New-York tribune., 1909-04-04
FINANCIAL AFFAIRS
FTRTHER STOCK GAINS.
Shorts Rush to Corer an Steel Com
mon-Bank Statement Figures.

In the two hours of business on the Stoch
Exchange trading was active on an adVancIns
movement of values in the greater part VI .A'
+ir,a earIv losses throughout the active list be
ire recovered before the close OF the hrst louI
Weakness in the initial dealings was due emery
70 a heavy selling movement IN Chlteu 9ta'e0
Steel common, which was under pressure -
traders who evidently believed an 2tlaCk upon
this issue would be followed by active seiliHs
in all parts Of the list The character Of sup
mort in Steel common and the large purchases
in Reading and Union Pacific impaired no"
ever an element of strength TO the speculation
that attracted covering by the shorts III an
the leading shares including the copper ana
smelling stocks buying Of which was lnhu-
enced to a certain extent by the oulilsh OPINION
of well known copper trade auIhorlIN re
garding the future Of the copper ana sfhei.i'ls
industry The short interest appeared surprised
al the ease with which prices advanced and
in the last hour It made haste to get Out oI
its contracts especially in Steel common "hlch
crossed 20, against low quotation at the open
ing of 49, The final operations showed orderly
strength and suggested that the buying on
Fridays decline came from good sources. Bank
statement figures both in the actual and aver
age statements reflected in a large expansion
in loans the weeks increased activity on the
Stock Exchange. average loans rising $10920.-
100 and actual loans as Of Friday night $500
400. In the average statement cash decreased
S151. 400. while in the exhibit of actual con-
ditions there was a loss in this item of more
than S5.000000. with falling off in reserve
of S6O60625, against an average decline of
81 193 $50 Reserve above legal requirements
now stands at S139S5,S25 compared with $40,
$40 300 a year ago and SIC a 30 in 1907.
State banks and trust companies not reporting
to the Clearing House showed increase in
loans Of more than S5,000o0o, a small increase
in cash, gain in deposits Of more than Sl9-
O00rt0 and increase in reserve of S9S2,3o
The volume of payments through clearing
houses shows noteworthy gains for the first
| quarter OF the year. for the month Of March
and for the week ended Friday. IN the last
| week clearings at all cities presented gain
| of more than 80 per cent compared with the
| corresponding period year ago. while for the
month Of March there was increase Of 30
| per cent March, 1905, with the heaviest
| improvement at the Western and Central West
ern cities. where general business activity is
greater than it is in the East. New York bank
exchanges in the week just closed, showing
gain Of more than 40 per cent, we're helped
/ by the expansion in speculative transactions in
/ Wall Street. but the exhibit, nevertheless, was
extremely encouraging from the business point
/ Of view while the same thing may be said
| of the returns at all cities, which though pre-
/ senting smaller results than in the prosperous
| periods of 1906 indicate that the time Of acute
| depression in our industries has passed and
/ that era of recuperation and progress has
| developed. In addition the evidence Of
better business times in this country, fur
/ nished by bank clearngs, further reason for n
! couragement may De found in railroad earnings
and in building operations. Gross earnings in
! all parts of the country are picking up rapidly,
| and the outlook Is promising enough TO induce
! heavier expenditures by the railroads upon
| their properties and preparations for additional
| capital financing In the course Of the year. The
uncertainty over steel trade conditions restricts
| the demand from the railroads for equip
ment and rails, but It will not be long before
| improvement will be reported in this quarter.
While the railroads holding off in the hope
| of securing a better price for rails, the steel
companies show disposition to reduce quota
tions. Notwithstanding the price-cutting OF,
other steel products, and it IS quite probable
the transportation companies will be compelled
TO place their orders the old basis of SIS
a ton. The demand for structural steel shows
some Improvement, but in most departments OF
ing. no doubt, for still lower price levels.
The steel companies are making no profits
on the current basis and the independents are
in a far from enviable position. The United
States Steel Corporation is working at between
% and 62 per cent of its capacity, according
TO trade estimates, but at prevailing prices it
is not earning the dividend either the COM
mon preferred stock. 1t is not thought likely
! that the directors of the concern will pass the
next dividend on the common, but IL is consid-
cred likely that at the August meeting such ac-
tion Will be taken, unless there should be in the
mean time a marked revival in the iron and
steel industry, with prices a better level
/ PHILADELPHIA STOCKS.
Furnished By Charles d. Barney Co. Broad
New York and No. 10 South &th st. Philadelphia)