New-York tribune., 1908-11-10
FINANCIAL AFFAIRS
ACTIFE STOCKS HE4TT.
Enormous Reolizing SoIes-CoU
Money AdUonccs to 3 Per Cent,
Highest Rate Since January.

Though there was an enormous buying de-
mand in yesterdays stock market representing
in great part inquiry for securities for public
account, realizing sales were heavy enough 10
curb the upward movement in the leading active
issues. with the exception of Reading and Penn
sylvania, which closed at net gains. In many
of the cheap priced securities and in inactive
high priced shares Improvement was recorded,
but in the greater number of stocks in which
transactions for the rise recently have been in
large volume final quotations presented net
losses. Total dealings were heavier than on
any preceding day in the current year. and were
larger than on any day since the big trading
in the market Of March, 1907. when the general
course of values was in the direction of a lower
level. The conservative interests in the Street
welcomed the check to the bull enthusiasm that
developed on the part of the purely speculative
element following the election of Mr. Taft, but
there was nothing in the way of bearish senti-
ment in Wall Street circles at any time in the
day even the federal decision against the
American Tobacco Company failing TO create
uneasiness. While the securities of this COM
pany sought d lower level, there was little gen
uine liquidation either in the preferred stock,
in the bonds or in the common stock on the
curb. The copper shares, the Hartman issues,
American Smelling, Erie New York Central and
United States Steel common were heavily sold
for profits, and though offerings were We'll taken
the issues suffered substantial losses. Tremen-
dous buying operations We're reported in Read
ing. and in spite Of the heavy realizing the
stock ended the day a net gain Of b on
dealings of 30S.300 shares (half stock). At the
close the general market, while showing great
irreguarity, reflected underlying strength in all
departments. Traders who sold stocks TO even
UP reported that they were we'll absorbed. The
minor trading element the heaviest seller.
Call money advanced 10 8 per cent the highest
quotation since last January. Foreign houses
sold balance. but many foreign traders went
home long Of the market on the belief that Lon
don prices would develop strength before the
local opening to-day
In last weeks market United States Steel
common advanced points, and for the first time
since 1901. when the issue sold at it's highest
price recorded, buyers who bought at the record
figures of that year were able to get out of
their stock If they chose on even basis
above commissions, Probably the percentage
Of buyers who bought in 1901 and held their
stock through the decline that carried il below
SO share extremely small. while it is
likely that the people who did maintain their
position the long side of the security were
not sellers at the high point established in last
weeks bull market In the last seven and one
half years Steel common has paid about per
the money invested. In the future il
doubtless VIII make larger dividend returns 10
the stockholders, the company has proved its
ability in times Of depression and on a working
basis of 50 per cent OF normal 10 make a com
Portable surplus after per cent on the pre-
ferred 2 per cent the common and heavy
expenditures from earnings on the property. It
Is UNDERSTOOD tnat the Cnief interests nave in
mind the ,.lacing OF the common stock a
per cent dividend rate next spring. and In the
mean time Wall Street expects the issue to 20
TO a materially higher level, accompanied by a
better quotation for the preferred. which long
ago passed from the speculative class 10 the
high grade investment column The Street
however may be disappointed in its predictions
of further great expansion in stock market
values in the near future. Careful market
judges believe prices ultimately will sell at hg-
well above those current but they
look for sharp reactions before such level will
be recorded Technically the market is much
weaker than it was a few weeks ago, and even
though conditions governing the intrinsic worth
Of securities undoubtedly will continue grow
stronger spectators may well make up their
minds that the market will not establish prec-
edent of moving higher and higher without
serious slumps a result of speculative factors
and days Of uneasiness over passing unfavora bic
developments
The foreign political situation may yet give