New-York tribune., 1909-02-27
FINANCIAL AFFAIRS
RITTER STOCK VALUES.
Trading Generally Professional IN
ChwGcter-Bdallts Lose Cash.

In the absenoe of any indication Of selling
pressure for the account OF commission houses
professional traders who mad snort coItraC'S
outstanding covered early In the day, ana IN tne
greater part OF the five hours OF business the
board room element, rule, maintained q
position on the long side OF the market thoush
expressing further confidence in the theory that
the general tendency Of prices would De IN 'le
direction Of q lower level until the various 1ac-
tors of uncertainty involved in trade condluons
and tariff readjustment had been more fuly as
counted by market values mere Is niue III
centive to buy stocks at present prices. ana sc
far the recoveries from the sharp declines IN
Tuesdays market have not represented an out
side demand for securities There has oeen an
active buying movement for the account OIL
shorts and support from prominent Street IN
terests who have bought TO prevent demorai-
ization in prices. but there has been nothing III
the character of trading that encourages the eN-
pectation of the immediate development Of ag-
gressive bull activity and a long sustained spec
ulation for higher quotations The volume OF
business yesterday showed q heavy CONTRACTION
from that Of the preceding day; 1t was less thah
one-half Of that on Wednesday and ABOUT TWO
thirds of Tuesdays operations, when the total
ran above / 100000 shares. Trading was poorly
distributed and was confined in great part 70
the Hartman shares, Reading, Brooklyn RAPID
Transit and the metal issues. IN Whlcn 1air net
gains were recorded, the metal stocks closing
strong after considerable selling in the carrier
dealings. Atchison common on light transac-
tions made a good record; also AtlanIlc coast
q
and Consolidated Gas. Atchlson was relatively
strong IN the recent general break, and II Is one
of the few stocks that at present are being bought
by interests who take their purchases out OF the
market. Speculative accumulation OF steel com
mon is reported all declines; also Amalga-
mated Copper despite the black name II Is at
present bearing in the Street This stock al
WAYS looks worthless to certain people when II Is
on the downward sliding SCALE but 1t always mas
proved a good thing to hold when bought at
cheap figures Consolidated Gas was helped by
the report that a holding company would be
formed TO take over the Consolidated securities
in other concerns. but 1t was officially denied
According to the known movement of money
in the week. the local banks have gained a sub
stantial amount of cash on their operations with
the interior, but have lost on net transactions as
q consequence of heavy Withdrawals OF govern
ment funds and moderately large exports OF
gold to South America From compilations
made yesterday the loss IS estimated in the
reighborhood of S10000OOO but this may be
modified or enlarged by unknown money move
ments which may be shown In to-day's Clearing
House statement of averages and in the state
Inent Of actual conditions Of last night. The
course of the price for money has not fore
shadowed a large decrease in bank reserves,
though the demand for funds has been so in
active that rates at the moment would not re-
fleet to any noteworthy degree material con-
traction in bank holdings. 1t is not unlikely
that the LIQUIDATION the Stock Exchange in
the last few days has caused q large contraction
in the loan itern-possibly large enough to offset
the decrease in cash as an influence upon the
reserve above legal requirements. There have
been such heavy calls upon the banks since the
first OF the month from the federal government.
which has been compelled to meet revenue
deficit by drawing upon its funds in depository
institutions TO say nothing Of gold exports and
extensive new securities financing, that reserves
Of the Clearing House institutions have declined
in that time, exclusive of this weeks operations,
upward of $50 100000. without any appreciable
advance in money rates. The federal Treasury
will need large amount Of cash in the next few
months TO finance it's growing deficit, and the
local money market will be called upon to meet
the greater part OF the governments require
rnents, possibly at time when a mercantile in
quiry for accommodation will be starting. Mer-
chants and manufacturers have been working
on a basis that has not needed much assistance
from the banks When they feel that they can
20 ahead and make extended commitments for
the future. which will be after they know the
probable changes in tariff schedules, they will in
all probability be heavy borrowers, and most
likely at higher rates than those prevailing