New-York tribune., 1909-07-03
FINANCIAL AFFAIRS
SMALL STOCK GAINS.
Shares of Roads Under Reorgdni@d-
ton Weak Exceptions
Banks Gain Cash.

Transactions in yesterdays stock market were
light in volume and were made up in great part
of the operations of the professional element
In the leading issues prices exhibited an ad-
vancinc tendency in the best part OF the day,
while throughout the list, with the exception OF
stocks Of certain companies that are In process
Of reorganization. the undertone was strong
without material fluctuations in quotations.
Sharp declines were reported In Third Avenue.
Chicago Great Western and Western Maryland
on liquidation by holders who did not care 10
pay assessments and on pressure from the room
traders the latter taking advantage of the actual
selling to make quick turns on the short side
that proved extremely profitable, especially in
Third Avenue and Western Maryland. The
drastic reorgani nization proposed for the Third
Avenue involving assessment OF S25 snare
IS enough TO encourage actual and speculative
selling of the stock, YET in spite OF the heavy
amount Of money demanded from the stock
holders which may be reduced after the Public
Service Commission gets through with the plan'
the future Of the property is promising enough
10 encourage the acceptance Of the terms oy
people who can afford to pay the assessment
The same thing cannot be said Of Chicago Great
Western or the Western Maryland Chicago
Great Western seems a hopeless proposition
unless taken over by some larger road. the out
look for which appears rather discouraglhg AT
r1resent The strength of the general market IN
tho face Of extreme dulness was a factor that
encouraged some quiet buying by active traders.
but nothing in the operations appealed TO out
side interests, commission house business belAg
almost at a standstill both investment and
speculative account. No attention was paid 10
tbe cotton report and the sensational Eise in
prices on the Cotton Exchange. even LouslVHe
& Nashville and other stocks that might be eX-
rected to be affected failing TO show the sIRht-
est response Among the developments that
served TO strengthen bull confidence was the
publication of the May earnings OF the New
Yorl, Central Lines showing an increase In gross
Of 80 e235S1 and gain in net Of s1585'9O6, OF
which the New York Central & Hudson RIVER
eIJpDlied s9231S5 IN gross and S639,9Sl III net
Though the local banks have lost a consider
able amount Of money on gold exports and on
their operations with the Sub-Treasury In the
current week receipts OF currency from the IN
terror have been heavy enough to bring about
q net gain in cash holdings in the estimated
movement of funds It IS not unlikely that to-
DAYS bank statement Of averages may be com
pIicated by changes in loans incident TO the
preparations for the July interest ana olVldehu
disbursements, but there has been nothlhg III
the course Of the money market in recent days
that warrants the prediction of material con-
traction in reserves, while, In view OF the hght
volume OF business on the Stock Exchange snu
the heavy receipts Of currency from out-oI-toWh
points. it is quite probable that cash and re-
serve holdings, both in the exhibit OF averages
and in the statement of actual conditions as OF
last night, will show Improvement as compared
with week ago, when the surplus stood at up
ward of S33 100000 Doubtless the banks VIII
month unless there should be tremendous eX-
mansion in speculative activity, involving q
heavy gain in loans, but before the middle OF
August calls upon this centre for money IN
large amounts will develop, while throughout
the early fall the movement against this city,
from all Indications viii be extremely heavy, ow-
ing TO the demands that will be made upon IN
terror banks in connection with the financing OF
the harvests and the inquiry for accommodation
from mercantile quarters incident to an ex-
pected active autumn and winter trade; and, as
freouentlv pointed out in this column, the in
terror banks will be compelled to withdraw bal
ances from New York in order TO meet home
needs. Sterling exchange was strong yesterday
and further amounts of gold were engaged for
shipment to the Argentine for London account,
making the total on the South American move
ment since January 1 faIoTe than S26OOOVOo and
to all countries more than S61,0OO,OOO.
Reason for the recent bullish attitude of the
larger number Of well informed cotton operators
is found in the governments estimate OF
ditions in the cotton belt of June % the fig
ures OF which, showing a percentage OF 74.6,
were made public yesterday. This compares
with S11 a month ago, SD at this time last
year and ten-year average Of sos. AS the
acreage this year shows a material decrease
from that OF the last three preceding years,
present conditions are not promising for large
yield in 1909, and in view of the apparent light
worlds supplies and the growing demand for
Consumers demand which from all indications
will be heavier than known in Many years
there evidently is little chance of anything in
the nature of cheap cotton in the course of the
next twelve months. The ten-year average de-
terioration in cotton conditions between Nav %
and June % is only 6 per cent while the con-
dItion lost between these dates this year IS & <
I)er cent. more than ten times greater than
the tenyear average discloses