New-York tribune., 1908-04-22
FINANCIAL AFFAIRS
STOCKS CLOSE At BEST.
The Pennsylvania Loan and the
Bond Market-4nother Gold
EngdgemCnt.

After early dulness, with recesslons IN lhe
first hour the stock market yesterday osCSliile
strong and moderately active the lIlpION
continuing I'D TO the close. which showed lrreg-
rlar net price changes with gains predorllIla'
INK The business done was rather larger 'iis1-
on the preceding day, and final prices were ~
most instances about the best OF the session
The news Of the intention OF the ram oaus ~
the trunk line territory TO advance frelghl rates
had 2 beneficial influence on stocks. as proInis-
i-g needed additional revenue for various roads,
although opinion was divided as TO the pracl-
cabilitv Of the step in view OF the sun cow
ward tendency in the prices OF coInnodllies- -
more important influence was suppled III uIe
afternoon in the announcement Of the PeTlnsyI-
vania Railroads purpose to issue about @+o'-
600 600 bonds on terms said TO represent the
most advantageous financing done by any large
road in long time This decision was gen
orally taken as an encouraging sign. represent -
ing as il does the judgment Of the management
and the bankers Of that great system that the'
market situation is oppOrtune for the dotatloii
Of an extensive loan. That majority OF lh'
bonds will be placed abroad is practically Ger
tain and they will presumably find their mar
ket in France. where the Pennsylvania success
fully placed its 900 goo loan in 1906.
The rescue Of the Erie recently from threat
ened receivership has probably been one OF the
most important Of the circumstances Whlch nave
made possible the acceptance by French IN
vestors Al this time Of the securities OF even
vania. and Of so high credit, for foreign in
vestors do not as q rule place the most implicit
confidence in the sta abity Of American stocks
and bonds and the throwing into a receivership
Of large railroad system, the securities Of
which have long been dealt in abroad. would
have impaired seriously the credit in Europe
Of the railroads Of the United States. The New
York Central has Just obtained authorization
for the issuance Of $24 100000 Of bonds, which
proba bly, viii soon be brought out and the
offering Of these and Of the Pennsylvania bonds
not arranged TO be placed in Europe viii give
a conclusive test of the condition OF the invest
ment markets in this country. as the absorption
Of these securities would be definite sign Of
returning confidence In any event the issues
viii be underwritten. and the railroads will thus
be enabled 10 procure funds for carrying out
their plans for beJerments and Improvements.
their expenditures giving some measure of
stimulus 10 the markets for both labor and ma
terials.
The money market showed no change yester-
day IN the rates for either call or time funds
and the supply Of money for all maturities still
heavily exceeded the borrowing demand The
foreign exchange market was strong, with de-
mand sterling up - points at the close. An
France was announced, the amount being ST.
10 S4,00O.00O. The Bank OF England yesterday
sent 81 600 gold 10 Paris and the entire
amount Of South African gold which became
available in the open market in London, e 400
900. was taken for Paris account With the
demand for the meta! thus strong from the
French capital. and with foreign exchange rates
continuing 10 move against this market, there IS
every Indication that the current export move
ment will assume large proportions.