New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-08
FINANCIAL MARKETS
L. Il. At NEW HIGH RECORD
Bull Speculation at Boiling Point
Bank Reserves Decline.

Stock market trading In the two hours OF bust
ness at the rate rf more than q million
shares for 8 full day. transactions being well
distributed over the active list on q movement
OF prices that showed great strength until the
final operations when recessions were reported
as consequence of heavy realizing sales. New
high records made by a number OF issues
including Union Pacific. Reading and Steel COM
mon, the first named advancing TO 204@ on
transactions that were larger than in any other
stock, with the exception CT United States Steel
which sold as high VIZ. The Street has
figured out that this issue will sell at so I'm the
current week; that Union Pacific will go well
above POS; Reading above 40; ST. Paul above
l65, and that new high points will be made
throughout the market on exceedingly active
volume Of trading, especially in to-morrow's
market, fin which II is expected the influence Of
yesterdays advance will be reflected ia a sub
stantlal increase In buying orders by commits
sion houses for outside account. Wall Street
sentiment is extremely bulish, and a boiling
market is looked for. In view Of this speculative
enthusiasm careful operators no doubt will con-
vert paper profits into cash. inasmuch ex
treme bullishness generally indicates that the
larger interests distributing their surplus
stocks 10 the public o-called low price issues
are being bid up, and under cover of these trans
actions active sales are being made OF high
priced securities without affecting their quota
rions, movement quite cammon in a specula-
ton backed by millionaire traders Rock Island
and Atchison We're active features OF yesterdays
dealings; also ST. Paul, Amalga mated Copper.
Great Northern Ore certificates, Southern Pa
cifc and Northern Pacific, the last named being
helped by the excellent spring wheat prospects.
The Hin shares have been laggards In the cur
rent bull market, and IL is no: unlikely that
they will become more prominent before the in
evitable slump develops. Speculation in bonds
was active.
The prospects OF srFner ates FOR money may be
gathered from the weeks movement OF cur
rency, which shows a heavy failing OF In re-
ceipts at this centre. and corresponding gain
in shipments: also I'm the statement OF the Clear
ing House banks which shows in the average
exhibit a reelection in cash OF 3T.sss.4O0 and a
loss in the reserve above legal requirements OF
sS.3l3,S0O and in the exhibit of actual conditions
as Of Friday night loss In cash Of :7.ss7, 900
and loss in reserve Of s6,525075. Loans in
creased in the week more than SO. 100000, while
the trust companies presented a gain in the
same item Of more than $1,000. 600, against a
decline In cash OF nearly 81, 00O 900. The total
reserve above legal requirements now stands at
S25,945600, as compared with s59,224.275 at this
time a year ago and s7,7s0.55O in 1907. Total
loans Of the banks and trust companies OF this
city, which show a gain this period in 1903
OF 900, are still well under deposits and
II II were not for the active demands that soon
must be made upon this centre for money in
connection with the financing or the harvests
and general business expansion alere would be
no cause for the expectation OF materially higher
rates for loan accommodation IN the near future.
The banks do not look for stringency. II Is too
early. however TO figure on the position OF the
money market in the autumn. but from present
indications it is probable the banks and trust
companies soon viii be able 20 secure a better
price for their funds. especially IL bull specua-
tion in stocks runs riot. as il promises 20 do at
no distant period.