New-York tribune., 1908-12-22
FINANCIAL AFFAIRS
STOCK PRICES DOWN.
Rear Pressure and Commission
House Selling-Further Cold
Exports.

49,. - .,,i-, ,ressi,-e attempt to rally prices
=, the opening operations, the genera -,
5.5;r,a5 under the influence of pressure lioi"
.o..geiona1 element and active nQlhdaioi
= ,o,,r,5seion houses. in the course OF "lil|H
rio, Pacjfc Southern Paclhc' hed'il!e'
so1ida+ed Gas Northern Paclhc aha = ND ,
mated Copper sold down from the l"iIia, ~ b,,
.fore IL to 81 points before the lio'h -
e-...1-- --ere supplied in active volume Oh C'7
recession No indication OF lnNesttleI: ~, +f,
tior was reported, the selling Ielieseii'9 ai,,
ing beyond the operations lhciueIil - - - 1.,,,
-, movement based in great part upon speC"-
- conditions aggravated by hrmer rates lol
-r,onaz, and manufactured uneaslneSs IN 9PSC~ t
1ative quarters over the tarln aslIds aslIdtlol! s.
we're = few exceptions 10 the 90" t7as
- ,-a1ues chiefly among the low prl0eo 9llaie 1
- So instance Wabash. preferred ahd bLpo>
In Papid Transit while Anerlcdh ,
also failed to take part IN the MOI me ne. a,C7
To,7ht1ess the short interest IN tilS '10 .1+
..col, has Feen materially reduced as d
:. +l,o recent decline. thus accounting loi 10
relative strength yesterday In thS al'Tl ~ ~
mos of the leading issues SOLD al Ilie
,ricee recorded since the culnllha aIiol -
80 -efection rise, Union Pacific being QuoIsu
80 - .na,, ten ooints under the high OF the
--ear beading ia, St Paul 6s4 ana CiI'eu
states Steel -. The testimony d nj =.
,7agie before the Ways and Means CohiIii4I'e1
csT7ead siness in iron and steel HlIcles' Oh
a. theory that II would induce consumers 10
+a,- ont of the market In expectation thaI d
reduction in iron and steel duties "ou'o lol
raadjustnlent of steel prices III favor OF nc ne
l,,1vers II is not likely that the buyers " III
- =. a,,---o GREAT extent in the event OF
lower tariff on steel, especially II, as Some Ia
tarests suggest, the independent ndhuIacIul ei7
Of steel products should be driven OUT oI puei
moss 1bv a change in the tariff. In that case tHV
I-nitad states steel Corporation would become
. 77ouopoIv The chances are the Repuollcan
administration will not remodel the tarll 10
an extent that viii wipe out the small concerns
and at this time people who sell thelf S'o'h9
-, tariff considerations developed 10y advocates
or lower prices deserve no sympathy II tIley
1e. +rair money The selling in the afternoon
vas more general than in the earlier hours, the
only support coming from the shorts "hlch was
effective in the final operations, when the gen
era1 list recovered a point OF more of the de
cline Sterling exchange was strong ana f0oo'-
Onl gold vas taken for export
The decline in bank reserves as shown in sat
5Irdav-s statement Of the local institutions
causes no uneasiness in financial circles. though
= suggests a stronger market for money over
rhe end of the year. There has been heavy
falling of in reserves in the last few mouths,
as a consequence of conditions that are making
for 4 more active employment Of funds IN the
channels of trade and because of federal Treas
ny reouirernents. the current movement OF
r,onev therefore offering sharp and encourag-
ing contrast TO that of the panic period at 1904
when deposits were being withdrawn from the
hanks as 2 result Of fear on the part Of depos-
itors There Is more money in the country To-
than before IN nlSttiy u the ioLiOi
gold production continues at q rapid pace and
the promise is held out that at remote time
Congress viii legislate in favor Of currency re
form that will give US system commensurate
with the needs # the business situation. We
have enough money. but Il is so governed and
controlled that ar periodic times the extent of
the supply is unable 70 prevent spasms OF dis
tlrbance in the loan market. with a consequent
unsettlement Of values and difficulty among
merchants TO secure accommodation except al
extravagant rates II is estimated that the Jan
uary interest and dividend disbursements will
call for the distribution Of upward IF cocoon.
ank reserves and preparations Tor the meeting
Of this vast obligation II is not unlikely that
therc will be q fairly stiff market for funds In
the balance OF the month and further liquidation
of stock market accounts carried ON borrowed
money.
The payments on Panama bond account have
Increased the governments working balance 70
s32 900 600. which viii be further strengthened
when the rest Of the money is paid in but
= federal receipts still running heavily be
hind expenditures good part Of the gain Will
be offset by return Of funds 10 the banks.
which viii make necessary another issue of
bonds or a call upon depository banks for gov
ernment money. Of which they hold Sos
a71535 The excess OF expenditures over re-
CENTS IN the national Treasury account stands
az more than Se20 900 for the fiscal year and
though this situation does not warrant alarm il
calls for serious consideration, especially in the