New-York tribune., 1909-09-17
FINANCIAL MARKETS
L. s. STEEL'S NEU1 RECORD
MOst Stocks Strong and 1ctiTc-
Banks Losing Cash.


higher stock market prices was made in yester-
days operations the advance attracting in
creased orders from commission houses that
have extensive wire service throughout the
country. Though realizing was heavy in vol
ume, especially in the first hour of business. quo
tatiOns showed remarkable power Of resist
ance. with the only indication Of weakness in
Reading which sold fractiOnally under its clos
ing OF the preceding day. Speculative interest
was centred to large extent in the Hartman
shares. New York Central and United States
Steel, the last named again making new high
record at a gain of more than points on trans
actions that apparently represented activity on
the part of the so-Called insiders and buying
from a large Wall Street following that believes
the stock will be placed per cent basis
at the next dividend period. There is good rea
TO believe that the directors will advance
the rate at their October meeting. while there Is
40 reason 20 suppose that the issue will not he
advanced 10 the per cent class in 1910. In
view of the probability Of higher dividend the
price at which the stock is selling is not dear,
and il is not unlikely that before the end of the
year IL will be in :hc neighborh0Od of par. The
price Of Steel common has more than doubled
since last February. hut i'm the same time there
has been marked revival I'm the iron and steel
industry with heavy increase in earnings, which
promise 10 exceed before long all past records,
the outlook for the United States Steel Cor
poration for the current quarter indicating net
income of more than S36 900. .000 against little
more than s29,000,000 in the quarter ended June
-" ne SlOtk however. appears 10 DC dnNdnC-
ing too fast for the best interests of tho people
who buy il small margins; and the same
thing may be said of the larger number IF Sc
cuTtieS. The railway equipment shares we're
in fair demand and various ypccialtes moved
toward higher level Stocks ended under the
hest with Steel up -. and Union Pacific 2is.
The fact that stocks advancing under the
influence Of operations by substantial speculs-
tive interests encourages the expectation in com
mission houses Of a material increase in the
0f he rf 4La
public. and II Is not unlikely that the outsiders
will disregard tho hardening tendency in the
money market and the high level at which prices
in general are quoted in their quest for profits
that to them appear assured II is pointed ont
by the advocates Of bull activity that at times
in the past. NOTABLY in 1905, advancing values
have accompanied rising loan quotations. but
the fact that such movements have ended in col
lapse apparently is forgotten. Conditions
DERIVING the actual worth Of securities arc
strong and the banking and railroad interests
that practically control the transportation and
steel making business I'm this country are work
ing I'm harmony; yet in view Of the relatively
small amount of money I'm the city banks, the
heavy demand for funds for mercantile and crop
purposes and the advanced range at which most
securities are selling active speculation az this
period does not seem consistent with common
sense. Local money rates were firm yesterday.
with every indication of the development Of
much dearer quotations both for call and time
accommodation. The demand from the West
and South was active. while the home inquiry
from mercantile interests showed Improvement.
with the general movement i'm all departments
OF the money market suggesting something in
the nature Of a squeeze i'm the future in
the event of reckless bull speculation on the
Stock Exchange According TO 1.-The statement
OF the New York banks to the Controller OF the
Currency showing conditions of September J,
there has been decrease in cash holdings since
the end of June of $2O.54s.e53 and a decrease of
sS5,31A,S45 from this time a year ago. to S302,-
1S4.S5s. against loans of $925653. .623. compared
with $905653.475 in 1908 From the known
movement OF currency in the present week to-
days preliminary statement of cash changes will
show further large loss I'm lawful money and
unless there has been heavy contraction in
loans to- o-morrOw's Clearing House exhibit doubt
less will present deficit ia tho reserve or
something very near IL.
Gable dispatches foreshadow an advance i'm the
discount rate Of the Imperial Bank OF Germany
and the fact that quite often in the past the
first indication OF higher money rates throughout
the world has come from Berlin should be of es
peclal interest to local operators in stocks who
are laughing al the idea or any important rise
IN loan quotations here. There was severe
stringency I'm money in the fall OF 1905 preceded
by an advance in the German bank rate from 2
TO per cent under conditions quite similar 10
those now prevailing, and Il was i'm the same
year that the surplus of the New York bank.