New-York tribune., 1908-06-26
FINANCIAL AFFAIRS
STOCK VALUES STRONG.
Prices Up on Light Days Trading
Sterling Rates AdUance.

In the leading issues in yesterdays stock mar
ket the movement of values as a rule was IN
the direction of higher level, notWlthstaholHS
efforts bv certain interests to depresS prices pH
selling the Rock Island and st. Louis & san
Francisco issues Strength, however. was not
ACCOMPANIED by any expansion In the volume OF
business. total sales amounting to less than Z'o-
900 shares of which more than 100000 shares
were supplied by six stocks. Union Pacihc ana
Reading being the leaders, with total of more
than 100000 shares In of the inactive
securities fluctuations were wide on small DEAL
ings notably in the case of United Cast Iron
Pipe stocks. which were heavy on the COM
pany's poor earnings. and in American Locono-
tive common. which advanced 513 points on the
declaration of the regular quarterly dividend OF
] Il per cent Reports that the Public Service
Commission would approve & 10-cent fare to
Coney Island helped the stock of the Brooklyn
Rapid Transit Company to the extent of / point
in the early operations. but part OF the gain
subsequently lost and the issue thereafter
was neglected. while in most parts OF the list
issues that received attention in the fore
noon generally attracted no interest in the later
transactions. Among the low priced stocks
that were fairly we'll bought were American Car
and Foundry, Chesapeake Ohio and Ontario
& Western. the last named selling up a point
as compared with its closing in Wednesday
market. There was little business in the day
outside of traders operations favorable crop re-
ports, easy money and Mr.. Morgans CHEEKY
view of the future business conditions falling to
attract outside demand for securities. The
attendance the floor of the exchange was
extremely light owing to the fact that COM
mission houses practically had no orders on
either side Of the account. Sterling exchange
strong.
Although money rates at Berlin still we'll
above those prevailing at this centre, foreign
bankers do not look for further heavy ship
ments of gold from New York TO Germany
New York could well afford to make additional
shipments. and. as matter of fact, local banks
would welcome a renewed demand abroad for
the metal, owing 10 the plethora of funds here
and the cheap price of money, but apparently
foreign requirements have been satisfied, for the
present at least, as no inquiry has developed
this week for the precious metal in this market
Both the Bank of England and the Bank of
France we'll supplied with gold Germanys
holdings have been materially increased in the
last two months while in this country the float
ing supply Of gold Is heavier than at any time
in the history of the United States, despite the
fact that than $4,000 600 has been sent to
Europe since April l. In addition to this amount
the New York banks since last December have
| lost the federal Treasury on government with
| drawals in the neighborhood of $4,000 600, yet
cash and reserve holdings of the banks and
trust companies enormous, with every indi-
cation Of further accumulation of funds be
fore the demand arises for currency in Connec-
ton with the gathering and marketing of the
years harvests. The banks have gained from
the interior $147 600 900 in the last five months
they have gained from the Sub-Treasury
through government payments and
through the redemption of national bank notes
and they have gained from deposits of funds
by individuals and corporations. As a rule
the movement of money from New York TO the
interior begins toward the end of August and
continues until after October /. but If the
inquiry for accommodation this year should
unusually heavy. of which there is little chance
the banks will he able to handle the operation
without the accompaniment Of monetary dis
turbance which in the last few years has
marked the autumn money market.
With the vast accumulation of funds here and
with big supplies at other centres foundation
is being laid for expansion in the securities
market and # is not unlikely a reflection of
money conditions soon will be found in greater
activity in the bond market, in which there
many attractive opportunities for the profitable
employment of idle bank accounts. In state
ments made by men of affairs pessimis-
tic tone is noticed in their reference to busi-
ness conditions. but actual trade reports are not
nearly as unfavorable indicated in these e
marks, though, of course il is generally ad
mitted that there will be no business boom in
the near future. There is nothing intrinsicaly
weak in fundamental conditions, and in the
event OF good crops and with the election out of
the way undoubtedly there will be a vast change
for the better in the country's industrial posi-
ton. And il is not unlikely that before that
time the securities markets will discount in ex-
panding business and advancing prices return
of normal situation. On all declines good
curities will be taken by careful buyers. The
fact that there is such limited supply Of float
ing stock does not encourage the idea of ex-
tensive operations the short side of the
market. People who have stocks afford to
carry them, and they show disposition to get
upset over dividend reductions and falling earn
ings