New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-13
FINANCIAL MARKETS
HEAVY DAY IN STOCKS.
Foreign Houses Ictire Buyers
L. II. at Nc7c High Record.

Total transactions in yesterdays stock mar
ket amounted 10 l,402.S74 shares. OF this bus
ness a large proportion supplied by Union
Pacific New York Central United States Steel.
Reading. Illinois Central. Chesapeake & Ohio.
Southern Pacific. Pennsylvania. Amalgamated
Copper. the Hill stocks and Rock Island. in
which buying came from substantial sources,
especially in Union Pacific and New York Cen
trial. Union Pacific selling at new high record
and closing ~ a net gain Of points. against
a gain by New York Central OF Ia There was
4 tremendous outburst Of strength at the open
ing throughout the list. while in the larger part
81 the day the tendency in the direction Of
4 higher level, though at the close there were
more net declines than gains. owing 70 selling I'm
the last hour that was effective in bringing
about sharp reactions. Illinois Central Penn
sylvania, Chicago & Northwestern and Peoples
Gas. ia addition to New York Central and Union
Pacific, came through the fve-hour session with
substantial net Improvement but elsewhere in
the active list most securities ended fraCtonally
under the closing of the preceding day. In view
of the extent Of the advance In the morning and
the great increase i'm public operations the af-
ternoon decline was surprisingly small. and II
apparently convinced the bull following that the
campaign for higher prices had by means
run its course. 1t is not unlikely that prices
viii enjoy further Improvement, but the market
nevertheless is in a dangerous position and
should be avoided by the operator who is not
the pOssessor of vast financial resources 4
millionaires' speculation IS under way in the
course of which even some millionaires will
suffer punishment. but at the moment the
various clements I'm the market not consid-
ering the possibility OF loss. and despite warn
ings by experienced observers Of speculative
movements the public is buying stocks at high
prices small margins. Union Pacific as a 10
per cent stock. with the prospect OF returning
more to its holders. is not dear I'm comparison
with other high grade issues. 1t is among the
few securities that may be bought to return
more than 4 Y per cent, and its great intrinsic
value is appealing to investors and SPECTATORS
who are quite confident that its price will cross
25O In the current year. The character Of trad
ing in the afternoon suggested that some Of the
larger interests were working for temporarily
lower quotations and the basis of this idea
cautious short selling was INDUCED in. A large
short interest was covered in the morning
Notwithstanding increased receipts from Gus
toms the Treasury's income account so far in
the current month shows a substantial deficit
and for the fiscal year to date an excess OF dis
bursements ordinary account over receipts of
more than Sl9O00.0OO against s221f2,0I7 in the
same time in 1908. Including Panama Canal
account and public debt, the total excess of ex-
penditures since July ! amounts to s2414OO23
compared with s45,293.467 in the corresponding
period year ago, the large difference between
the deficit of the two periods being due in great
part 10 the heavy payments made last year of
lawful money for national bank notes retired
Expenditures on ordinary account continue TO
increase. and IL win require a large gain in Gus
toms and internal revenue 10 onset the growing
outgo unless a material contraction is effected
in disbursements. the prospects of which are
promising, as il is the policy Of the Taft admin
istration 10 economic. The new tariff ia work
ing in satisfactory manner. but IL is too early
10 estimate on its ability revenue producer
though with the expansion in the countrys in
dustries and the large income that may be ex-
pected from the corporation tax il appears safe
10 predict that eventually the measure will bring
IN enough money to change the government
oencit into surplus In the mean time how
ever the Treasury may be compelled 10 call
upon the money market for assistance through
the medium of the issuance OF short term GER
tincates. against which the banks will be EN-,
powered 10 take out new circulation as the
federal working balance is low standing at tho
moment at only s3S,102s2s. The national banl,
depositaries hold a trfe more than sac Ooo oo0
government funds. but for sound business REQ
sons II does not appear proba BILE that anv Of this
amount will he recalled. The Treasurv's sit
uation must be taken into consideration in dis
cussions affecting the money market and in
view OF the relative shortage of funds in the
national vaults il is quite probable that within
"A short time government financing will becon,a
"A factor in the loan situation
Time money continues frn. with an advancing
tendency, and II speculation In stocks runs along