New-York tribune., 1909-05-19
FINANCIAL AFFAIRS
STOCK T4LUES HIGHER.
Reading and Steel Common Near
Best Prices of the Year Sterling.

Early losses in the stock market as RUE
were recovered before the close advances from
the low levels running beyond one point IN many
issues notably Reading and United States HteeI'
the Improvement resulting chiefly from cover
ing of shorts There was little public interest III
the dealings. and the efforts Of the tradlhg ere
ment TO bring about material dechneS III 'iio
morning were not productive of important re-
actions though moderate weakness developed in
some of the more active shares, which to some
extent were affected by foreign hqudaton OF
American stocks and weakness in the LoHdoh
copper market. There was no disposition SHOWN
TO sell stocks short except Tor quick turns Whlle
on the appearance of some fairly aggressive
buving in the afternoon transactions for long
account presented a substantial expansion puiI
operations being influenced by the character OF
the buying in United States Steel Union Paclhc
and Reading the action of the last named ap-
psrentlv convincing advocates Of higher prices
that important backing is sttn behind the mar
l1et In view of its recent thirty point rise, Read
ing's adherence TO a level close 10 the top III
the last few days of reaction naturally Is not
an encouraging exhibition for bear spectators.
There are any number OF bears on the exchange,
though their attitude is one of extreme caution
Nevertheless, they believe that speculative con-
ditions soon will bring about lower values.
Reading closed at a net gain Of H. a trihe more
than q point under the best price of the year,
while United States Steel ended only Is under
its high point made May :, transactions In
this stock, Reading, Union Pacific, Amalga-
c
Maryland supplying a large proportion or the
DAYS small total Of sales. The last named stock
broke sharply on reports Of an assessment or
SO and recovered part Of the loss before the
close. Chesapeake & Ohio was strong through
ont the dav on a fair class of buying, the move
rlent being based upon the Street theory that
the company, under the HaWley management,
will become an important trunk line property
Current movements in the foreign exchange
market suggest the possibility Of further ship
10Th Dor ric and
though monetary conditions at the centres
named do not require the export Of the metal
from here. The scarcity Of exchange bills, now
ever, at a time when the demand for remittance
is active maintains sterling rates at the export
level for gold bars. shipments of which are re-
stricted only by the ability of the local assay
Office to supply the demand Just as long as our
imports of merchandise continue in heavy vol
ume and outward movement of food prod
ucts shows no important gains over the present
small outgo while money remains easy at
New York exchange viii rule at high range,
with the tendency in favor Of a flow Of the pre-
cious metal to Europe. Exports OF gold since
the first of the year have amounted to S4S,-
591 573 Austria is increasing its gold holdings,
as reflected in its demand upon London, while
the Bank of France is following its usual
practice in adding TO its supply whenever inter-
national exchange and monetary conditions offer
the opportunity its present ownership Of the
metal amounting to more than ST00Ooo00O an
with this period year ago. With the exception
of the Eank of England. all the European insti-
tutions have enlarged their gold account i'm the
last twelve months. the total holdings showing
2 gain to the amount Of upward of S293,O0O,0O0,
while the gold coin and gold certificates in cir
Culation in the United States in the same time
have decreased. Against cur losses in gold may
be noted a large expansion in national bank
note circulation. which stands in the neigh
horhood of the excessive amount of upward of
S7O0000O00, a material gain over the amount |
outstanding before the panic period when there l
was an actual need Of additional paper money.
The expansion since then has not been war
ranted by any requirements Of trade, but il has
served II foster dangerous speculation in stocks
and commodities
The large increase in foreign gold holdings is
reflected in better demand abroad for invest
ment securities and in local banking circles il |
is believed this movement eventually will extend
actively to American issues. French investors
are buying in the London market, chiefly Jap
anese and Russian bonds while at Berlin easy |
money is increasing the inquiry for investment
securities. The favorable progress of Industrial
affairs in this country soon should be a factor |
i'm attracting foreign capital TO the United |
States, though at the current high range of |
prices it is likely foreign speculative inter-
ests will be much of a factor on the long side |
OF the stocks European capital is expected &c |
move into tie offerings of railway mort
gage issues. which are being put out AT figures |
that make them Attractive investments Lon
don speculatoTs in the local stock market have |