New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-01-11
FINANCIAL MARKETS
STOCKS IN GOOD HANDS.
Money Grosoing Easier and Beg
Bank Reserves Predicted
Trade IRREGULAR.
THE WEEK IN WALL STREET.

the fact that the first Jar Of this sort IN many
months has marked the first full business week
of the new year encourages some traders TO
assume bearish attitude on the market, on the
theory that the long absence Of disastrous stock
movements will be followed by unpleasant de-
yeIopments now that the ice has been broken
by the course of Consolidated Gas. Wall street
was intensely disappointed over the decision by
the Supreme Court against the local Gas Trust
chiefly because the tip long ago went forth that
the action of the court would be favorable to the
company the assumption In speculative circles
being that there had been another leak from
Washington upon which it was absolutely safe
70 accumulate the stock OF the Consolidated Gas
COMPANY There has been so much advance IN
formation of a trustworthy character from the
national capital in recent years that traders rex
justified in believing the reports current on the
probable tenor OF the SO-cent gas declsloh anu
they were amazed, hurt and chagrined When
they found that after all there are times when
inside information goes awry. Their feellngs not
only were hurt, but their pocketbooks as WeIl'
indeed in several quarters the decline last week
in Consolidated Gas shares caused serious imam
cial trouble that for time threatened TO LEAD
TO the failure OF two firms. Many individual
operators who were heavily long OF Gas lost
about every available quick asset they had Ii the
general market had not been so well protected
the Consolidated Gas slump of more than 80
roints in two DAYS would have caused something
akin to Generalization, but beyond sharp oe-
cIines caused by bear pressure and commission
house LIQUIDATION of weak accounts noIhiIls VI
lasting Importance took place. On THURSDAY
prices resumed the interrupted upward move
ment despite the talk in some circles that
period Of unexpected happenings might be looked
for though not maintaining the gain Frlday.
No one knows what will happen in the future,
but the more substantial financial interests ap-
pear satisfied that prices will go higher because
of easy money and hoped for business improve
ment.
All indications point toward low rates TOT
funds in the first half of the year at least Bank
holdings are large, and currency is moving 10
this centre from the interior, while the govern
ment continues to lose on its operations with the
public. Federal expenditures exceed receipts by
heavy figures with no indication OF change IN
this respect for months to come, and as con-
sequence the Treasury before long will be com
PEELED to call upon the depository banks for gov
eminent money held by them or else adopt some
other method of financing its deficit The banks
can well afford to turn over money to the gov
eminent especially at no distant time II VIII
be returned to them in the ordinary course OF
business while under present conditions they
can afford to send gold to Europe, where interest
rates are higher than they are here Gold
doubtless will go out in some volume, but not IN
the settlement of debts. This country is a cred
itor nation at present, and gold shipped TO
Europe will represent loans by the United
States and will increase our credits at foreign
financial centres The mercantile demand for
accommodation is light and promises to remain
SO for an indefinite period. merchants being Wen
supplied with funds to carry on their present
hand-to-mouth operations and having no desire
TO extend their commitments until they nnd OUT
what to expect in the way Of tariff readjustment.
Tariff talk is restraining business activity, but
it is not causing uneasiness in business circles.
1t is conceded that some change must be made
in the schedule Of import duties. and as conse-
quence waiting policy in the matter of new
engagements beyond actual requirements has
been adopted, though it may be well to note
that actual requirements are now mucn larger
than they a few months back. while the
actual volume of business is far heavier than
IL was at this time year ago. a reflection of
which is presented by bank clearings and rail-
road earnings Operations through the clearing
houses of the leading cities last week showed
gain Of 80 per cent over the corresponding period
in 1908 and while official reports Of first week
railroad earnings were not received the advices
from traffic managers indicated a favorable
comparison with last year. Business men do
not look for a return Of our industries to a nor
NAL basis until the second half of the year.
Though Consolidated Gas stock suffered a de-
moralizing break in the early part of the week,
the general average of the leading active STOCKS
at the close of the market on Wednesday was
only about 219 points under the highest level of
the last twelve months and If 1t had not been for
the wide distribution of Gas stock in commits
sion houses the so-called Gas panic would not
have occurred. The general market is in
strong position at the moment, end so-called
low priced shares and speCialties are being ad-
vanced with ease. but ii is conceivable that the
movement in these issues may be carried too
far and that under the influence of easy money
an inflated range of prices may be reached. AS
a matter of fact, there few real bargains in
the stock market for the investor. There is prac-
ticaIly no investment buying in shares at pres
emit but there is a strong demand for mortgage
securities both on the exchange and over the
counter Bonds offer safe and attractive channels
for the placement of idle money. and bond houses
experience no difficulty in disposing Of their
wares Reinvestment Of January interest was a
marked feature of the bond market last week. and
will continue throughout the month, especially in
the mortgages of the railroad companies of the
first grade. which are likely to advance for
months to come Among the industrial bonds that
doubtless will move to better figures are -Allis-
Chalmers SIS, American Agricultural Chemical
convertible IS. American Telegraph and Tele-
phone convertible Is and Virginia-C arolina Chem
ical 5s while in the railroad list among the rela-
lively low priced issues the Rock Island collat-
eral trust As ana the Iowa Central refunding IS
look promising. Current offerings of bonds are
taken as soon as the lists are opened. To-mor-
row the subscription list TO the Denver & Rio
Grande 1880 00G 5 per cent first and refund
ing mortgage bonds will be opened, but the
chances are that ii will be closed Immediately,
owing TO the heavy advance demand for the
securities. These issues secured by a
mortgage on $500 miles of road and pledge
of outstanding second mortgage bonds, together
with $50 1000 of Western Pacific stock. the
character of the security and the equity insur-
ing a public interest in them.
There was some Improvement last week in
the metal shares, apparently based upon
brighter outlook in the metal trades. There
has been better demand for copper in recent
days with the result that the leading producers
and agencies have advanced the price of cleo
trolytic fractionally sales of several million
pounds II is yet too early to make any state
rnent as TO whether the buying under way