New-York tribune., 1908-12-14
FINANCIAL MARKETS
GENERAL STOCKS HIGHER.
Money Rates Slightly FUmer-
Sterling Erchange Strong.


being moved TO a higher range. the gilt edged
shares are being more closely intrenched in
strong hands, and the supply of first class IN
vestnlents available for purchase at attractive
figures is rapidly being reduced. Since the cleo
tion there has been an active movement OF cap
itaI into investment securities both in the stock
and bond markets. and that the public appetite
for good things has not been satisfied IS rejected
in the almost immediate success of new security
offerings The Frisco and Rock Island bonds
recently offered by SpeyeT & Co. we're disposed
Of about as soon they came upon the market
many intending buyers being unable TO secure an
allotment while similar conditions prevailed IN
the case of other offerings which appeared Al
tractive to investors. The placing of the Frisco
bonds was an influence in helping the general
bond market; including the old issues of the
ST Louis 6. san Francisco, as, for instance, the
co1npanv's refundng As. which sold last week
above S. as compared with 64 at this time
wear ago. The Rock Island has been materially
strengthened as a consequence OF the financing
Of the 'FrisCo's requirements, and there Is good
reason to believe that the advance in the com
penzs credit as result of this operation VIII be
effective in carving all the Rock Island securl-
ties and the securities of controlled roads TO
materially higher level. There Is a large amount
of capital seeking investment. and corporations
that need more money for the furtherance ~
their extension and development plans will not
he compelled 70 worry as TO whether or not tleN
will be able to secure the proper banking IA
ciIities The big Wall Street banking houses are
have the money TO handle vast financial transac-
tians and they are satisfied that the securities
they may take from the railroads and lndustrlal
concerns of merit will be in good demand from
the public Securities still may De oousht TO
return excellent incomes.
From a wholly speculative point OF view the
stock market doubtless has been moving up at
z rate that soon will invite q sharp decline III
values but just long as money remains cheap
nothing more than passing weakness is looked
ic
would like to see a protTacted decline Funda-
mental conditions are against q bear market
rapitaI is against bear market, and the MAJOR
ity of traders on the floor OF the Stock Exchange
.-a ,,r7riline to go short Of securities for more
than turn II was thought in some circles
last week that the advance in the low priced
issues foresha dovyed the end of the bull cam
M ign but the character Of the operations did not
suggest that the chief holders of stocks had any
intention of iuuidating their accounts; indeed
the general buying was as good as II has ceen al
any time since the upward movement hesan-
There are of course. certain weak points in the
technical position of the market, and 4 good
sized decline therefore may soon develop par
tiCularly in the shares that have been heavily
bulled BY pools and cliques. There IS danger
in the market for the small margin trader ar
this iuncture. but according to the IDEAS of the
most experienced brokers in the Street the man
1-ho can buy stocks outright eventually Will be
able to sell them at better figures, assuming that
there should be no radical adverse change IN
business Current indications suggest gradual
n-cgress in all lines Of business and an increase
in gold production commensurate with the in
creased use of money. There Is more money IN
the country to- day than at any previous time In
the history of the nation and though rates for
funds will not continue to rule at the present
low levels there IS no suggestion in current con
ditions of the development of financial disturb
anCe Distur bance however, viii come at some
future time. Just II has developed in the past
cult ,o< Tba yT-aol olrT7eS
system. unless laws are enacted that will work
for greater fexblity in our circulating medium,
for better apportiOnment Of bank reserves. Tor
an7pler and more scientifically adjusted redemp
ton facilities and for the adoption Of other ele
r77ents which shall bring the system closer to the
people of the whole country. as suggested by the
Secretary Of the Treasury in mis- annual report.
The country is moving forward, and our currency
system should move with II.
Improvement far recorded in the stock
market has not been based on idle fancies or
pretty dreams There has been manipulation
in stocks. but II has not been the manipulation
that ie calculated to destroy values The oper-
s+ions in securities have increased the value of
the holdings Of investors throughout the Coun-
Try while they have strengthened credit and in
duced greater confidence among business men
over the future of the nations industries 1t is
to be hoped that the movement viii not run into
a mad speculative orgy. that there will be no
oyerspeCuIation and no imitation Of values. that
prudence and conservatism viii mark the future
Of market operations, and that the banks VIII
not lend their resources to the financing of that
sort Of speculation that always ends in disaster,
not only to the people concerned, but to the
country at large. Overspeculation at this time,
with its logical collapse. would interfere most
seriously with general mercantile and business
conditions Fortunately the stock market is
moving along in orderly manner, the public
is not blindy buying stocks on the theory that
fortunes can be made on shoestring margins.
and brokers are not accepting accounts that
cannot be protected in days of declining prices.
The increasing value OF the equity in the low
grade shares is responsible for active buying in
this group of securities as reflected in the Oper
ations in the Wabash, Denver 6, Rio Grande.
Chesapeake & Ohio, Erie Colorado & Southern.
Chicago 6 Alton, Allis-Chalmers. American Hide
and Leather, Brooklyn Rapid Transit, Iowa Cen
trail and Ontario & Western shares. The recent
advance in these stocks may have discounted 70
q large extent expected improvement in their
actual worth, but il is not unlikely that they
viii move along with the general market.
Railroad earnings received in the week made
\ fairly good showing bank Clearings reflected
an increase in the general volume Of business.
and reports from most departments Of the metal
trades. while presenting evidence of a great
enlargement in orders. indicated {, steady gain.
The market for pig iron and finished products X
quiet but activity is looked for after the turn of
the year, with heavy orders from the transpor-
tation companies for steel rails. Rumors of
important advances in steel prices appear to be
without foundation. There have been few large
sales in the copper market in the last week but
this is surprising. in view of the fact that 1t
has been the custom of consumers for years to
DO little in December. The copper market is il
strong statistical position, but the silver mar
het Is far from promising, the metal ruling
the lowest price record, while surplus sup
plies are heavy all over the world. Money rates
were slightly firner last week. sterling exchange
was strong. and further gold export engage
ments were announced. The banks lost heavily