New-York tribune., 1908-06-05
FINANCIAL AFFAIRS
STOCK VALUES DOH N.
Sborp Decline in Union Pacific
Bear TRADERS 4ctlUe -
Money Easy.

ro-I,, nrices in Yesterdays stock maj he'
showed declines as compared win the ci0e
Of the preceding day. while throughout 'iie II,
- - trading the general tendency was IN
the direction of lower quotations, especlallS II,
the last half hour, when the ehu1e A9'' -
hx Union Pacific suffered sharp losses "e
ness in Union Pacific encouraged 'he lue t.,I
the Hartman interests, having successlullH
1oo.5 +beir t,ond issue would make no further
efforts TO bring about higher prices IN Stoch, ,lL
the fact that active selling was repoi'eu y!
houses which were supposed to handle the VI u0i
Of tbe substantial manipulators OF the recent
-, ,.-l.a+ satisfied the ordinary trader that
5istritutfve selling was under way for the So
called insiders. In some clrcleS' ho"eN
theory that Union Pacific and all the leaolhs
securities will sell at better figures pe1ore ma
terial declines take place was tenaclouslS au
tarad +o and backed by active purchases or the
Hartman stock the late break. Wheh 1t SUI
< points under the high level IN "eulesuas
market This security with Reading ana Onl'eo
States Steel common. supplied more uIdh 'lie ,
half Of the total dealings. and these issues, WIN
ST Paul and Northern Pacific, recorded the heaV-
lest net declines running from "a points III 'lle
last named to 3fs in Union Paclhc-
The Union Pacific company apparently mas
made its bond sale at terms agreeable to Mr..
| Hartman and no difficulty should be expert
| enced in finding a market for the securities Win
the public as they gilt edged IN all pdrIlcu-
lars DESPITE the fact that the Rothschllds would
NOT participate in their fotation. The Roth-
! schilds never have made practice OF financing
American railroad bond issues. and their Will
! ineness to take some of the recent fenIlSg glNaid
bonds and their refusal to take part III lhe
Union Pacific financing at the terms proposed
! h,, Mr. Hartman in no way reflect upon the
! character of the last named investments. Inc
! tactics employed by the Union Paclnc people III
the past have not been admired IN an quai Iei >
hut no one can truthfully say the Union racine
! interests are not good railroad builders. They
rebuilt Union Pacific financially and physically
and turned its bankrupt treasury INTO a lo per
/ cent dividend payer on the common STOCK hear
| traders are trying make capital out OF the
! ,,.iee decision of the United States Steel Com
| pany to reduce the price of steel bars and the
! probability Of further cuts in finished IRON ana
steel products. losing sight OF the fact that the
| cost of manufacture of these products also has
| declined and that lower quotations will serve to
| stimulate an active demand. 1t is quite true
| that trade conditions are not so favorable as
business men would like to see, but conditions
are better than they were a few weeks ago,
! with every indication OF gradual improvement IN
| all lines. A gradual, sane recovery from the
depression that started as a result of the autumn
| panic is under way, and the realization OF the
| economies of the situation by the United States
Steel Corporation and other big manufacturing
concerns will help to strengthen the foundations
! Of every business operation.
The Jnperial Bank of Germany has reduced
i-its discount rate TO Az per cent from the per
cent level established in April. comparing with
the 711 per cent record high rate reported at the
cheap money il indicates gradual betterment
! I'm financial conditions in Berlin and suggests
! the inprobabity OF long drawn out demand
! for gold for German account, though it is not
unlikely some additional shipments Of the metal
/ will be made. Exchange was barely steady yes
terdav but foreign bankers believed further
amounts OF gold would go to Paris. where, de-
| spite the enormous gold holdings Of the Bank
| of France the disposition is to accumulate a
! bigger supply every possible opportunity.
| This country's gold holdings are large enough
to stand d foreign drain without the develop
ment OF stringency in the local money market,
and now that the banks have a currency relief
! measure 10 fall back upon in times OF approach
ing trouble little interest Will be taken In the
! International movement Of gold, which in the
last two months has taken about S4OOUO,OOO from
this side Of the The very fact that there
is Il law which will enable national banks to
take out d large amount OF additional circula-
ton will to create confidence IN the belief
that there will be trouble in the money mar
ket in the fall when the usual demand for funds
for crop moving purposes will develop; and
doubtless il also viii encourage the belief in
| speculative circles that there Will be unlim-
tied supply of money for stock market purposes.
Fortunately the Secretary of the Treasury viii
have the power of deciding whether not the
needs of the situation demand the issuance of
| emergency circulation