New-York tribune., 1909-01-14
FINANCIAL AFFAIRS
STOCK MARKET HE4TI
Last Prices .1b0rc the LO7cCSt -
Sterling Rates Indicate Farther
Gold Exports.

Stock market trading was made up in great
part Of the operations of the professional ele-
ment and moderate liquidation for commission
house account. the latter being especially pro-
nounced IN Union Pacific, Southern Pacific.
Reading Amalgamated Copper and ST Paul, in
which maximum losses from 10 points,
with some recovery before the close Opening
prices showed a feeble rally from the closing
of the preceding day. but before noon the entire
market developed renewed weakness on active
short selling which brought out long stock IN
various parts Of the list where accounts were
poorly protected. There indication OF
activity among the prominent interests. except
the low points. when support was offered TO
an extent that induced covering, while buy
ing for commission houses not factor in
the dealings In some of the speCialties strength
developed in the morning transactions. The
character Of the trading. however. not i'm
pressive and il failed to attract outside de-
mand The general market closed with prices
above the lowest. and in few issues net gains
were recorded. notably in New York Central.
Wisconsin Central preferred and Erie. the
strength in the last named being due 10 buying
based on the rumor that the upstate Public Ser
vice Commission would permit the Erie COM
pany to issue bonds to the extent of one-haif
of the amount for which application was made
The closing rally came entirely from covering
of short contracts and a moderate amount Of
fresh buying by operators who thought the mar
ket ripe for reaction in favor of the long ac-
count as a consequence OF the selling movement
OF incident
was a break of points IN Chicago Alton
common which however was not surprising in
view Of the recent manipulation in the stock
| Sterling exchange strong. indications point
| ing to further exports of gold at the end of the
| week. with direct shipments TO London posi-
bility The announcement of the Russian loan
for $3.50, ,0O0, 600 and the Austro- Turkish agree
| ment were without effect upon the foreign mar
| kets.
As far as the bond market is concerned. the
buying for investment account is active. but in
stocks the high prices at which the greater num-
| Der Of issues selling discourage active
movement of capital into this class Of securi-
| ties The hope of lower quotations, however, is
not based on any definite theory. and for the
| present the chances of material declines in
values do not appear promising. especially as
| since the first Of the year there have been an
active liquidation Of weak accounts, an increase
In the short interest and d consequent strength
| ening of technical market conditions A read
| iustnent of prices to a cheaper basis undoubt-
| edIy would bring a large amount of money into
| the stock investment field, and if it were not
| for the fact that the greater part of the so
| called floating supply OF share securities was
| intrenched in the hands OF people who have
| large financial resources and who believe that
| irrespective of investment considerations quo
| tations at no remote period will move TO a
| higher plane there might be a decline that
would bring values to level that would ap-
| peal TO new buyers. The most encouraging
| indication for the advocates of lower prices
| is the growing aggressiveness of the bear
| marty This movement far has been effective
| in CARRYING the general average of quotations in
| the leading shares 3 points under the best fig
| ures of 1908 but in view of the prospects of a
long period of easy money and the holding OF
stocks by prominent financial interests, on the
theory that the countrys industries gradually
| are working into an extended time Of growing
| earnings the aggressveness Of spectators for
| the decline does not, at the moment, at least.
hold out promise of great success for bear op-
| orators
The best chance Of the bears lies in uneX-
pected developments and in the possibility OF
| uneasiness on the part of actual owners of Sc
crrities over government suits against corpora
! lions Fortunately. investors at present are not
| Worrying over federal suits. which are being
tried solely 10 find out whether or not the cor
| porations concerned are breaking the laws. Re
| strictive laws not planned BY tie national
| government and state lawmakers are displaying
| more sense in the matter Of corporate leglSlI-
| ton Railroad earnings are showing gains over
! the poor statements put out year ago. The
| credit OF the companieS has improved wonder
| fully and through heavier transportation re
ceipts and the proceeds from new securities is
sues the roads soon viii become more generous
buyers Of supplies and materials, Which viii
have a most important influence upon the gen.
eral business situation. Our industries are NOV
| ing along In a sober manner. and though stock
| market values have discounted much of the eX-
pected improvement in the OF the current
year. the biggest speculative holders main
| tanning their position the long side of the
| terial weakness develops.