New-York tribune., 1908-05-22
FINANCIAL AFFAIRS
STOCK VALUES HIGHER
Actire Bull Interests Resume Dper-
atiOns- s-M0ney Easy.

Active bull interests resumed aggressive oper-
stfons for higher prices in the late dealings yes
terdav and as a consequence early los ses were
recovered while final figures showed substantial
net gains in many Of the leading Issues. the
decline Of the preceding two days l9laced the
market in a technical position favorable 70
further transactions for the long account, but
the upward movement was not accompanied by
an indication of public support, tlle chief re-
sponse to the hackers of the buil campaign
coming from traders who had mots rately heavy
lines of shorts outstanding. The conference or
the steel interests, at which it va assumed no
change would be made in prices, al Id the passage
by the Senate of a resolution for the appoint
r,ent Of & monetary commission were advanced
as reasonable arguments for better market
prices though the underlying cause Of the un-
ward swing was found in the activity of the
houses that for many weeks have been heavy
buyers Of Union Pacific and Reading. and TO
some extent in the activity Of a Boston operator
in American Smelling in whf ch a large number
Of shorts were forced to ma ke hasty retreat
This issue advanced Is above its low price OF
the morning closing at net gain of 21s. While
Union Pacific gained 212 81 I'd Reading IA ST
Paul though heavily sold by prominent Broad
way house in the forenoon trading shared TO
large extent in the afterno< improvement The
Erie issues and Wabas1 preferred also were
strong features among the railroad shares ana
Consolidated Gas in the ldusrial list. the move
ment in the last named being helped by talk OF
better dividend prospet: is for the stock. not
withstanding the fact II lat there was nothing III
the gas situation that arranted the expectation
Of an advance in the dividend rate at the next
dividend period. Tot Al dealings again ran be-
yond the million share mark but were poorly
distributed. three isg les supplying nearly one
half and ten issues q bout three quarters
Every important r, ilroad in the country shows
heavy losses in earn ings for the second week IN
May; every rairoag reports an increase in the
number Of idle carr and locomotives, and with
the exception of Nj Hartman the leading rail-
road officers are n enthusiastic over the pros
poets for imnt ediate resumption of activity
in the transports ton business Many people
who have stocks for which they are anxious TO
find a market sa rainbows in various parts or
the business and financial horizon, but the con-
servative merchs nts, manufacturers and railroad
men are not ju mping to hasty conclusions re-
garding the. ro sumption of industrial activity,
realizing that 7 Prosperity cannot be made to or
der and that II future of the cour1ry's business
viii not be i'm proved by the introduction of ar
tifcial method s TO stimulate tagging trade at
this particulas period. The nations industries
will not go tc pieces because of the current halt
in business expansion. Underlying conditions
sound, b at they will not be helped by i'm
moderate sp ,cuation in Wall Street. despite the
fact that IL al boomers insist the best way to
bring about confidence in business circles is to
lift stock larket values. There is nothing in
part of in, estors. though there many factors
that suggI st trouble for spectators who buy
stocks on margins at current prices. The float
ing suppl of stocks has been largely increased
in the las few weeks. and substantial amount
OF the he ldings of people who bought securities
in the u inic days of 1907 have upon the
market, the sellers having pocketed their profits
and reU red from the Street The public bought
stocks At the cheap prices ruling last fall, and
1t has AIKEN advantage of the current advanced
level turn its holdings to Wall Street.
The Bank OF England made change in its
miniIf .um rate of discount yesterday, though its
week. return presented a stronger showing,
with. one exception. than in any corresponding
week in the last ten years the proportion of
serY to liabilities amounting to 81 "a per cent,
com pared with average of 4I.S2 per cent in
the last eight years. Under ordinary circum-
staI ices the British institution would not make
spa eial efforts To increase its reserve to such
lar &c sum. would II maintain its discount
rc e at per cent. but current conditions
TN Continent, particularly in Germany, have in
di iced a highly conservative policy the part
% the governors OF the bank The Bank of
iermany's rate is uncommonly high for this
)eriod of the year, and the fact that money at
Berlin commands d much better price than IL
Q does here furnishes good for shipments
of gold from New York 10 the German capital
Money rates here remain at extremely easy
level, with no immediate prospect of an advance.
If gold exports continue however, and the
Treasury wthdraWs large government deposits
from national banks there doubtless will be a
strengthening in the price of funds before the
Summer is over. Government revenues so
far below expenditures that in all probability
The Secretary of the Treasury will recall
S.JlUGUuO at least from depoSitary institutions.