New-York tribune., 1909-02-22
FINANCIAL MARKETS
STOCK VALUES LOWER.
Prices Too High to Attract BUYERS
Money Easy, Though Higher
Quotations Not Unlikely.

The current stock market is without the SUP eup-
mort Of public buying and though prices recently
have been adjusted TO a lower level. there Is no
indication of the development IN the lnlrneolate
future of an aggressive outside demand 1or TS14
way and industrial shares. Nor Is there any
indication that the chief wan Sueet @ lnIei 20
are making plans for bull campaign from tns
DreyatIiug range of values. Prices are sun 700
high to attract active speculative Duylng' Pun
chases at the moment being connned IN eIea'
mart to the covering Of short contracts anu tuEHS
on the long side when quotations decline on
forced Iiouidation and bear pressure. thus fur-
nistipg an opportunity for trained dealers 10
take advantage Of natural quick reactions from
the low figures. In last weeks market the gen
eraI trend was in the direction OF cheaper
values, though in Mondays transactions au-
vances were brought about on traders opera
tions based on the upstate Public Service Coih-
missions decision granting permission 10 'L4o
Erie to issue S30,000,000 collateral trust ooaoS'
The improyement on that day failed TO en-
courage any response from commission houses
and the professional element soon returned u
the short side Of the market with greater SUI
cess accompanying its movements than N t aLs
week Of the present year. the Volunle "a 80 -
ness increased at the expense OF values, willie
Increased dealings were followed by a tallnS Oh
In transactions in the bond department. VIM
since January l, has supplied the 0nly So
activity in the Wall Street markets Inc P0'
sistent pressure on stocks brought out a co"-
sidarabIa amount OF genuine liquidation, espe-
cialIy In the Hartman shares and the netd4
issues the latter being adversely eIe~cteu ~ "
the iIrfavorabIe conditions in the steer Alu COP
rsr industrial while the Hartman stocAs Ldu
20 bear the burden Of e large amount OF selilnS
based on r11mors regarding the condition OF AII-
Farrimans health Wall Street mas Ihe 1lh
nression that Mr Hartman is far from "e4i' anu
in view of the position he occupies IN the Wor1o
of money and business such an idea- accoEons
20 the Street view is sufficient reason Tor spec
uIative bearishness on the general railroad hsL
STOCKS have been ruling at high level Tor
many months. Their prices nave more Chdh ~
mes s1red the Improvement that has taken place
in the co11ntrvs financial and business situatlon
since the end Of the panic period, and accorolAs
20 many conservative observers current quota
tions fully discount any improvement that may
he recorded In the course OF the next feW
months No efforts have been made by the
substantial market interests who were the chlef
factors behind the advance IN 1908 20 carry the
general market to a higher range IN recent
weeks and the fact that most of these interests
are now out Of town and have left behind them
no instructions TO their leutenents TO operate
in their behalf for market betterment encour-
ages the ordinary professional element 10 deal
on the short side OF speculation. which at pres
ent appears to offer the line OF least resistance
There Is nothing in the outlook that warrants
the sale of investment holdings, while on de-
clines good stocks may be bought for permanent
income account. For the purely speculative
trader. however, who buys borrowed money
.
lust now, If not ample reason for staying out or
the market entirely. Money is cheap at the
moment, but there is no surety that easy rates
for loans will prevail for an extended peTloo'
Moreover there are various factors OF uncer-
taintv In the situation that suggest the wisdom
Of extreme caution at this 1uncture IN making
new commitments on marginal operations Inc
bear element IS stronger than II has peen III
many months. and it is not unlikely 1t VIII take
advantage of every adverse feature to forward
its interests on the short side Of the market
Business Improvement is making progress but
It has failed to move on lines hoped Tor a 1ew
months ago. and there appears little chance OF
euv great progress until the uncertainty over
the character of the forthcoming changes in the
tariff has been eliminated The future of the
money market is not at all clear. and the posi-
ton OF the federal Treasury Is far from reassur
ing. New securities are being put out AZ rate
that promises TO bring about congestion, espe-
ciaIly as already the publc's power Of ebsorp-
tion is being severely tested, and the enect OF
overproduction of the securities mills soon may
be as pronounced on the financial markets as the
overprOduction in iron and copper Is upon the
metal trades.
In stating facts that have direct bearing
upon the course Of speculation and prices the
impression should not be formed that funda-
mental conditions are weak or that this country
viii not continue to move forward There are
MANY factors affecting speculation that have no
place in a discussion regarding the future Of our
industries and no connection with the permanent
value of investments, but as the wall Street
markets are so intimately involved in specu-
iative transactions, in which outsiders take part
without any particular knowledge OF the condi-
tions governing the course of values no damage
may be done in cautioning marginal traders in
stocks against dealing on small bank accounts
in the expectation that extended bull operations
will develop from the existing level Of quota
tons The decline last week makes the high
grade shares more attractive as investments
based on income yield. and at their current range
such issues Union Pacific, Southern Pacific,
St Paul, Northern Pacific, Atchison preferred,
Baltimore & Ohio New York Central Pennsyl-
vania Reading first preferred. United States
Steel preferred, United States Rubber preferred,
American Locomotive preferred and Denver &
Rio Grande preferred ought to appeal 10 people,
who have idle money seeking safe placement.
Based on last weeks downward movement, which
was accompanied by an enlargement of the short
interest this weeks market at the start, at least
may react in favor Of the advocates OF higher
prices, but unless active outside demand
should develop. backed by aggressive operations
by the chief financial interests, passing gains
only appear certain. Prices in all lines are high
and a general readjustment to a lower level
would serve TO stimulate buying demand that
would have a most favorable effect upon all
markets. Copper has been reduced and steel is
following. but economists insist that long
OF prices for everything will be upward Tenn
porariy. however, prices may be lowered with
the effect Of encouraging a demand that will
bring about a gradual return of better quota
tions on a growing volume Of business that will
take little note of enhancing costs.
There was material change in money rates
in the local market in the week. Monetary con-