New-York tribune., 1909-01-17
FINANCIAL AFFAIRS
STOCK Values UP.
Covering of Shorts Aduances Prices
Bank HOLDINGS Increase.

In the two hours of trading in yesterdays
stock market the movement of values was in
the direction of higher prices under the influence
of covering OF shorts that was encouraged 10 a
great extent by indications Of support in the
Hartman shares and in several other issues
which were taken by representative houses
The strength in the Hartman group was es-
pecialIy pronounced in the last hour. when
Union Pacific sold up more than points, the
rest of the list following the lead, the local
fractions Atchison Reading Chesapeake &
Ohio and American Smelling being features
There were outside news developments &C
counting for the general advances, the movement
being based entirely upon the somewhat over
sold condition OF speculation at time when
good class of buying entered the market The
deal by which the Minneapolis st. Paul & Sault
Ste Marie the so-called 800" line, will secure
control Of the Wisconsin Central, and the recent
passing Of the control OF the Colorado & South
ern 10 the Burlington were responslpIe TOT
rurnors regarding other low priced properties,
and were not without effect upon the prices OF
the second rate shares, while the report mat
the Hartman people would parallel the ColoTado
& Southern failed TO create more than passing
interest in the Street The market closed strong
at bout the best figures of the day. The weekly
Clearing House statement OF bank averages
showed a gain in cash Of more than Slf,0OV00o'
but owing TO q large expansion in loans only
small proportion OF the increase in actual money
was reflected in the reserve above legal require
mAnts which advanced to S25,5SS,175, against
s22 ,s75 at this time year ago. and SlS,4oO-
700 in the same time in 1907 Tho statement or
actual conditions as OF Friday night presented
a gouewhat smaller gain in cash and reserve.
ora an increase In loans OF nearly 900 less
than In the average figures. While loans OF the
banks increased to material extent tnefe was
a heavy contraction in the same item In the
trust cornpay exhibit the decline amounting TO
s1ee72 coo, against gain in the bank fesires OF
s22 074 600 The low rates for money are not
attractive to the trust companies, and, more
over these concerns are now compeheo 10
strengthen their cash IN order TO comply WIN
the law that calls for an increase In trust com
panies by February !. The reserve advanced
last week from 2S70 to o04O
1t ia necessary to look beyond the countrys
foreign trade to find reason for the current
outward movement Of gold. In the month OF
December exports of merchandise, though snow
ing q falling off from the same month In mo
preceding year. presented an excess over imports
TO the value Of $76.S575S6. and this not"lth
standing q substantial increase IN the Vsiue u
foreign goods received. AS compared with De
ceuber 1907 imports showed an Increase TO the
value Of s1s.714.068 and were the heaviest for
anv month In that year, while exports decreased
s1SO63 358, made UP in great part or loss III
shipments Of cotton and breadstuf1s. For the
entire wear the excess Of exports amounted to
$685. sos $685. while the total volume OF foreign
+rade reached a sum OF s4623, ,018,105 against
So 27O 022 230 IN the year before The excess OF
exports over imports was larger than In any
year in the history or the nation Not"ithstahu-
ing this large balance, which should INCLUDE ex-
cess ernorts of silver the amount Of $40 7O5,
the country shipped s3O.sss,357 more gold than
IL imported, compared with excess gold imports
in 1907 of SSs,1S2,3a1 part Of the trade bal
ence in favor Of this country as SHOWN oy Ihe
AZures Of the Department Of Commerce and
Labor has been offset by the undervauation OF
imports, by interest payments on American Sc
curities held abroad. by the expenses OF Ameri-
can travellers IN Europe, by the investment OF
American capital in other countries and by the
liquidation by foreigners OF our securities. the
latter factor recently having been an important
influence in the strength OF the foreign exchange
market. Money rates abroad are higher than
they are here and bankers naturally are dis
posed to leave and increase their balances at
foreign capitals, and Just as long as these con-
ditions prevail gold will be taken from the
United States for Paris or London account
Direct shipments Of gold to London are likely TO
develop a any time in the near future This
country however, is still a creditor nation.