New-York tribune., 1908-07-24
FINANCIAL AFFAIRS
STOCK VALUES STRONG.
Active Demand for Borads-Time
Money Firneer.

An active commission house demand. for
stocks and heavy investment buying in the BOND
market were important factors in advancing
prices from 1 to points in the forenoon deal
tngs and though active realizing sales In the
last hour cut down the early Improvement the
general list closed with net gains in the greater
number of issues traded in. Operations in rail-
WAY mortgage issues heavier than on any
dav since Nav g. while transactions in shares
ran close to uhe years best daily total. repre-
senting according to the heads OF the leaolhg
Wall Street houses, the best sort of buying
including purchases for foreign account The
latter operations were reflected in a heavy de-
mand for Ontario & Western, which at one
time sold above 43 and which was IN active de-
r11and by London shorts who for a number of
weeks have been opposing the advance IN the
issue 1t is known that the New Haven hold
tngs of Ontario & Western are not a free asset
in the company's treasury at the moment, as far
as its right TO part with them is concerned,
another road, recently pointed out in The
Tribune, having option on the stock that
does not expire until the end of the current
year And il also is known that this option
calls for a price in advance Of that the New
Haven paid for it's control of the Ontario COM
pany which was several points above the pres
ent quotation. The minority stock is being
accumulated and this in itself accounts for the
inward movement in the security, though the
issue could reasonably be advanced on its in
1yestnent value. The Hartman issues, the rail-
vav equipment shares, st. Paul, Great Northern.
United States Steel eommon-the last named
making a new high record on the current move
ment-and many OF the so-called speclaI'les'
including Consolidated Gas and American Sugar
Refining contributed to a. good part of the total
expansion in dealings. and to the price en-
hancement. but the entire list however, pre-
sented in it's general course the effects OF Wen
directed bull transactions. The advance at
times was too fast to suit the ideas OF the con-
servative Wall Street element, particularly as
there were indications that the small spectators
were operating on their profits. The support on
the afternoon realizing reaction came from the
houses that have been the heavlst buyers IN
the last few weeks, and traders though predict
ing an active selling movement to-day by people
who had large paper profits did not care TO
go home with extended short commitments
So far in the current week the local banks
have gained on their operations with the Sub
Treasury upward Of 100000. and while there
has been a moderately active out of town move
ment of currency indications point toward a
further addition to cash holdings in to-morrow's
Clearing House statement. Exchange at interior
points New York is moving against TINS CITY,
but II is not likely the demand for FUNDS from
the West will reach important proportions until
the middle or end of August, when harvest re-
quirements will compel Western banks to with
draw their balances here Interior exchange
has turned against New York, and foreign ex-
change Is moving more in favor of this centre.
As a consequence further shipments Of gold to
Europe not probable, except on special
transactions which, however, do not appear IN
sight, especially Paris and Berlin are in a
position to draw the precious metal from Lon
don, where money rates are under Continental
quotations and the supply OF gold is larger than
needed under ordinary circumstances. The Bank
of England, nevertheless, shows disposition
TO make II still easier for the Continent to take
gold from the British capital by reducing its
minimum rate Of discount, despite its heavy
holdings and IL is evident that just as long
the Paris check London remains at its
present quotation there will be change from
the current 2k per cent English bank rate.
The banks proportion of reserve to liability at
5Ol5 per cent is higher than IL has been at this
time ia any year since 1902, and compares with
an eight-year average of 1856 With a bank
reserve IN the neighborhood of 81. 900 900 and
bullion holdings of c f37.600,000 it is not likely
the London money market will tighten TO any
material extent for months to come, unless
financial conditions should be upset by political
troubles involving disturbance in the Balkans.
THE local time money market exhibits a frmer
tendency for long periods. the movement being
In response to the decline in Chicago exchange
on New York The New York banks have
tremendous reserve power at present Cash
holdings above legal requirements are larger
than al this time in any. preceding year since
1894 and unless a most extraordinary demand
for funds should develop they will be able TO
finance the fall mercantile and harvest require
rnents without issuing much, II any. emergency
currency.