New-York tribune., 1908-07-21
FINANCIAL AFFAIRS
STOCK VALUES. STRONG
Increase en- Outside Demand-In-
terror Exchange Declines.

There was a material increase in the buying
power in yesterdays securities markets, both IN
shares and bonds, interest being well distributed
throughout the list. with transactions In stocks
rea ching nearly million shares and In bonds
the par value of more than S4,3Oo,oOO. Prices
strong at the opening. and moved toward
higher level throughout the five hours OF busl-
ness. net gains at the close running from to
points in the active list and to more than 3
points in some Of usually inactive issues. South
ern Railway preferred. for instance, ending the
day 3L points above Saturdays final quotation
In the so-called specialties the demand was far
better than recorded at any time in the recent
past. while in the prominent active securities an
increase in dealings rejecting a substantial in
crease in outside business was reported. Ihe
Hartman shares including Baltimore & Ohio
and the Erie issues, were features that helped
other stocks, while the same thing was true OF
United States Steel common, in which powerful
financial interests again were active buyers
The railway equipment stocks the coppers'
Great Northern, Reading, Atchison Ontario u
Western and Colorado Fuel and Iron enjoyed
marked improvements, but the gains throughout
were general and the general movement was
free from ordinary manipulation. The best story
of the course of the trading will be found In the
table showing the detailed operations. The sig
nifcant features of the business were the gain
in commission house buying the ability or the
market to absorb realizing sales and the conf
dent sentiment expressed in all quarters over
the industrial political and hnanclai future.
Outside the stock market the most important
DEVELOPMENT of the day the break in Chi
caro- exchange on New York, the rate declining
70 a discount level for the first time since last
years panic. Chicago exchange was quoted at
10 cents discount. comparing with oo Genus pre-
MUM two months ago. This movement 1ndl-
Gated the beginning of the interior demand Tor
funds and 1t reflected in hardening ten
dency in time money rates. better demand
for money suggests better conditions In the pusi-
ness world and it therefore Is Dull argument
On stocks Wall Street accepted IL as such yes
terday.
rraders who sold Union Pacific when the issue
reached 153 did so on the theory that it was
within a point Of the price at Whlcn coh-
version could be effected at profit but IN their
calculations they failed to take into account the
fact that while the stock had been advancing the
honds also had moved to higher level. Traders
assumed that they could go short OF the STOCK
without danger by buying the conVertlple pohos
AS the bonds stand to-day they CANNOT pe CON
yerted into stock at profit with the STOCK sell
ing under 1914 except in the case OF those VINO
ho,,ybr the bonds at SO. and as these bonds
have appreciated materially, about per cent, IL
is not likely that holders will sell them at the
present time, especially as the greater part VI
tbe S75 100000 issues is we'll distributed In in
yestors' hands 1t is interesting to note that
,be Union Pacific convertible bonds are now
selling within points of the company hi 81
refunding 4s. Bonds in general were IN sooo
demand yesterday, both on the Exchahge dno
Va
business encouraging the expectation III ooho
houses of q much broader market for mortgage
issues for the rest of the summer. Ihere Is
so much Idle money in the banks and trust com
panies while there many signs OF the de-
veop,nent of factors that will tend to strengthen
the conditions upon which bond values are
based that a rapid expansion in dealings in Is
sues of this sort would not surprise the careful
student OF financial and investment affairs, ana
IL bonds become more active stocks Will follow,
narticularly as some of the strongest interests IN
fhe Street are working actively for higher prices
The persons who rescued Union Pacific from its
,rouhles of 1893 and placed the property a
.oud physical and financial basis, finally
anliny the stock to go into the 10 per cent col
curities and as they have been successful in the
,.s, I'm advancing prices il is not improbable that
,b.ir nresent efforts will bring equally pleasant
| results
There are many market Inconsistencies as far
~ quotations are concerned, but these promise
:. - adjusted Either some stocks too low
- o,sa others are too high. AS a matter of fact
s,,re are q number of good stocks that are sell
; ,,nder other issues that are intrinsically less
,a1,ah,e Take New York, Ontario & Western for
,,.nca This issue is selling in the heghborhood
:, ,o aud though il is safe dividend payer II Is
,.,ixelv lower than many issues the yield upon
which is smaller while II is only a few points
higher than some shares upon which no divi-
dend st all Is paid Erie drst preferred sells