New-York tribune., 1908-06-13
FINANCIAL AFFAIRS
STOCK VALUES DOWN.
Union Pacific and Eraes Lead the
Decl;ne-Banks Gain Cash.

S.o.r, ,,a-Let .necuiation was lifted out Of its
rut of stagnation yesterday by an aggressive at
tack 1rpon values throughout the list, the move
r,ent being followed by heavy sales OF specula-
tive accounts many of which were on stop loss
orders and by a general decentralization for
time of prices in all the leading issues par'fcu
lsrly in Union Pacific and the Erie shaFes.
plentiful supply Of new Union faclncs poiuS oi-
tbe curb that were quoted at discount of one
half Of / per cent and the financial troubles or
,he Erie were the immediate cause of the change
in the character of trading the street assuming
that the weakness in the Union Pacinc oolluS
reflected disappointing response to the pup!C
offering while it figured the troubles or the Erie
into a reorsanization of that property. A re-
organization would be q bull argument on 'llc
Erie securities. Erie is having most VeAatious
time with its treasury department because vi
,ts heavy obligations and its poor earnings, but
the fact that the big banking concern peHill't
the road is willing to advance its own funds 10
tide the company over its present dllIlculues
shows 2 remarkable degree Of confidence IN hlsh
banking quarters In the future OF the properly.
The Erie shares suffered maximum losses oI
from TO points: Union Pacihc Y. WIN Il
net loss of ga; Reading. 3$s: Great Nor'hern'
o6s: St. Paul, 32s, and Northern fachc' -
these issues among the active stocks pelhs ledu-
ers in the downward movement Nine etocNS
s,,nnlied more than two-tlirds OF the total deal-
ings which were about three times as heavy as
the total of the preceding day The decline or
course was accompanied by reports dIieC'll'7
the financial position of individuals ana illnl9'
and in the afternoon the selling was intenslhed
nv the rurnor of a receivership for big corpo-
ration which is known to be heavily overcapital-
lied and urgently In need of ready money, CLOS
ing prices were above the lowest but the mar
! ket showed absence of effective support eA-
cept in United States Steel.
According to the known movement of money
/ in the week the local banks have gained more
| than $4,000. 900 all operations In their cash
holdings. and it is therefore probable the pank
J-l,o.. rnr,Gi oral q in
crease in reserve above legal requirements. In
terior banks continue to send money TO New
| York in large amounts. The Sub-Treasury Is
! losing on its transactions with the city banks
/ and gold exports have ceased. There IS pleth-
| ora Of idle funds this centre which prom
! iees to increase until demand develops for ac-
! communication in connection with the financing
and marketing of the years harvests. and as
! consequence the outlook favors easy rates for
loans throughout the summer, with no disturb
.nce in the fall though the Secretary of the
| -T,,ea s,Iry and the banks making prepara-
tions TO take advantage Of the new emergency
| currency measure in the event Of the develop
| ,,aent Of conditions that would warrant the issu
| ance of additional banknote circulation speci-
| fed in the Aldrich-Freeland law. There does
| moi appear at present the slightest chance of
this measure being brought into practical use
! in the autumn. but bankers intend nevertheless
| 10 be prepared for an unexpected emergency
| Tba Treasury will want money from the banks
| hato-a long psrticularly as the government
| honds of 1908 will mature in August, and II is
not unlikely the banks at this centre will be
| called on to give UP the greater part or their
Government deposits. Even this loss VIII not sd-
| vance rates for money, especially as in July the
| Treasury payments to the banks will be far
| heavier from current indications. than pay
| n1ents by the banks to the Treasury on revenue
| account Government receipts from customs
and internal revenue will be light throughout thu
| summer while government expenditures as a
| result of the large appropriations made by Con
| eress will be unusually heavy. Bankers would
| welcome the development OF some factor that
| would give them a better price on their money
The noercan ntiie demand for funds is extremely
light.