the main
tenence in the balance Of the year and early N
the new year Of the firmer tendency that de-
veloped a week ago. The relatively low posi-
tion Of the reserves Of the Clearing House banks
may be reflected III mild furry in the call
department Of the market in the last week OF
the year though the financial institutions al
ready have made their preparations in great
part for the handling Of the heavy January in
terest and dividend disbursements. an indca-
ton of which recently was presented in active
calling Of loans and extensive stock market
liquidation on accounts that had been carried
on borrowed money. At the moment the trust
companies are supplying. the chief part Of the
money for stock market borrowers, and 1t is
quite probable the banks will show in their
weekly statement OF averages further reduc-
ton in loans and deposits, large enough, per
haps, to bring about some improvement in re-
serve which last Saturday stood at Sl0ocoOOO
Interior exchange on New York in the first part
of the new year doubtless, as usual, Will turn
heavily in favor OF this centre Wflle II IS prop
able there soon will be remttanCes to this point
from out Of town banks in connection with
their allotments of Panama bonds, which were
paid for by the local institutions. The general
outlook in the money market is encouraging for
the borrower of funds in 1908 though If bust
ness increases in the volume expected the level
Of rates will rule well above the range Of 1907,
which. with the exception Of the first few weeks
OF 1907, has been the cheapest on the general
average in the last five years
According TO the character OF the current sup
port in the stock market, the same interests
who started the bull movement in the first part
Of the summer have plans in view for further
enhancement in values and while there doubt
less will be periods Of sharp declines. the gen
eral level OF prices ought 10 make new high
record in 1909. It is confidently believed that
Union Pacific. as 10 per cent stock. will sell
at 200 or better: a much higher price is
Dected for Southern Pacific, New York Central
St Paul and the Hill shares, and though tariff
agitation may hold the Industrial issues back
there is reason at the present time for bear
ishness these securities for the long pull
The cheap shares have enjoyed extensive i'm
provement in recent weeks. but the belief of ii
material betterment in their actual worth is in
ffuencing their purchase at the current range by
many careful market operators These stocks
were heavily bought at last years low figures
Ey the public and the greater part of these
holdings have come upon the market a realiz-
ing movement. their present ownership being In
quarters where large market operations are
conducted. Among the fractions Brooklyn
RA1ad Transit sVRsa<a "a be q prtEa4 -fAyoEitA