New-York tribune., 1909-01-18
FINANCIAL AFFAIRS
LIGHT WEEK IN STOCKS.
Bull Increment Pauses-Bonds an
Demand-Money Easy.


tion Of aggressive activity for higher quotations
from the prevailing level OF values. The more
important Wall Street interests showed no dls-
position to continue their campaign for petter
figures though they stood ready to protect tne
market on signs OF weakness whlie 1he puolic
was entirely out of speculation as far as the
long account was concerned, save IN cases where
uneasiness over the hesitancy Of prices induced
LIQUIDATION Floor traders made unlmporldnt
commitments, and while they were unwilling u
take the initiative in creating market movements
they were quick to follow any indication or sup
stSntial operations either side or the account
the bear position appearing to be more IN la'"i
than at any time in recent months. Ihe pear
party In Wall Street has been strens'heneu
since the Consolidated Gas slump. but In we"
of the easy position Of money and the IAIse
accumulation Of securities in the hands OF the
financially etrong q protracted campaign TOT
lower prices does not appear prooaoie' thoush'
of course the development Of seriously ADVERSE
factors would tend to unsettle values for time
A big railroad receiEership, for instance, OF
radical change in the conditions underlying the
intrinsic worth OF our investment securi.ies %
woald serve to place the bears in clover Whiie
a sudden determination Of the chief hoioers ol
speculative stocks to distribute their accounts
also would bring about lower level or quota
tons From current indications conditions gov
erning the real value Of investments VIII cnahse
only for the better, and from what may De
learned from inside sources there is no infehtioh
among the largest market interests to part with
their stocks at current figures. Ihese inIeres's
can afford to wait. There were various ruIloFs
in the Street last week affecting the cTedlt or
trunk line railroad. and the fact that the Erie
shares were sold in heavy amounts helped 10
encourage the advocates OF cheaper prices
There are many conservative observers VINO
believe that a complete reorganization OF the
Erie would be the best thing that cou!d haPpe"
for the future welfare Of the property
Erie's earnings are improving, but the com
nanv needs vast amounts of money TO place II
upon a paying basis, and at the moment thete Is
considerable doubt as to the company aolitS
70 secure the Endorsement of the Public Service
Commission to increase its already enormous
bonded indebtedness. Friends Of the company
may go down into their pockets 10 supply tiie
necessary cash, but this expedient alreaoy mas
been adopted to an extent that suggests lhe
tnadyisability Of further financing OF tnls chaI
acter Erie is suffering under the heritage Oh
mast mistakes In MANAGEMENT and reorganiza-
tion and II now begins to look as II some drastic
methods would have to be employed 10 reneEe
the company OF its financial troubles ana u
place Il on q basis that would give 1t pernia-
nent, solid financial standing. There is no rea
son. however, why the position OF the trle
should create alarm among general investors
though II readily may be seen that X furnlshes
something of a club for the pro1essiohal oeai
party in Wall Street. People who bougnt stochs
in the December market III the expectation Oh
been grieyously disappointed. The public mas
made no attempt TO bid for stocks at the high
prices prevailing, and as a consequence man!
operators are tied up with stocks FOR whlch
there is no market. except at cheaper quotations.
which NAV be brought about in the near future,
unless some powerful stimulant is injected into
speculation Traders on the floor who follow
the general tendency OF market movements II
respective Of conditions affecting intrinsic
worth at the moment are exhibiting confidence
etc xrin not
they must decline but, as noted before, tney
exercise wise caution in confining their dealings
to quick turns pending the development OF real
leadership on the bear side OF speculation
No outside investment demand has developed
for stocks as a result OF the January dividend
and interest disbursements but the inquiry for
railway mortgage issues has shown consider
able activity since January /, with indications
pointing to an increase in the movement as the
year progresses. Most stocks are too high 70
appeal to investors, while the fact that their
prices have more than measured the changes
that have taken place in money and business
since the period Of recuperation set in naturally
acts as a restraining influence in purely specu-
lative operations for higher figures. The bond
market presents many favorable opportunities
for the safe investment of funds. On the STOCK
Exchange and over the counter transactions
have been in moderately large volume in the
last two weeks. new issues having been readily
taken up and many times oversubscribed. The
railroads in the market for more money, and
the confidence shown by the transportation COM
panies over the future of the railway business
in this country is strong argument in inducing
willingness on the part Of bond buyers TO take
all offerings at prices that return a fair yield
on the investment. The vast supply or idle
money in the United States is making for higher
quotations for bonds. and il good sized decline
should take place in stocks the money market
would become important factor in creating
q more active demand for these issues from the
speculative community. The oldtimers in the
Street are bulls for long pull and do not ap-
pear to be much concerned with current irreg-
ular fluctuations. They believe that later
there will be a rapid development in the coun-
try's industries which will continue over
period of two years at least; they not
alarmed the prospects of tariff revision.
over the outcome of the governments various
suits against corporations or the impoverished
condition OF certain concerns. They are bank
ing on the countrys growth and constant in
crease in gold production eventually TO carry
prices for all securities to higher range
Sterling exchange last week touched the high
est point for demand rates since November, 1907.
Gold exports continued money was extremely
easy, thirtyday money recording a new low
level and the American money market, together
with the position OF the market abroad. sug
gested further Withdrawals Of the precious metal
from this centre IN the course of the next few
weeks The Bank Of England raised its mini
mum rate of discount to per cent against
2I2 per cent, which had prevailed for many
months In an effort 70 prevent further ship
ments of gold 10 Paris. but'the movement failed
to exert any especial effect upon Paris exchange
London, and the chances are that the Bank
Of France will secure most. II not all of the
South African gold that will be offered in the
open British market to-day. Selling of Amerf-
can securities for foreign account has been ac-
tive in recent weeks. This operation has been
an influence in taking gold from shores. but
the fact that the metal is going TO Europe pro-
duces no uneesiness in local financial circles.
owing 10 the large supply here and the pros
Of Of ff,,ds i,ta