New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-12
FINANCIAL MARKETS
L. u. At NEW HIGH RECORD
Stocks Close Strong and 4ctiCe-
Time. Money Firmer.

Stock market prices opened strong on an active
volume Of business. but sold down before the
close Of the second hour much a point or
more in the prominent shares. this movement.
however, being followed by a resumption OF ag-
gressive buying in the afternoon in the course
Of which quotations moved to the best level OF
the day and ended at net gains in the larger
number Of securities. Renewed operations for
the rise encouraged by the ease with which
the market absorbed sales and the evidence OF
substantial support from the leading interests,
while sharp advance in Louisville & Nashville
and Atlantic Coast Line. directed in part against
the shorts, also served 10 help the general list.
on the theory that a bear position at present is
untenable and likely TO be productive OF heavy
losses. The shorts in the stocks just named
were compelled TO cover on price movement
that showed a maximum gain OF more than
points for Atlantic Coast Line and more than
points for Louisville & Nashville The Street
had the rumor that Louisville & Nashville would
issue additional stock, involving valuable rights
10 the shareholders. operation which. OF
course. would benefit the Atlantic Coast Line.
which controls the Louisville company. Chesa-
peake d Ohio, the Hill shares Southern Rail-
way. New York Central. Union Pacific. Reading,
Northwest Consolidated Gas, Hooking Valley,
Amagamated Copper and United States Steel
were among the strong features in the afternoon,
the buying representing purchases for both
counts. including moderately heavy proportion
of commission house orders for public operators.
American Beet Sugar supplied the only impor-
tant weak spot in the market its decline APP
parenty being due 10 liquidation OF pool hold
ngs on disappointment over the failure Of re-
cent dividend rumors TO bring forth results The
general market gained in strength and activity
in the last hour, new high records being made
by many issues. including Union Pacific. which
sold at 207 on buying that suggested that at no
remote time some public announcement may be
made regarding the plans of the Union Pacific
directors for the spending Of the large cash bal
ance hand received from the company's sale
OF securities in other roads Time money
distinctly hrmer while call funds were unchanged.
In view OF the unfavorable conditions that
have prevailed for so many months in the coun-
trys export trade the prospects of bumper grain
crops deserve especial consideration in connec-
ton with discussions relating TO the future OF
the foreign exchange market. A surplus OF grain
available for export TO Europe is needed. owing
10 the fact that for long period the United
States has been In debt on international eX-
change account and the tendency OF prices for
breadstuffs toward lower level encourages the
expectation that there will be a more active
outward movement of wheat and large ship
ments Of corn after the crop has been har-
vested II Europe becomes a liberal buyer OF
our grain and cotton our bankers may be able
TO bring in gold at time when the needs of the
money market may require some sort Of assist
ance and the return OF the metal TO this side
after the enormous exports of the last seven
months, would be Of far greater benefit TO the
general situation than increase in bank
note circulation. which appears probable unless
we can secure gold In other countries. In the
last fiscal year net gold exports were s47.477,S29
while since the panic Of 1897 there has been an
addition TO our bond secured currency in circu-
lation Of SIP O00 900. The currency. which al
ready is inflated. is encouraging imitation In the
speculative markets. yet, owing TO the faults OF
/ our redundant and ineastie currency system II
| is not unlikely that I'm the autumn we shall run
into period OF extremely high rates for funds
followed by subsequent relative ease and further
| reckless speculation in stocks and commodities
There will be an ample supply of a certain kind
OF money in the country I'm the fall. but the
outlook indicates that surplus funds here will be
reduced 10 a level that will cause heavy liquida-
tion OF Stock Exchange loans and consequent
losses 10 buyers on margin at top prices A
| deluge or selling orders forced by high money
VIII enable the larger interests TO refill their
bags. with the practical surety Of again being
able 10 advance quotations under the influence
| OF return movement OF currency TO this centre
ana expanding industrial activity
! Unfortunately the money market enters the
crop moving period without the backing OF a
national credit balance abroad and the advan-
| tage OF large exports OF food products and %, :
ton IN the months TO come therefore is apnaren.
! Already bills against future shipments of grain
nave appeared In the market. while the state
ment OF domestic exports orSthe last month the
ugures Of which were received yesterday. shows