New-York tribune., 1909-02-19
FINANCIAL AFFAIRS
4CTTVE DAY IN STOCKS.
Sharp Break in Steel and Union
Pacific Weakens General List
Foreign Houses Sell.

Stocks we're under selling pressure IN the
greater part OF tbs day. the movement being
accompanied by declines that ran from TO
points and more in the active list Bear at
tacks upon United States Steel and Union
Pacific common were effective in bringing long
accounts on the market. not only in these is
Sues but elsewhere among the prominent shares
,n which dealings showed a broadening ten
deucv and IN which little support was offered
e+ auy time in the five hours Of business
Though there were no actual news Developments
affecting prices. there was enough uncertainty
and uneasiness over various features OF the
general situation TO encourage decidedly bear
tsh sentiment IN speculative circles, and 1t was
intensified by talk In many quarters regarding
the condition OF Mr. Harrirnen's health. which
was said to be less favorable than generally be-
lieved- Mr.. Hartman has become such an i'm
portant factor in the railroad world that his
physical condition easily can be made a market
argument and a statement in weekly publ
cation that his condition was regarded es grave
therefore encouraged active selling of Union and
Southern Pacific shares The adverse metal
trades situation helped the decline in the steel
and copper issues, but the character Of the op-
erations In United States Steel common sug
gested manipulation for lower quotations. The
decline IN this stock started with sales Of 25.o0c
shares by house that often Is prominent in
the security, the operation attracting active
selling by traders and involuntary liquidation by
weakly margired spectators, which carried the
price to 496z. q low record for the year. Total
transactions IN the issue amounted TO $4,000
shares, against only $1,000 shares on the preced-
ing day. while the entire days business in all
stocks amounted to 5so,476 shares, against less
than $4,000 in Wednesdays transactions.
Atchison stocks offered some resistance to the
selling movement though there partic-
ular pressure against them. Increased activity
in stocks at the expense OF values followed
by a material contraction In the dealings in
bonds from the recent heavy operations, sales
in ell issues amounting IN par value to $4s215o0.
against s5.456.O00 on the day before. Foreign
houses again sold in the local market putting
out upward Of 10000 shares.
The local banks are losing substantial amounts
of money to the ub-Treasury as consequence
OF payments under the recent call by the Sec
retary Of the Treasury for $50 900 900 Of govern
ment deposits. the greater part OF which will be
paid over by the New York institutions, though
only small proportion Of this sum will be on
account OF the national repositories at this CEN
tre. Interior banks paying their portion of
the call through their balances here the effect
Of which. of course, will serve TO reduce our own
bank holdings and bring about lower reserve
in Saturdays Clearing House statement unless
tne eject OF loss IN cden reserve is Offset
by a large contraction In loans Trust COM
panies are handling most of the current new
loan transactions. but the demand for funds
outside of that In connection with corporation
financing is extremely light merchants and
Stock Exchange borrowers showing no dlsposi
ton 10 take advantage of current easy condi-
tions in the market, which at no remote time
doubtless will turn in favor of a better price for
money. Time money is cheaper at present with
reserves below $40 0O0, 900. than il was last
August. when the surplus of the Clearing HOUSE
members in the neighborhood OF $50. 600 900
but il is not reasonable to believe that this sit
uation will prevail for any length Of time es-
pecially as the period is rapidly approaching
when the government VIII be compelled to en-
gage IN further financing a result Of It's grow
ing revenue deficit. Moreover the current ab
sence Of the mercantile community from the
loan market viii not remain a fixed feature.
The countrys business is light in volume. but
the outlook favors conservative growth with
marked expansion following the proposed tariff
legislation at the forthcoming special session of
Congress
The Bank OF England made no change IN it's
rate OF discount yesterday while
IL showed improvement in it's weekly re-
turn. its percentage of reserve to liability
advancing from 1912. last weeks figures TO
5O. SO, which compares with a seven year aver
age for this time OF 4s.9 per cent, though un-
der the level at this period in 1905. when con-
ditions were exceptional and effort ~pas
being made TO strengthen the position OF the IN
stitution, The bank IS szaipi-- In its bullion