New-York tribune., 1909-07-16
FINANCIAL MARKETS
HIGH Z. S. STEEL RECORD.
Speculative Buying Hearier- Money
Rates Unchanged.

Transactions in stocks we're heavier IN volume
than recorded in the preceding days Of the week
on we'll sustained upward movement Of prices
that attracted an increased commission mouse
demand and afforded further opportunities Tor
the realization of profits by interests who believe
the high grade issues should be sold on all ad-
vances The market has been waiting for some
new buIlish influence. and it found 1t yesterday
in the announcement of higher quotations Tor
finished steel products Of the independent manu-
facturers which more than offset a market
factor some unfsvora Bile reports from the agri-
cultural section Of the country United States
Steel common rose to q new high record, ana the
preferred moved up in sympathy while there
was q better speculative demand for Colorado
Fuel and Iron and Republic Iron and Steel, with
small purchases Of Bethlehem Steel also South
ern Iron and Steel on the curb The last named
stock represents a reorganized property that has
an active management behind it and the oppor-
tunity to develop into dividend paying concern
The standard shares were strong features; Anal
ganated Copper advanced on covering by the
shorts, also Reading. while throughout the list
the bear element showed the sort Of caution that
always is inspired by the presence in the market
Of aggressive bull manipulators who have un-
limited capital resources at their command. It
may be well TO note, however, that the latter
interests are manipulating to get out Of the
market at higher prices before their access to
bank holdings will be made difficult by rise in
money rates. The usual number of rumors caicu-
lated 70 create outside buying did service in the
day, including of a distribution to Union
Pacific common and preferred stock holders from
the proceeds Of the recent sale by the company
of the Southern Pacific convertible bonds. This
and other attractive products from the rumor
mill encoura ged little bulls to enthusiastic
The market is honeycombed with golden prom
ises, which would appear aluring If quotations
were at lower level. Trading was dull in the
afternoon, but prices closed at or near the best
Of the day
The advance in prices by independent steel
manufacturers WILL it is understood, be followed
by similar action by the United States Steel
Corporation, and in local steel circles it is be
lieved that by the end Of the year quotations for
finished products Will be back to the schedules
prevailing before the open market was declared
last February. The Carnegie company is refus-
ing contracts for new business beyond October l.
its attitude apparently foreshadOwing general
marking Up of prices at that time. while senti-
ment among the companies not affiliated with
the United States Steel Corporation suggests
the probability Of further advances by these
concerns in the course Of the next few months,
owing to the fact that the heavy demand that
has developed for steel eliminates price com
petition as a factor in the situation. In taking
the lead in the matter of price advances the
independents are following lines that the
natural outcome of the recent period of extremely
low quotations, when the outside manufacturers
were the heaviest sufferers, owing to the ad-
vantage held by the United States Steel Cor
poration in lower costs Of production. Earnings
of the steel companies for the year will he
much larger than predicted in the spring, and
though prices are still relatively low and the
activity Of the last few weeks has been on a
quotation basis that does not mean large profits.
the results for 1909 should be we'll in excess
of dividend requirements and insure a better
dividend return on United States Steel common,
the market value of which, however already has
discounted an advance in the rate. In some
quarters of the Street it is thought that at the
next dividend meeting the stock will be placed
upon per cent basis, and the departure of M.
Morgan from Europe for this country is used
to strengthen this theory. II is not unlikely
that the net earnings of the Steel Corporation
in the current quarter will reach S35 100000 and
IN the last quarter Of the year S38,000o 900, which
would make a total for 1909 of s126.Oo0,o0O and
q surplus after per cent the preferred and
per cent on the common OF s4o.000,00o
So far in the current week gold coin to the
amount of se,000.000 has been engaged for ship
ment to Argentina bringing the total since
January to 100000. and TO all countries in
the same time, s70,8oo.0o0. Shipments OF the
metal from here to Buenos Ayres represent the
payment of European debts through the medium
Of the local exchange market. and the extent of
the movement. which is far larger than in any
preceding year. reflects the unfavorable posi-
ton OF exchange market in the last six
months and the advantage taken of the situa-
ton by London to lquidate its obligations ar
the expense Of our gold holdings. Direct ship
ments Of gold are being made from London to
South America: also 10 the Continent The
of money and discounts at the British
capital encourages the transfer of the South
African gold offerings in the open London mar
ket to Continental centres and in view of The
record breaking proportion Of reserve to liability