New-York tribune., 1909-12-13
FINANCIAL MARKET
STOCK PRICES STRONG.
Wall Street Sentiment I'm
proues and Higher Quota
fions Hoped For.

future of money. business and securities
was more optimistic than at any time IN
the last two months. The conservative
and businesslike recommendations con-
tanned in the Presidents message. the
reduction by the Bank of England Of its
minimum rate Of discount and the gen
eral belief that demands Of labor for
higher yes would be settled by arbi-
iration along sensible lines contributed
To the stronger tendency in quotations
and induced increased interest in trad
ing. both from the professional element
and the commission house following.
Tho excellent prospects for the winter
wheat crop, as reflected in the govern
ments monthly compilation on agricult-
ural conditions and the large earnings
reported by railroads in all parts Of the
country. including marked gains by the
Pennsylvania. the Erie. the Atchison
and the New York Central. also served 20
encourage operations for the rise. ad-
vantage OF which was taken by many
careful stock market interests 70 convert
paper profits into cash Notwithstanding
the character Of bull transactions that
apparently indicated a determination on
the part Of a substantial speculative ele-
mont 10 bring about still better prices
lefore the end OF the year.
The stock market has been strength
ened by The heavy liquidation OF recent
weeks. evidence Of which is presented in
the material contraction that has taken
place IN bank loans in the last two
lieve that bull operations at the mo-
ment viii result IN only a passing up
ward movement the larger number II
commission houses appear 10 ne con
WINGED that barring the development of
radically adverse factors. the general
tendency Of prices viii ne in the direc-
tion Of higher levels We'll into the new
year. The latter theory is based upon
conditions already mentioned and upon
the expectation that early in 1910 there
viii be an active investment demand in
cident 10 the heavy interest ana divi-
dend disbursements that will be made
In January estimated az upward Of
S2oooooop0 These payments doubtless
viii be financed without disturbance IN
the money market but for a time. at
least, rates for funds NAV be Sigh
enough 20 discourage new commitments
for bun account and involve the nec4s-
sitv q the liquidation OF stocks carried
upon borrowed money. Ruling rates for
loans are by no means easy. with the 70
serves or the Clearing House institu-
uons not FAR enough away from a def
iCit TO encourage tho idea Of 'relaXa-
tion in quotations Al present.
Perhaps THE best assuranco Of future
betterment IN securities prices is found
IN The absence of aggressive speculation
In the current market and I'm the att
tude of the larger financial interests, 70
maintain stability IN market movements
rather than 70 help ont spectators who
would like % promote boom that under
present monetary conditions would soon
END in a serious collapse Transactions
FOR cash are light in volume and invest
wert buying is almost al standStin.
though bankiuC houses are willing 10
finance new securities issues in the con-
hdent expectation that good public
market viii develop in 1910. The fact
that tha railroads ana Industrial corpora
tions that need new capital 10 meet ma
turing obligations and 10 handle the in
creased business that is promised re-
Ceive ready barkers among our large
financial concerns offers reason for con
ddence in the outlook for the investment
markets while il suggests The probabil-
ity of money supplies I'm the first quar-
ter ~ the new year heavy enough 70 take
care Of rhs requirements of Wall Street
and the business community al large. II
also suggests the theory that our bank
ing interests closely associated with for
eiEn financial centres b.=e looking for
ward 70 the p'acemerVof p considerable
amount of European capital fn this
country
A better demand Is reported Tor the
copper shares The steel issues. railroad
stocks. such as PennsyIvauis. New York
Central Union Pacific. 81. Paul. Norfolk
& Western and Wabash preferred. the
last TWO named finding many buyers who
believe that important developments af-
fectinE th- TWO properties represented
are pending The rise Ia Norfolk q
Western has been accompanied by the
report that the road viii return TO the
control of the Peunsy lVanla. with \ E
DeT cent guarantee which. 90 course.
would materially enhance the actual in
vestm-ur value of tho security. W hiie the
movement IN Wabash preferred appears
20 convince the Street more firmly than
ever that the Wabash company viii form
a link IN line TO the Atlantic aboard.
with either the LehiEh Valley or the
LackaV anna the Eastern end As the
PeuusylVania Railroad Is tho largest
beneficiary of the active business IN the
lr0u and steel trade. n is not surprising
that The prosperity prevailing in that in
oustrv encourages interest in Pennsvi-
vanis stock. and particularly just now.
as from fEe tEurrs OF the Cpmpanvs
earnings Tor the year ended June 30 Il
can be shown that even with its in
creased capital liZatlOn tho road IS able
% earn upward Of 10 per cent on its
stock under receipts that are not al an
abnormallv heavv Both Pennsylvania
and New York Central stocks are sell
ing an price level that - relatively low
in view Of tie position Of the two prop
critics and the great Increase in earnings
that must develop as a natural COnse-
ouenCe Of the growth Of population and
manufacturing industry along their lines
and from The increased facilities for
handling traffic that viii come with tine
completion of terminal improvements iu
New York
Railroad earnings iu tho month Of
November present larger percentage
Of increase than IN any preceding month
iu the current year. Companies report
ing show an aggregate Of gross earn