New-York tribune., 1909-06-25
FINANCIAL AFFAIRS
H4RRIH4N SHARES UP.
Bull Manipulation Resumed-Ster-
ling Rates 4dUdnCe.

Though the volume OF business in yesterday &
stock market showed some Improvement as
compared with that Of the preceding day, there
was no great amount Of outside interest in the
speculation, the greater number Of transactions
representing the operations of the professional
element which was especially bullish the
Hartman shares There no news explain
ing the rerna rka bic strength in Union Pacific
preferred. which rose to a new high record at
10. with a net gain of q points, but In the
course of the afternoon a Southern Pacific de-
velopment OF some Importance was announced
involving the formation Of g corporation TO con-
troll the Hartman lines in Mexico already built
and those which may be constructed In the fut-
ure. An ingenious theory put forth re-
garding the advance in Union Pacific preferred
suggesting that the issue would be exchanged
for bonds on a favorable basis, as a consequence
Of the proposed government tax on net earnings
after the deduction OF interest Of mortgage is
sues but the idea received more Endorsement
in official circles than any Of the reports regard
ing the property recently circulated Mr. Harrt-
man is the only man who can tell of future
financing plans Of the Union Pacific, and he Is
taking the baths in Europe. The whole list was
strong in the best part Of the day. the only in
dication Of weakness developing in the early
part of the last hour, when traders sold to some
extent on the argument that in view Of the ab-
sence Of active public support the recovery Of
the last two days had gone far enough, their
sales. however failing to bring out any stock
and being followed by renewed strength before
gain Of 2A; Southern Pacific, a. Reading
27s and Amagamated Copper IL. Among the
specialties Pacific Mail exhibited marked
strength: also Kansas City Southern, National
Lead and Missouri, Kansas & Texas the last
named being bought, it was reported by prom
inent banking house in William street. The
disposition Of traders TO cover short contracts
in the final dealings appeared to be based upon
the evidence Of aggressive bull manipulation by
financial interests who generally have their own
way in the stock market.
The recent decline in stocks, which marked
the first important downward movement in many
weeks. carried values to level that attracted
large amount Of excellent buying and elm
mated topheavy marginal accounts to extent
that brought about substantial Improvement in
technical conditions and encouraged renewed
speculative activity the part of interests who
are anxious TO maintain prices at \ high level
in connection with financial operations involving
the creation of new securities and the market
ing Of them at attractive figures. An enormous
amount Of new securities has come upon the
market in the last six months and all indica-
tions point TO a similar output in the second
half Of the year, owing TO the actual needs of
corporations for capital for various purposes,
and to the large supplies of idle funds through
out the world that must under the influence Of
reviving prosperity seek employment in the In
vestment markets. Europe is beginning to feel
the effects OF better industrial times, and as it
Is large holder OF money II is not unlikely that
its ownership of foreign securities will increase
materially in the course of the next year with
the United States a preferred mart for the in
vestment of European funds. The proba bility
Of higher rates for loans at this centre later in
the season does not bother the Wall Street com
munity at the moment. and though the chances
favor stiff quotations in the late summer and
autumn there is no reason to suppose that dis
turbance will develop that investment and
industrial operations will be interfered with
unless the country runs into period of none
tary and speculative inf1ation-a possibility that
should not be lost sight of at time when
every one Is extremely optimistic, but apparent
ly not realizing the steady increase that has
been going on in paper money supplies ac-
companied by exports Of gold in large volume
and the tendency in many circles particularly
in the stock and commodity markets to over
speculate The fact that everything is running
along smoothly in the money market at present
is no surety that trouble will not again develop
as consequence of our inefficient currency sys-
tenn and the unreasonable limits to which specu-
lators endeavor to carry their operations
Time money is easy and extremely dull while
the demand for cali funds shows some improve
ment owing to the increased inquiry for accom-
modation on account Of stock market specuia-
uon, which again has turned to the bull side
OF the market The loan position of the banks
Is stronger than il two weeks ago. as a
result Of the heavy liquidation reported in the
statement of actual bank conditions as of last
Friday night, and Il is TO be hoped that further
liquidation will be forced on the slightest in
dication Of dangerous speculation in securities
The Bank of England in its weekly return yes
terday, showed unusual high percentage of
reserve TO liabilities for this period of the wear
the figures being more than per cent above
the average for the last nine years The insti-
tuition gained nearly million sterling in its