New-York tribune., 1908-09-05
FINANCIAL AFFAIRS
STOCK VALUES RECOpER.
Prices Up on Covering Operations
Bic Interests Bullssh.

The selling pressure that weakened Vaiues III
Thursdays market was not In evidence a' 'iie
opening of trading yesterday, while IN the couis
NJ +be first hour prices worked toward higher
level under the influence Of covering OF snorts
and buying by prominent houses The improve
ment became more pronounced IN the Subsequent
dealings. Many issues showed maximum gains
of from to 2 points, with the chief strength III
American Smelling and the Hartman shares
The general course OF prices renecteo 'he
presence on the bull side of the capitalists VINO
hsve heen supporting the market throughout the
summer and who apparently not yet ready
to distribute their holdings. AS ma'ter Oh
fact the present market is not good one ioF
the distribution of long stock, because 'here Is
no widespread public speculative inquiry ior
securities and as a consequence the holdings of
the so-called big men could not change nanos
without breaking prices to material degree.
rTbera is no market to sell on. but tne cIlleL
owners of speculative stock evidently are not
anxious to Iquidate at present quotations,
doubtless on the theory that the development OIL
fture factors in the general situation, lncludlng
business and politics, will be on lines that VIII
encourage an active buying demand for outside
account at prices higher than those now cur
rent.
This sort of argument has been successful be-
fore Stocks are in strong hands, ana reactions
similar to that which was reported on Ihursday
will NOT foreshadow a permanent lower level.
The big short interest in Smelters stock was re-
duced to a considerable extent yesterday Whlle
throughout the list the buying by traders short
of the market was the chief source of the
strength in values, especially in the Hartman
issues St Paul Consolidated Gas and the metal
shares United States Steel preferred gained
points, while the common also was strong, the
movement in the latter being accompanied oy a
report that active bull campaign "ouid pe
undertaken in this issue.
For the first time this season the local banks
lost substantial sum of money to the interior
in the current week, the excess of shipments
over receipts representing the active beginning
of the crop demand, which promises to be heavy
throughout the fall months. Seldom In their
history in recent years have the New York fnan-
cial institutions been in g stronger position to
meet the requirements Of out OF town points, IN
cident to the autumn financing of the harVests,
and weekly losses in cash. which may be ex-
pected from now on, therefore will cause no un-
easiness in Wall Street circles; nor will they
bring about high rates for funds, unless the out
ward movement in response TO the harvest de-
nand should be accompanied by big revival III
tI1e country's industrial activities.
Gradual improvement in the business world Is
looked for rather than sudden expansion that
might tax the resources OF the banks In spite or
their large accumulation of money IN their
,-auIts Fortunately. in addition to the strength
given to the situation by the large holdings or
the banks there is the prospect Of gold imports
this fall and the privilege of taking out emer~
gencY circulation, thouSh IL Is Iiot Hheiy Ii'e
necessity will arise for bringing in the precious
metal or for the issuance Of additional circuls-
tion under the Aldrich-Vreeland law.
Gold however, doubtless will be imported as
regular exchange operation, as sterling rates
under the influence Of heavy shipments OF food
products and cotton Will seek level at which
foreigners will find it convenient to settle their
debts to the United States through the rnedlunl
Of gold shipments. It is more tnan likely that
after the Presidential election the government
will make an issue of Panama bonds, but the
market will bs in a good position TO take the
offering and if IL should tend to strengthen
money rates there would be no objection on the
part of the banks, which at present are unable TO
find employment for their funds in any volume
in the regular loan market.