New-York tribune., 1909-04-13
FINANCIAL AFFAIRS
STOCKS SHOW STRENGTH
Activity in Lou Priced Issues
Money and Sterling Unchanged.

Stock market trading was active throughout
the day on q movement Of values that sho"eu
for the greater number of issues net gains III
spite Of heavy realizing sales in all parts OF
the list While the shares which showed es-
r,eciaI strength in last weeks trading continued
their upward course. the buying movement eA-
tended to issues which were comparatively
neglected in recent markets. as. for instance.
the Wabash stocks which we're taken by sooo
class of buyers to the accompaniment OF re
vivaI Of the rumor that the Wabash company
eventually would pass to the control OF the
IackaHanna. If the latter road wishes 10 eX-
tend its line west Of Buffalo the wabash Wouiu
fit in we'll with such operation. but from
what NAV be gathered from conservative fnan-
claI interests who are we'll posted on railway
affairs the chief owners of the Lackawanna are
who'll; satisfied with the roads present mileage
The Lackavanna practically has been reUullI
in recent years. and both physically and hnan-
cially it is about near perfect as any rail-
road could possibly be. Its stockholders re-
ceive 20 per cent q year. though 1t Is earning
twice as much. and it Is a question II under
the conditions affecting the property expansion
of its lines into middle Western territory would
he of anv material benefit TO the company
Traders found IN the strength Of the so-called
Morgan stocks reason for covering shorts on
the theory that advances in such stocks as Eric,
General Electric. United States Steel and Inter
national Harvester reflected a decided hHliish
attitude the part of the most prominent
financial interests
manipulators have the faculty AT times of max
ing the public believe activity in shares of com
raniee with which the Morgan Standard oil
name is identified represents actual buving bv
the leading grouU Of finanriers. The latter. II
NAV he we'll to bear in mind. do not load M
with stocks at high prices. though they may
have plenty to sell when manipulation has
r,Iaced securities uuon an inflated basis. The
street found an EXPLANATION for every move
mont IN the dav. and. whether good or bad. II
satisfied the commission houso following. that
eoc-orIv BOUGHT on borrowed mone, stocks
which II could not he induced to touch few
months ago. The general market closed strong.
Notwithstanding the fact that the local hanks
suffered 2 consdera ble loss last week in reserve
ahova legal requirements. owing 70 = heavy eX-
mansion IN loans representing tho activity
the Stock Exchange. there was no change in
money rates YESTERDAY in the direction Of
stiffer level and no indications Of advance
IN the immediate future Funds inv ested In
stocks return better yield than they would
if employed in the money market but IT IS
conceivable that with a constant widening in
speculative operations frmer loan quotations
will be brought about, while 1t is quite evident
that the current advance in stocks on wholly in
fationary conditions cannot run on indefinitely.
Under our present unscientifc currency system
paper currency is increasing at a time when
the general situation would be helped by con-
traction. and just long we are nestered
by a redundancy of paper money gold Will have
tendency TO leave the country, as IL mas
been doing since the passing of the panic Of
1907 At that time a large amount OF gold was
imported but practically all of it has been re-
turned with the indications pointing toward
further efTiux OF the metal in the autumn unless
the crops are unusually heavy, with large sup
plies for export, as the outlook faVors rapidly
INCREASING merchandise import movement in the
balance of the year. Imports are growing and
following the enactment of n new tarln law the
movement viii be further stimulated, adding 10
government revenue but encouraging an out
ward flow Of gold unless foreigners become large
l,,yers OF our securities and we have big sur
rius of cotton and food products 10 send TO
Europe. The prospects for a heavy winter
wheat harvest are not promising at the moment,
as condition and acreage both are lower than
reported al this time a year ago. and il is to
ne hoped therefore, that ample yields VIII be
returned from the spring wheat and corn fields,
especiaIly as winter wheat usually is estimated
at :bout two thirds of the entire wheat yield.
The rigid bond d-secured currency is tending to
rroduce a period of imitation, and if the govern
men. makes another issue OF Panama bonds the
opportunity of increasing circulation again will
be presented and advantage doubtless will be
taken of Il In spite of improving federal rev
enues in recent weeks, as reflected in an excess
of government receipts over expenditures far
In the current month Of more tha- $500 coo
bankers believe tnat the Secretary OF the Treas