New-York tribune., 1909-10-08
FINANCIAL MARKETS
BULL TRADERS ACTIVE.
4CTIVE.
Prices for Stocks Up, Though Hea0y
at the Close-Time Money Firmer.

Stocks were strong in the best part Of the
dav on an active volume of business. which,
however. was well under the record in Wednes-
day's market when large proportion Of the
dealings was supplied by United States Steel
common. This issue though heavily traded in
was not manipulated 10 the extent reported IN
the preceding day but bull interests expressed
the utmost confidence in a resumption Of vigor-
Gus operations for higher prices in it. despite
money. market considerations. while the general
sentiment in speculative circles, as represented
in commission houses favored the idea OF
general rise from the current level, irrespective
of monetary conditions. Current reasoning III
the Street is unsound and the stock market Is a
risky channel at the present time for the placing
Of money on the expectation that nothing can
happen 70 upset bun calculations The danger
Gus speculation that has been going on in Steel
common ought to encourage great Conservatism
al this particular period, but on the contrary
i f. attracting reckless transactions and pub
lie BUYERS who apparently believe stock is
never a good purchase unless il Is selling AT a
fancy figure. The speculation in Steel has been
financed by London and New York, and the
enormous amount Of the stock that is being
carried upon borrowed money is element
of strength for The general market at time Of
declining bank reserves at home and abroad.
IN the late afternoon the market suffered
unimportant reaction. with the chief weakness
in the active list in Amal gamated Copper, which
closed more than point under its last price in
Wednesd 3y's trading. Little stock came out on
the decline, which appeared TO be due TO profit
taking and efforts by sold out bulls to get back
their lines at cheaper figures, especially in Steel
Reading and Union Pacific small bull pool
was successful in advancing Missouri, Kansas
& Texas more than two points, while bull opera
tions in American Car and Foundry. Chesa peake
q Ohio and Panhandle were effective in
tablishng these issues on a higher plane. The
advance by the Bank of England in its discount
rate was without effect upon prices. but in
banking quarters il thought that the move
ment by the English bank due much
uneasincss over the speculative position here
and at Berlin a. TO the decline in its reserve.
Speculation in stocks yesterday did not run
along the conservative lines that money market
conditions suggested. manipulation for higher
prices and increased buying for public account
marking the course OF operations in the chief
part OF the five hours of business. The fact that
call money ruled under . per cent apparently
encouraged the unsound idea that cheap rates
soon VIII develop, though general conditions af-
fectng the loan market fOreshadoWed the de-
Nelopment of an acute situation in the event Of
q continuation Of active bull speculation in Sc
CuriIles. The position OF money is inherently
sound but reckless transactions in the stock
market not only will tend to create disturbance
in Wall Street. but also Will have an adverse ef-
feet upon our Industrial activiues which are en-
tering period Of expansion that can be checked
only by strained credit conditions. The Bank
discount 10 3 per cent; the Imperial Bank Of
Germany increased its rate last Monday and
doubtless VIII place il a higher level next
week. and open market discounts at all Euro
pean centres are moving toward a dearer basis
Wall Street believes that il viii be able 10 boI-
row any amount of money abroad. but already
American finance bills are being Disseminated
against at London, and precautionary measures
being adopted there that may make il ex-
tremely difficult for New York TO secure gold
especially as it has no credits at London on
trade or financial account. 1t estimated that
we owe Europe SJO0O0OO0O on direct loan ac-
count and yet spectators anxious 10 ex-
tend their credit al a time when we are heavily
able 10 quidate debts through shipments
Of merchandise. Cotton exports. il is true are
now being made IN fair volume at high prices
and are creating q considerable amount Of ex-
change, but shipments OF bTeadstufs show a
tremendous falling off from last year while inn
ports Of merchandise exceed 10 a large extent
the general outward movement of our products.
Money may advance TO d rate that VIII at
tract some gold 10 this side Of the water but
this possibility contains warrant for an ex-
tension 0f stock market speculation The banks
here are loaned up 10 about the limit Of their
reserves ana the same thing may be said OF
the banks 1T the central reserve cities of Chi
cago and St. Louis. the recent statement Of the
reserve for the three cities Of 2J.4U - per cent
being the legal minimum Tor cash reserves
-eiital deposits The Bank Of France has "A
reserve oi - per cent against its 81 900 600 900
81 notes outstanding, and the Bank Of England
according 10 yesterdays weekly return has a
reserve "t io--l. These banks are not run for
pT'nI Dut III the welfare OF the general situation,