New-York tribune., 1908-05-05
FINANCIAL AFFAIRS
STOCK CLOSING WEAK.
Influence of London Depression
Union Pacific Bond Issue.

The most important development affecting the
securities markets came after the close OF buS1-
ness yesterday, in Mr. Harrimans statement
that the amount of bonds which the stockhold-
ers of the Union Pacific would be asked to au-
thorize at their special meeting to-day would
be 500, 600 00O, of which s50,000,000 would be
issued. That he has faith in the relatively
early recovery of the country from its indus
trial and commercial depression is indicated in
the announcement that a large part Of the
proceeds of this S50.000.000 bonds will be used
in development work, the prosecution of which
Will naturally play a part in effecting that re
covery; and that the Union Pacihcs pro-
gramme is still one Of expansion is shown in
the reservation of the remaining $50 00e.0 600 of
the contemplated issue for construction ac-
QUESTION Of lines and for additions 1t is
commonly believed that arrangements have al
ready been made for placing in Europe as well
in the United States the bonds to be put out
at this time. perhaps a fortunate circumstance
in view of the weakness of the London market,
where consols declined rs points yesterday,
and the depression the Continental bourses.
The local market declined in the first hour
yesterday, in line with the lower range of prices
reported from London. which reflected appre-
hension over the Afghan complication, then ral-
lied, the leading issues gaining point or two
each, and after more or less irreguarity broke
rather sharply in the last hour. final prices
showing net losses of between and two
points for most Of the market favorites. and
being at about the lowest of the day. There
a good deal of realizing during the day,
and the shorts were embodened by the weak
of the market from time to time to renew
operations for the decline; but the only news
having market bearing that from abroad.
Total transactions We're slightly in excess of
100000 shares. or on a considerably smaller
scale than several days of last week; and in
the bond department similar decrease in
activity seen. The grain and cotton mar
kets were strong and active wheat making a
maximum advance in Chicago Of three cents on
the remarkable decrease of $500. 900 bushels in
the visible supply. and touching its high
est price for six years, while the local Cotton
Exchange the prices Of the leading options
closed about 80 points higher than on the last
preceding business day
4 slightly harder tone was apparent in the
time money market. rejecting the Withdrawals
Of cash for Treasury account, and foreign
change rates weakened little, probably on sales
Of bills against the Pennsylvania loan. The de
nland sterling is now so low as to make
out Of the question for the present the resump-
tion at a profit of the gold export movement and
II Europe shall take a large block OF the forth
coming Union Pacific bond issue the payment
for them in addition to the PENNSYLVANIA bonds
may work suspension of gold shipments at
this time, The sale Of s20.000000 New York
City six months bonds TO TWO local financial in
terests was announced yesterday but these short
term securities Will not be disposed of to Euro
pean investors They bear 324 per cent inter
est. and their purchase represents practically
only ordinary time loan operation, the bank
ers lending funds to the city, which pays almost
the prevailing rate for six months money on
collateral Of the highest excellence and possess
ing ready marketability. April has been a
month OF record business mortality, the number
of commercial failures having been larger than
ever before in that month ana having been 81
per cent in excess of the total for April. 1907,
while the liabilities than twice as
heavy in the latter month 1t should be
borne in mind however. in making comparison
with previous periods of business depression,
that the country is rapidly growing and the
number of business concerns is correspondingly
increasing year by year. Moreover, although
all OF the testimony agrees the extremely
poor condition of trade and industry last month.
signs becoming visible of a more optimistic
feeling, which is the forerUnner Of a betterment
in the general situation.