New-York tribune., 1909-04-07
FINANCIAL AFFAIRS
STOCKS CLOSE LOWER.
Leading Spectators JForh for Re
administering Rates Higher.

1-,ao,,1ar r,o,-enents marked the course or
trading in yesterdays active stock market Win
the final tendency in the direction OF rover
quotation level. Commission houses were sellers
on balance in most parts of the list, and though
the familiar operatfon by professional specula-
tors Of bidding up values in one part OF Ie ''9t
while selling elsewhere was noted throuehou'
the day the movement failed 10 prevent a gen
eraI lowering of prices, the leading shares eHu-
ing AT net losses Of / per cent and more Ag-
e,ressive buving of the Rock Island issues prob
ably for effect on the general market resulted
in a higher range both for the common ana Ile
preferred. the latter selling at its best hEuIe
since 1906 to the accompaniment OF rumors OF
a coming dividend. which apparently were not
founded on information of that character from
official sources In recent weeks there has been
no buIlsh announcement from the so-called IN
siders on Rock Island, and the chances are thaI
Yesterdays movement in the shares was due en-
tireIv to the manipulation of Wall street inter
ests in no way connected with the ROCK IsIahu
propertv. National Lead, Wisconsin Central is
sues and Mexican Central certificates also were
strong features Interborough- Metropolitan pre-
ferred was under pressure IN the greater parI
Of the day, its weakness having sympathetC
effect upon Third Avenue, which lost 212. trans
actions in these securities in the early dealings
evidently being conducted by certain traders IN
the hope that the selling would induce hqulda-
ton in other departments Of the market Al
that time however, the movement passed Win
ont influence on prices, which did not present
decided trend until the last hour OF business,
when the weight Of profit taking became heavy
enough 10 carry most securities lower. The
larger speculative interests apparently were
anxious to shake out the weak bull accounts
and TO encourage the development Of bigger
short commitments. Little new buying deNel-
oped on the decline, and commission houses as
a rule thought the recession would run further
Investment buying was reported in American
Telephone and Telegraph, the demand from TINS
source attracting unusual speculative interest IN
the stock and in the company convertible
bonds, which are most favorably considered by
investment houses
lending rates are at a level which indicates
that money at this centre practically is drug
on the market The banks have surplus Tor
which they cannot find employment, but not
withstanding this banknote circulation con
tinues TO expand, bond secured notes increasing
in the last month more than $1O,0O0,0OO. The
faults of our currency system are brought for
chilly to mind periods of plethoric conditions
in the money market S we'll at times of
monetary stringency, and just as long as Con
gress fails TO reform the currency laws on d
scientific basis other nations will have diff
Guilty in securing our gold whenever they may
desire TO increase their holdings In March the
actual amount of money in circulation in the
country showed an increase of upward Of 81
100000 but the gain was not brought about by
the addition TO the supply of a gain in gold,
large amounts of the latter leaving the country
and being offset as far as circulation was con
cerned by the gain in the amount OF national
hank notes outstanding. Government bonds held
nv the Treasury against deposits Of government
.r,,rde IN the hanks declined in March $1,000,
O00 owing to the surrender of deposits and the
bonds returned to the banks were transferred to
circulation account. Withdrawals of govern
,nent deposits do not serve TO tighten money
rates for the good reason that against the bonds
released new circulation Is issued, while as a
consequence OF the federal deficit the Secretary
Of the Treasury is compelled to pay out on rev
enue account the funds Withdrawn for the
snecifc purpose OF increasing the national work
ing cash balance. The market for government
bonds is inactive. Banks that received these
issues in the first three months of the year on
their release as security for public money would
have found no profit in selling them, and so
they we're used to swell further our redundant
circulation e.
If foreign banking houses continue to buy
stocks in this market sterling exchange may
he maintained at a level below the GOLD shipping
roint: otherwise Paris doubtless will be able to
increase its holdings OF the metal at the ex-
pense of New York. Imports of merchandise
are increasing, while exports are light in volume,
and as a result the supply Of exchange on mer-
camille account is lighter than the demand with
the security markets the only probable source
from which exchange may be drawn in volume
in the near future And there is no certainty
that Europe will follow up the buying move
ment of American issues reported in the last