New-York tribune., 1909-12-24
MARKET
READING SHARES UP.
Cdu Money Firm and Sterling
Rates 4gGin Decline.

Trading IN the general stock market
was light In volume on a movement of
prices that showed great irregularity.
with more net losses than gains al the
close. few issues supplied the chief
parr % the total business notably the
Reading shares. Rock Island. United
States Steel and Pennsylvania. in which
the operations represented little beyond
the transactions Of the professional ele-
ment. though IN Reading second pre-
ferred. which enjoyed a sensational ad-
vance. dealings were reported for outside
account including active purchases by
Philadelphia interests. A bull pool has
been operating in this issue IN recent
davs. and from the movement Of the
price Yesterday reason was presented for
the theory that insiders We're taking
profts The advance was accompanied
by a report, subsequently denied in
Philadelphia. that the second preferred
would he converted into common. an op-
GRAFTON that would incur an obligation -
. per cent a year on S2l .0oOO OOO new
common. owing 10 the recent advance in
The dividend on the common 10 a & per
cent basis and 20 the difference in price
and amount of stock outstanding ~ the
common and second preferred.
Suength in Rock Island vas helped by
The statement that important foreign in
terests would become financially identi-
fed with the property. and the fact that
i~1
heavy buyer Of Rock Island securities
naturally strengthened the impression
that Europe was most favorably dis
posed toward solid American railway
companies. Increased significance was
attached 10 the rise in Rock Island by
the strength in the per cent bonds
secured by deposit - the stock ~ the
old Chicago. Rock Island & Pacific.
Wabash preferred vas bought bv
traders. likewise Pennsylvania. Buying
of Virginia Carolina Chemical appeared
10 be based on the idea Of a per cent
basis for the stock Al the next dividend
period. While there we're gains IN the
stocks named. the general market was
heavy N the best part of the day. espe-
ciallv IN Steel common. AmalCamated
Copper. Colorado Fuel and Iron and Con-
solidated Gas. Total sales were heavier
than on the preceding day. but the In
crease IN activity was confined 20 d few
issues
End ~ tie year demands for money
were responsible for a stiff level OF rates
Tor call funds. but the inactivity % stock
trading prevented undue strength IN the
market and suggested the improbability
Of disturbance in the coming week. In
terror exchange is beginning 20 move in
favor of this city. and n is generally be-
lieved IN financial quarters that a sub
stsntial amount Of out-of-toWn money
viii come 20 this centre IN January 70
take advantage of the attractive oppor-
tunities that viii be presented for loan
operations. Money rates promise 20 re-
main ~ a firm level and this situation
VIII be accentuated IN the event of gov
eminent financing. which now appears
probable. owing 20 the heavy drain upon
federal cash from Panama Canal re-
quinements which is not offset by gov
eminent revenues. though the latter are
improving as a result Of increasing i'm
ports Of dutiable merchandise Wall
Street h. prepared 10 handle an issue u
Treasury short term certificates OF in
debtedness sgainst which circulation
may be- taken out. and owing 10 the in
equality OF taxation on the circulation
secured by Panama - and IS II is be-
lieKed that the Secretary ~ the Treasury
viii offer the . per cent certificates
rather than Panama bonds. The Bank
of England made no change in its min
imum rate of discount yesterday IN the
fac of decline 81 10 per cent IN its
proportion of reserve 90 liability. which
nov stands al "A ~. compared with 3s.3O
a year ago and an eight-year average Of
3sOs per cent The banks reserve al
Ways declines In the last tao weeks of
the year and generally advances IN Jan
uar.. Sterling exchange was weak.