New-York tribune., 1908-08-05
FINANCIAL AFFAIRS
STOCK T4LUES STRONG.
Neac High Records for Year an
Many Issues-Stering Er-
change Weak.

Notwithstanding the sale Of large amount
of long stock in yesterdays market prices were
strong throughout the best part Of the five hours
of trading with substantial net gains in many
of the prominent issues. Selling rule was
for the account of interests who we're anxious
to convert paper profits into cash. but as far as
could be learned there no important dis
tribution by the chief hackers Of the bull cam
paign, while, on the other hand. there was eyi-
dence of further accumulation for their account.
especially in Reading Union Pacific. Ontario &
Western st. Paul. the steel shares and copper is
sues Both United States Steel common and pre-
ferred made high records for the year, the
buying of these shares coming from houses that
represent important financial interests and in
Guiding a large proportion Of actual investment
purchases. It Is understood there is a big short
interest in the common, formed several points
down the theory that the price of the stock
had enjoyed all the improvement to which 1t
entitled Conditions in the steel trade have
improved to such material extent in the last
month that short sales of the stock ought not
70 appeal TO careful market operators, particu-
larly as the present time some of the strong
est houses in Wall Street are buying the issue
on the belief that its actual value IS far above
fits current quotation. Efforts were made in the
day 10 bring about liquidation by the people
who are working for better quotations in On
tario & Western, but there no important
decline in the shares. and further accumulation
by insiders who basing their purchases on
the increased intrinsic value of the security as
a New Haven asset which other companies
would like to acquire. The Southern Railway
stocks were taken by good class of buyers;
also the railway equipment shares. Foreign
change broke under the influence of heavy sales
of American bonds abroad.
So far in the current week the local banks
have gained more than s2000,000 on their opera
tions with the Sub Treasury, while receipts of
currency from the interior have been moderate
" heavy though less than recently reported.
An active demand for funds from out-Of- town
points has not yet developed. but the chances
are shipments from New York will soon grow
more pronounced account of crop require
ments which promise TO be large, despite the
fact that banks in other cities are in strong
position exclusive of their balances in the New
York institutions. In addition to the demands
in connection with the financing of the har-
vests, an active inquiry for money for general
mercantile purposes is expected also an active
inquiry for stock market purposes. All indica-
tions point toward further expansion in the
dealings on the Stock Exchange in the course
of the next few weeks with corresponding ex-
pansion in bank loans which. of course, with
other factors in the money situation will tend
to harden rates for accommodation, though the
enormous holdings of the banks and trust COM
panies in this city preclude the possibility of an
excessive price for money. Money conditions
are ideal for increased trading in securities. and
apparently the larger Wall Street interests are
counting upon the ease in money to bring about
much higher quotations for stocks. especially as
at present the return on securities is much bet
ter than that loans while the large supply
of funds makes the carrying of speculative
counts an easy matter Notwithstanding the
advance that already has taken place in the
stock market. bull interests believe further ap
probation is fully warranted, and that they
operating on the strength of their convictions is
reflected in the character of the trading. II is
not unlikely that the cheap priced issues will re-
cefve greater attention from the speculative com
muniiy before the current bull market its
course, while IL is quite evident the higher class
shares. such as Union Pacific, ST Paul, United
States Steel preferred and Reading will continue
be prime favorites.