New-York tribune., 1909-03-28
FINANCIAL AFFAIRS
SHARP G4TNS IN STOCKS.
SpecuIatiTe Operations Expand
Bank Statement Figures
Encouraging.

In the two hours Of trading interest in sPecu-
latjon showed broadening tendency on the part
OF the professional element. prices advancing "h
an aggressive buying movement Which lell Tue
outstanding short interest fairly well coFeIeu
at the close especially in the metal shares, Con-
solidated Gas and the Hartman issues IotaL
dealings in the short session were in excess OF
the entire operation in the five hours OF business
in Fridays market. but no noteworthy increase
in commission house transactions was reported
Although at the opening so-called speclaitles
were conspicuously active and strong, the gen
eral market shared in the improvement before
the end of the first hour, with new high prices
on the current speculation for Union Paclnc
Southern Pacific. Amalgamated Copper, Read
ing United States Steel common and New YORK
Central American Beet Sugar and Mexican
Central among the specialties again were feat
ures. while the curb further strength and &C
tiyity were reported in American Light and
Traction, which in the last few days has en-
loved an advance of upward Of 20 points. The
fact that experimental sales to test the strength
of the general market were not successful en-
couraged something in the nature of enthusiasm
in bull circles at the close of the day, but there
was no indication in the volume of commission
house business of any coming response on the
part of the public 10 Wall Streets invitation TO
buy stocks al current quotations, in spite Of the
fact that money is cheap, with every indication
of remaining for time to come. The
statement of the Clearing House banks showed
by the average compilation increase in re-
serve Of 81 S73 200 an increase in cash OF ST.
106600 against Fridays estimated decrease of
more than S3,000,OO0, and a decline in loans Of
So. .033. 800. In the statement of actual condi-
tions as Of Friday night reserves presented a
decrease of So $1,000 cash a small loss and
loans a gain Of S1O2720OO while the trust
panies also showed a gain in loans and small
contraction in reserves Total average reserve
Of the hanks now stands at S16779675, COM
pared with S39.7SS.525 year ago and S13,-
1925 in 1907. The general stock market
closed strong and unusually buoyant.
The movement Of money last week was
heavily in favor Of New York, and the increase
over recent preceding weeks suggested further
large currency shipments to this centre This in
connection with easier tendency in the for
eign exchange market, discourages any eXpecta-
ton of higher rates for loan accommodation in
the near future, and likewise does not hold out
any promise for operators in securities who
would like TO see values at a lower range It
does not cost much TO carry stocks at present,
and in the absence Of developments Of an un-
settling character professional speculators find
1t unsafe to make extended commitments on the
short side OF the market their only chance OF
big profits in the immediate future apparently
lying in the possibility Of forced liquidation
based upon a loss of confidence on the part of
speculative and investment holders Of securities.
It is reasoned by the advocates Of lower prices
that. in view Of the decentralization in the metal
trade. which is supposed TO furnish the best
barometer OF general business, and the great
expansion in values IN 1908. from which there
has been no important decline, quotations are
too high. but such argument does not count
for much when holders OF stocks moth
ing ahead warranting liquidation and refuse to
sell. Though prices may be too high in stocks,
grain and general provisions talking that a
decline ought TO develop will not bring about
lower prices. and IT is not profitable occupa-
ton at present in trying TO show why every
thing that IS too high should come down. If.
however, current price ranges artificial they
eventually Will fall just they have done in
copper and steel II is a question now whether
or not the latter are too low. In steel products
prices are near the cost OF production and the
outlook for big earnings In the balance of the
year is extremely unpromising.