New-York tribune., 1909-09-21
FINANCIAL MARKETS
PUBLIC BUYS STOCKS.
u. S. Steel at Ne5o High Record
Sterling Exchange Strong.

Stocks were strong throughout the day on an
active volume Of business that included fair
amount of purchases for public account. The
strength in last weeks operations and the alb
sence of bear aggressiveness have attracted n
good sized outside following in the market. not
withstanding the fact that the average price Of
the leading issues. excluding Union Pacific. Is
about at the best of the year. in many cases at
the highest ever recorded and at a level that as
a rule fully measures the intrinsic value OF in
vestments. Price however. apparently is not
consideration with public buyers Just long
Wall Street is bullish and convince its
followers that this is the time to take securities
on borrowed money in spite Of the probability
Of a materially higher range In the loan market.
The Hartman shares leaders in point OF
strength in the larger part of the day and in
spite Of heavy profit taking sales in the after
noon their prices showed substantial improve
ment at the close. while in the general list the
final level was above that I'm Saturdays market.
St. Paul. Third Avenue and Consolidated Gas
being the only prominent heavy features. United
States Steel common again active. reach
ing a new high record while the preferred
showed more life than recently reported and sold
within fraction of the best price ever recorded.
All the metal stocks were strong. Republic Iron
and Steel, Colorado Fuel and Iron Bethlehem
Steel. Amalgamated Copper and Anaconda being
in active demand a fair class Of speculative
buying Pacific Mail helped by a report
that while the Pacific Coast President Taft
would advocate ship subsidy, and marked
strength in Vulcan DEFINING shares apparent
Iy was based upon variety of favorable rumors
affecting the future of the property. These re-
ports extremely encouraging and so
manifestly inspired by stock market manipula
tors that the management Of the company felt
compelled 10 issue a statement denying the pos
siblity of any melon cutting. The market
closed active and firm.
People who look below the surface OF the
speculative bull gossip in Wall Street in
local exchange and money market conditions
reason for conservatism in securities operations,
but TO the ordinary observer with short men,
ory the situation contains nothing that warrants
a quieting down I'm stock speculation. II is
pointed out by the latter that stocks in
strong hands and that bank statement figures
warrant the theory that there will be sub
stantial advance in loan quotations this autumn.
especially the interior banks are I'm a sound
position Stocks are in strong hands but IL
need not be assumed that present holders do not
3 intend TO realize their profits Indeed strong
interests selling stocks on every advance.
and, while the bear element IS making head
way against the market. technical conditions are
growing weaker with the tendency favoring the
development of a period when the bear will
come into his without any adverse change
in the factors governing the intrinsic worth Of
securities. The interior banks. IL is true, are in
a strong position but they will be compelled.
nevertheless TO draw on their balances at New
York to meet home requirements In the course
of the next few months despite the talk in some
quarters that crop and business movements will
be financed without assistance from this centre.
II should be borne in mind that New York bank
reserves are near the vanishing point. far as
the % per cent limit provided by law is con-
cerned while the fact that are heavily I'm
debt 20 Europe at time when our imports are
exceeding exports also should be taken into
consideration in figuring upon the future of the
money market. There is big short interest in
the exchange market. and sterling rates show
abnormal strength for this period of the year.
though not unexpected in view OF our heavy i'm
ports OF merchandise and light exports. High
money rates may attract some gold from Europe.
hut II will require an enormous outward move
ment OF grain, cotton and general merchandise
10 make gold imports possible on trade account.
The Imperial Bank of Germany advanced it's
discount rate yesterday TO per cent. The
period of cheap money in the markets of the
world apparently is at end.