New-York tribune., 1908-12-28
FINANCIAL MARKETS
STOCKS END WEEK WELL
Borrowers Pay More for Funds
Trade Improving.
TIT WEEK TN WALL, STREET.


closed but recovered the losses in the last two
days. the final range Thursday night being tor
the railroad shares practically at the best OF
the year. while the industrial issues were only
trife under the record figures The stock mar
ket shows surprising resistance to tarln taIk'
frmer rates for money, adverse foreign trade
conditions and active efforts by certain specu-
lative interests to bring about lower prices ana
from all indications the general movement OF
quotations in the year viii be IN IaVor VI
the advocates of a higher level notwithstanding
the fact that the greater number OF securlues
have enioyed an appreciation proporuonately
larger than the actual gain IN the country 8
business Stocks of course, are discountlns the
good things that are expected TO happen III Ille
nations industries in the course or the next
twelve months, and the chances favor the
DEVELOPMENT of vast Improvement In business
there is q pretty fair basis for the belief that
the market worth of stocks and bonds VIII IN
crease, though the small trader VINO specuIateS
on borrowed money should not assume thaI HI
1909 the movement Of values Will De I'D oliinI1i @
rupted procession toward higher hgures- Inc
technical position of the market was materially
strengthened by last weeks reaction ana at lle
close the undertone of speculation suggesteo the
probability of active buying on all passing de-
cIines In the current week the call money mar
ket may fuctuate widely enough 10 uhSe'S'o
stocks for a brief period.
One of the best features of the market is the
character of the demand for bonds. both on IIe
exchange and over the counter. investors at
the moment are discriminating against the h1gh
priced stocks. and conservative investors VINO
are thinking more Of the permanency OF their
holdings than Of dividend returns appear 10 De
more inclined TO buy bonds that may be mad on
q per cent level than the leading shares that
are selling at such an advanced basis. There is
a large amount Of capital seeking investment
and the fact that holders Of IDLE funds are e&-
ercising extreme conservatism in placing their
money is an encouraging sign of the times, and
one that reflects to great extent cautlouSness
learned from the lessons of last9 years panic
The effects of that disturbance on the countrys
business are gradually disappearing. Railroad
earnings and bank clearings show healthfuI
growth in the country's industries: the rail-
roads are beginning to be freer buyers OF the
steel companies. and in the new year the de-
mand from this source should be exceedingly
heavy owing to the forced contraction in ex-
penditures by the railroads in the last year anu
the necessity of spending more money In the
near future in order to maintain the physlcai
of the properties The tariff aslta-
ton naturally is inducing the withholding OF
orders by many consumers OF the products or
the steel companies in the expectation OF more
prices, while tariff talk also is affect
ing our foreign trade, as importers are not anx-
ious to bring in large consignments if they see
any chance of reduction in import duties. AS
a consequence Of the decreased imports of mer-
chandise the governments income stu remains
far under the expenditures, and in the next
month or so the Secretary Of the Treasury Will
be compelled to call for federal deposlts from
national banks or else put out another issue of
Panama bonds to Offset the constantly falling
revenue from ordinary sources The money PAID
by the Treasury in excess Of receipts or course
increases the amount of money in circulation,
but It is unfortunate that government receipts
are so coraperatively light at q time when dis
bursements are being heavily enlarged by the
requirements of the Panama Canal work
Call and time funds in the last week were at
the highest level since the rates recorded IN the
panic money market, but quotations were Iis9
only in comparison with the low figures that had
prevailed for many months. Call money was
quoted as high as 81 per cent, against d hlgn
record in the same week last year OF 70 per cent
when currency was at q premium OF per cent.
There was nothing in the position Of the market
that foreshadowed the development Of period I
Of extreme rates in the future, especially as
after the holidays funds will begin to flow 70 TINS
centre from the interior in volume large enough
to supply any increase that may take place IN
the mercantile and speculative demand and pos
sible further gold exports There will be large
demands upon the money market in 1909 in con-
nection with the financing of new securities !
issues but these operations and the demands |
based upon improving trade conditions will not
give birth to trouble in the financial world. An
active inquiry for money will keep rates on e (
req sonable basis. The money borrowed will in J
great part be used for the development Of our in
dUStrlSS, ana VIII not leaNo LIlS CIHLLelS u 3
trade as it did last year. when the sole thought
Of the greater number of people appeared to be !
10 get their money out Of banks and to hide it /
where IL could be absolutely inactive, The |
money market and trade and finance in general |
offer happy contrast TO the situation Of {. year
ago. and though the present conditions not !
wholly satisfactory the year draws TO a close /
with an outlook Of much promise in all depart |
ments Of the nations activities.
There has been heavy advance in the low /
de N weeks pricAS |
now stand there are few shares that are really /
cheap This, of course, does not preclude the /
possibility Of further enhancement in values |
among this class of stocks. indeed, the chances |
are higher quotations will be recorded, notwtth- !
standing the fact that the current level more |
than measures the actual worth Of the issues |
The Wabash shares Missouri. Kansas & Texas !
Texas & Pacific, St. Louis Southwestern and /
Brooklyn Rapid Transit have many followers |
while the same thing may be said of almost the (
entire group of second rate securities which are !
expected 10 give a good account of themselves in /
the hoped for January rise. The Wabash stocks /
have been features in recent dealings, and in /
some quarters it is thought that control Of the /
property has been taken away from the Goulds /
No matter who owns the Wabash, the fact re- !
mains that the roads financial affairs are still ,
In poor shape, though better than they were a .
few months ago, with the prospects of dividends /
90 remote to be almost unrecognizable, Ac- !
;ording to the character of the current support /
n the stock market the same interests who /
started the bull movement In the first part Of the
summer have plans in view for further advances !
n values. and they have the money to carry |
,ut their intentions II is reasonable to believe
hat their work will be reflected in material /
gains in most parts of the list, especially I'm /
nion Pacific Southern Pacific the Hill shares
It. Paul and New York Central Closing prices /
N Thursday OF a few Of the leading issues com
JARED with the final prices of the day before
christmas a year ago, show the following gains.
Dec D. Dec 24