New-York tribune., 1909-02-12
FINANCIAL AFFAIRS
STOCK PRICES ADVANCE.
CoUa1ng of Shorts Helps Tot~es-
Banks Lose Cash.

The failure OF recent efforts to bring about
materially lower quotations for stocks and the
overextensicn Of the short interest have been
responsible for an advancing tendency in the
last three days. rather than any outside demand
or aggressive operations for higher values by
the leading Wall Street interests. In yesterdays
market strength marked the course of prices
in most parts Of the list but the movement
was not accompanied by increase in the deal
ings which amounted to only 39S,993 shares, of
which the greater part was supplied by the
metal issues the Hartman stocks, Chesapeake
& Ohio Reading and Peoples Gas. The better
class Of stocks were in active demand from the
shorts the buying attracting moderate pur-
chases for long account, especially in Union
Pacific St. Paul and American Sugar Refining.
which enjoyed better market than in several
weeks though the total Of transactions not
large. On modest purchases Atlantic Coast Line
and Louisville & Nashville were exceptionally
strong, and in the absence Of any explanation
for the movement beyond the settlement of bear
contracts the Street developed the weird Idea
that the Atlantic Coast Line. which controls the
Louisville & Nashville soon would become the
owner Of the Chesapeake & Ohio. In the last
few weeks rumors of railway deals have failed
to advance prices, and II is possible that, based
on yesterdays rise, renewed efforts to establish
quotations on a higher plane win be made
through the medium of foolish railway stories.
The general market closed dull and under the
best prices Of the day. In the bond department
an active volume Of business was reported, with
funding IS and the Wabash -Pittsburg Terminal
issues Allis-C Chalmers 5s and Union Pacific con-
vertible as There have been heavy sales OF
bonds by underwriters in the last week TO bond
houses and the latter have disposed of large
amounts to the public.
According to the known movement Of money
in the week the local banks have increased their
cash holdings since last Friday upward OF
$4,000 O00 gaining from the interior and on new
gold production but losing their operations
Sub -rHrna sir a 8
return OF government deposits. They also lost
on gold shipments to Argentina. AS prelim-
mary estimates quite often are not in line with
actual conditions Is reflected in the bank state
ment II is not wise TO make a prediction Of the
probable showing Of the Clearing House institu-
tions In their weekly statement tomorrow, but
from the course OF the money market in the last
few Gays no extensive decline in reserves is in
dicated as rates for loans, though firmer than
they were two weeks ago, still ruling at an
extremely easy level extremely inactive
demand. Sterling exchange was stronger yes
terday a consequence Of more active in
ouiry for remittance incident 10 the end Of the
week but conditions affecting the foreign e1-
change market did not foreshadow the develop
rnent Of an upward movement of rates, espe-
ciaIly az the weekly return of the Bank Of Eng
land made showing that promised moderate
ly long period Of relatively cheap money at the
British capital An encouraging gain was re-
ported in the institutions holdings of gold while
there was n increase in the percentage of re-
serve 10 liability 70 q point only tri1e under
the average for this period in the last eight
years, and well above the level reported last
week.
The strength in the local exchange market
and the scarcity OF commercial bills in January
that brought this market TO the verge Of direct
gold shipments to London are explained to
great extent by the statement of the country's
exports of domestic products in that month the
figures Of which were received from Washing
ton yesterday. Shipments of cotton were in
value S24, f69. 900 less than in the same month
in the preceding year. while the falling off in
exports of breadstuffs amounted in value TO
s11.565 GOO, with a total decrease in cotton
breadstuffs cattle. meat and dairy products of
s3e. .37s 400 mineral oils furnishing the only item
in which q gain reported. These figures
compare with period last year when our prod
ucts were being rushed forward a result OF
panic conditions here, but even IN comparison
with the normal month of January 1907, tho
figures for January this year show a reduction
of more than $21, SOC. 600.