New-York tribune., 1909-06-15
FINANCIAL AFFAIRS
STOCKS REACT At CLOSE.
Most Issues Strong in Early Deal
irrs-Foreign Money off cred Here.

Transactions in stocks were moderately heaNE,
,-i+I, the most active dealings in United states
Steel common, which made new record Il
6q7. the operations in the issue includlng laI
purchases for foreign account presu1Aaoiy Iol
london option dealers, who were anxious 10 pro-
+ect themselves against calls sold TO American
operators The upward movement was accom-
panied by rumoTs OF coming developrneh's' ou'-
side OF trade conditions, OF the utmost I'M
portance TO the United States steel CorForallol
hut apparently these reports were based on the
desire of the bull element in the stock 10 bring
about better prices rather than on any kno"l-
edge of future events. Though the buyers or
the steel shares for investment account need no
stronger argument than the strength Of the
covery under way in the industry and the proved
ability of the corporation to weather acute
periods OF business depression without suspend
ing the per cent dividend on the common and
the per cent on the preferred. IL should be
borne in mind that Steel common has fully dis
counted the Improvement in the trade and 10
q great extent the probability Of an increase in
the dividend to a 4 per cent bs sis. The
general market was strong in the best part Of
the day, Union Pacific. Reading and Wabash
preferred being features. the last named selling
at a new high level, while the refundng bonds
Of the company showed unmistak8ble evidence
Of absorption by substantial interests the two
movements attracting further attention to the
persistent reports that the Wabash property
viii pass TO new control. After a period Of
widespread strength in the early afternoon the
general market reacted. closing irregular, with
advances as a rule confined to fractions the
FloenS rise In Wabash preferred inducing sell
ing by conservative interests, who are not in
Id'oI OF speculation Of this character on the
theory that It viii undermine the bull posjtion
Traders bought st. Paul on the idea that tbe
bankers VINO will finance the company's bond
-s9us VIII heIp along bull movement in the
SOCK IN order to make more favorable mar
ket for the new debentures Call money con
nnued TO rule at from ~ to 2 Der cent while
niue activity was reported in the time denart
ment Sterling exchange was firm, at mn
ILaiIeeu quotations. Features Of the day of
interest 10 the money market were 2 franef.r
py the Sub-Treasury Of $1,000 600 to San Fran
CISCO ana renewed offerings Of foreign nona,,
here '' 1911 iloiley
Advice given by many commission bo,,sos
AGAINST the extension OF bull commitments IN
the stock market at this time o,,,Inr - ~ -
So So" ADVANCE that has taken place in the ma
Jority OF securities. finds an encouraq aq5ne, re
hpohse from people who ternper their er+t,,,
i 'I,i win conservative judgment but the usual
homber OF top buyers" who never bave tha
diose 10 absorb securities when prices are at
attractive levels are deaf to the suggestion tbat
%r @ q general proposition quotations have reached
I0 6iIse from which sharp reactions are likely
10 develop as a consequence of the v,Iiugnesa
u strong speculative interests to satisfy the
aiiu loF shares from public traders who
operate on the ordinary Wall Street margin
-Nost STOCKS have discounted in their market
value the improvement that has talon r1aCo =.
'Ie couhtrys Industries and that which NAV he
eALected IN the rest Of the year while there are
q go lev ISSUES IN which further Improvement i.
JIe'iIeo. II Is not improbable that tho latter
ciaSs VIII nave its inning before the huU u,a,le
runs It's course, but unfortunately the nuhIic is
connning its attention to the fancy priced sharae
on the Old theory that the only stock IN mr.
chase is mat which exhibits great speculative
actlVlty In the neighborhood of an inflated level
leaVlng the cheaper issue to the experienced
operators who take il up while selling the high
eIaoe security that shows handsome profits In
the iast fortnight number of stocks in the
IeiatVeIy cneap group have been bought and
manipulated for higher quotations and n is
quCe evident that transactions of this character
VIII continue in the confident and well founded
DeieI that a public market can be secured for
thern In this class may be mentioned American
Beet Sugar In which total sales last week
amounted to more than $4,000 shares; American
Can, American Cotton OIL, American Lnseed,
american Locomotive, American Car and Foun-
dry, Bethlehem Steel, Colorado Fuel and Iron.
Corn Products Ontario & Western Republic
Iron and Steel United States Rubber virginia
Carolina Chemical. Vulcan Detinnins and Wa
bash preferred. Outside of Ontario & Western
the future investment value of the issues named
is an indeterminate quantity, bat speculative
considerations rather than investment are the
moving influence at the moment.
In the list just cited the greater number of
securities represent industrial properties the
ent prices Of attractive investment or specula-
tive purchases though commission house clients
now coming into the market quite willing to