New-York tribune., 1909-03-08
FINANCIAL MARKETS
Prices Too High to attract Public
BuWng-Monetary Conditions.

Stock market trading in the greater part OF
the last week was light in volume on move
rnent Of values that showed irregularlty without
important changes at the close the majority OF
issues ending at small net gains. The covering
movement that developed after the sharp break
in the preceding week came to an end IN Moh-
day's operations and in the absence Of an active
outside demand for securities the professional
element as a rule worked for lower quotations.
though exercising considerable caution IN us
transactions on the short side of speculation
owing no doubt to the idea that substantial
Wall Street interests might at any time lnsu-
tute an aggressive campaign for higher prices
There was however, no evidence that the peopIe
who made stock market history in 1sOS Dy carry
ing values from, 20 to so points above the pahfc
level intended TO resume operations for the oul
account though they did show a disposition TO
discourage traders from making extensive com
mitments for the decline. The banking co1llnu-
nity is anxious to preserve a stable market II
realizes that In the greater number OF STOCKS
prices more than discount Improvement that
may be recorded in the general business sltud-
tion in months to come, and 1t believes that
active bull speculation at this particular tiile
notwithstanding the current case IN money
would in no way strengthen conditions govern
ing the intrinsic worth Of our securities Ana
the banking comnunity's ideas are backed py
public opinion. The public does not care TO ouy
stocks on margin at prevailing prices anu 10
unwIllingness 20 come into the market except
strictly investment aCCOult luAi4i041NN -
tive argument against the claims OF certain
people who insist that because the outlook
favors gradual Improvement IN our industries
securities values must go up II STOCKS were
selling at low prices an upward lhoNeliiei'
would be more than justified but quotations Tor
,,os+ issuas ara high and there can be found no
good reason for further material appreciation
at present II Wall Street spectators who nave
stocks for sale at higher levels can lnduce the
public TO participate in a bull movement Nalues
u hfcvIn
the moment there is absolutely no indication
that the public is interested or intends 10 become
interested in market movements. There are
however. many attractive opportunities Tor IN
vestors and current buying for outside account
is confined almost entirely to investment opera
tions.
Commission house trading in last weeks mar
l,et was not a factor in the dealings, that is, as
far as the general public was concerned Inc
hoped for Taft boom did not develop though III
all circles sentiment was optimistic over the
future of the country under continued Republ-
can Dolicies which always have worked on lines
that have brought national prosperity. Specua-
tors who made large commitments on the long
side in the expectation of a mighty ouIl move
ment following the inauguration OF the new
President found nc active market for their holu-
ings though prices rule were higher on a
most limited speculation in Fridays operations,
especially in the Hartman shares. the metal
issues Reading and some Of the so-called low
priced securities. Reading was affected to some
extent in the early part OF the week by the talk
of a hard coal strike at the expiration of the
present agreement between the operators and
the miners; also by the failure Of the Supreme
Court TO hand down decision in the commodity
clause case: but the selling on these two argu-
ments was entirely of speculative character
while the same thing may be said Of the selling
in other parts of the list And the buying also
was made up almost wholly Of professional
traders transactions. In the metal shares the
speculative buying On all recessions was better
in character than that recently noted. a con-
absorption Of AHlalganlated Copper
and United States Steel common being reported
for interests who have the resources to buy out
right and the Willingness TO hold their purchases
for an extended period. In some quarters OF the
street Il is believed that Steel common viii sell
in the 3o's before it moves 10 a materially higher
level while lower prices are predicted for Anal
gamated Copper despite the fact that its quo
tation already is about II points under the high
level for the year. recorded in January. The
metal trades continue in condition of semi
and the metal stocks are among
the few listed on the Stock Exchange that are
selling in the neighborhood of the bargain level
It will not be many months before consumers Of
steel and copper will be heavy buyers. From
all indications their requirements will be enor-
nous.
Transportation companies enjoying at
present a much larger volume of business than
at this time a year ago, and the promise OF
steady Improvement is bright enough to warrant
expenditures. which in the next few
months are likely TO show marked gains as a
consequence of growing business and the
cheaper cost of materials and supplies involved
in the maintenance and new construction ac-
count Of the railroads The large Pennsyl-
vania system. which probably handles the most
diversified traffic Of any railroad In the country,
shows in its report for January substantial ex-
pansion in gross receipts over the corresponding
period a year ago. while it reflects the COM
panys ability TO increase its operating costs and
still retain some Of the gain in gross in the net
exhibit In the last year the Pennsylvania prac-
tised severe economies, es shown in its annual
reports received last week. without affecting its
efficiency, while il earned nearly 9
per cent its large outstanding capital stock
against 1867 per cent in 1904 showing that
ought to be received with extreme satisfaction
by the holders of the company's securities and
by the public in general ii presents a refiec-
ton of business conditions that were far better
than most people hoped for in year following
one OF the greatest financial paniCs ever re-
corded in this country. In the greater number
Of cases railroads reporting for January show
gains IN gross income compared with the
CORES sponding time a year ago. and a more lib
eral tendency on the part Of the companies in
the matter Of expenditures. though the reports
do not reveal anything showing a departure
from conservative methods. Railroad managers
believe that the improvement already recorded
in actual business Will continue and reach large
in the second half OF the year, when
uncertainty over the tariff doubtless no longer
viii be factor repressing growth in general
trade and as a consequence of this expected
the chances favor increased orders
at no remote period for new rolling stock, rails
and structural materials, contracts for which in
the last twelve months have been Of the most
limited character.
slightly firmer tendency is noted in some
departments OF the local money market, but the
large offerings OF out-of-town funds and the
light demands from mercantile borrowers pre-