New-York tribune., 1909-07-29
FINANCIAL MARKETS
MOST STOCKS HIGHER.
EarIv AdUances FoHo5ced by Hea0y
CIose-Monetdry Situation.

stock market prices opened strong, and in the
first few minutes of trading the leading railway
and industrial issues made new high average
for the wear Union Pacific crossing 200 in the
course of the movement, though subsequently re
acting to a point under the closing OF the pre-
ceding day The entire list felt the effect OF
heavy realizing soon after the initial transac-
tons while throughout the rest Of the day the
volume Of selling in the larger number OF issues
was heavy enough TO bring about great lrreBu-
larity. with a declining tendency In many shareS
before the close. United States Steel common
was strong in the early operations, but reacted
under the influence of selling. based on the
theory that as the good news was out no further
reason existed for bulling the security. which al
its present price yields tTifle more tnan per
cent on the basis of a per cent annual rate.
OPINION in the Street favors the idea that al the
next dividend period the stock Will be advanced
to a per cent basis, which would make the pay
ments for 1909 equal a per cent Union Paclnc
was actively sold from 200l2 its high price, down
10 200 upward of 10000 shares changing hands
between those points. the stock, however, being
well taken and the character of the buying sug-
sesting the presence In the market Of strong
financial interests who have securities TO sell
above the prevailing level The simultaneous
strength in Reading American Telephone and
Telegraph, Rock Island and New York Central
also reflected operations FOR higher prices by
substantial spectators, who evidently are anX-
fous to take advantage of the present easy money
market to attract an active public following 10
the market. The eXpectation Of an early enact
rnent OF the tariff measure. with Its proposed
removal of the duty on hides, was responsible
for A sharp advance in Central Leather shares
while further encouraging reports from the agri-
cultural section of the country strengthened the
market for St. Paul and Chicago & Northwest
ern issues. Union Pacific convertible bonds sold
at a new high price OF ia. The general market
was dull and heavy in the last hour, though
more net gains than losses were recorded.
The most significant feature of the quarterly
report of the United States Steel Corporation is
the increase in earnings shown month by month,
the May returns presenting a gain in net Of
81 497 9s4 over April and the June figures a gain
of S1s54791 over May. Earnings in June were
larger than in any month since October, 1901
and were at the rate of about S140,OO0OOO a
year. which is not far from the best yearly record
ever made by the corporation. when its output
was sold at a higher level Of prices than that
prevailing at present. From the progress made
in the steel industry In the last three months
net earnings of between S35,000,0O0 and $4,000
600 may be conservativey figured upon for the
current quarter while il IS quite evident that the
Steel Corporation is entering a period that will
show better results than the record breaking
wear of 1907. when net earnings amounted 10
more than 160000,000 especially as the favor
sble exhibit of the last three months is based
upon an average production of less than 20 per
cent of the concerns capacity, with prices from
So to IS a under the level prevailing prior to
the establishment of the open market last Feb
rlIary The surplus for the last quarter was up
ward of $500 900 after all charges and divi-
dends including the increase in the common rate
of quarter of per cent. but even with this
comfortable balance the conservative element in
the Street indorses the action of the directors
in not advancing the dividend to a per cent
basis at this period. II is conceivable that, with
the Improvement that will develop In earnings
in the next twelve months, the common stock
eventually will be advanced to something better
than per cent while it is not unlikely that the
preferred stock as solid per cent investment
gradually will move to a higher price and become
exceedingly scarce for speculative purposes. This
issue already is widely distributed in investors
hands The demand for pig iron is increasing.
but prices advancing in manner that sug-
gests to well informed trade interests the possi
bity Of sharp reaction.
Money rates were unchanged yesterday, with
the chief demand in the time department for
long maturities. Offerings of commercial paper
somewhat heavier than recently reported.
but there is still absence of activity on the
part of mercantile borrowers that serves to main
tain rates for call loans at a level attractive TO
speculative commitments in the stock market.
Exchange at interior points. however, is begin
ming to move against this centre, and il will not
be long before the effect of an interior demand
viii be felt in the local market The details of
our foreign commerce for the last month re-
ceived yesterday, supply further explanation of
recent gold exports from this country showing
total imports of merchandise TO the value of
SI24 SOS 329, against total exports of sI174195S9
and total falling off in exports FOR the fiscal
year of 1886 430.763. against increase in i'm
ports of $117.57S.432. Exports of foodstuffs in
the year were in value more than S53 900 600
under those of the year before. Sterling ex-
change was heavy yesterday under the influence
af bv haulScrS " n evidently