New-York tribune., 1909-05-01
FINANCIAL AFFAIRS
SECURITIES 1DT1NCE.
Traction and Eries Strong Features
Call Money Higher.

Operations by the pools and active individual
traders were responsible for a strong market III
the greater part OF the day, nnal prices SHOWING
net gains throughout the list Interest was con
fined TO no one part of the market, Uansac-
+ions for higher quotations shifting from one
stock to another opportunity for better hsnres
appeared promising, the movements being &C
companied by various explanations lhEoi'IIIs
good things ahead, but by no actual news al
fecting the properties represented. The adjourn
nent Of the state Legislature appeared to please
the Street. especially the bulls on BROOKLYN
Rapid Transit, the end Of the session was
accomplished without the passage OF the Coheg
Island five cent fare bill, while spectators
thought Erie also ought TO go higher as con-
sequence of the passing for the time OF our
lawmakers though they could not tell the reason
why Traders at present really might as wen
remain silent and let stocks advance without
trying to offer explanations which are silly ana
exceedingly obtuse. The market Is advancing
because money is easy and at the command OF
powerful operators who are espoused to the pun
side of speculation. These operators have the
utmost confidence in the future of business IN
this country, and apparently they are not con
cerned with the question as to whether or not
ouotations have discounted coming improve
rnent in our industries. as they have In the
abundance of money at cheap rates sufhcleht
argument to induce them to maintain a posltloh
on the long side OF the market This TACT now
ever does not warrant the purchase OF slocAS
on borrowed money by small publlc uaueIS' y
is not a good market for the small bull' Or loi
that matter for the small bear. An advance IN
call money in the last hour to . per cent ana
the strength in the wheat market throughout
the day were not effective influences on STOCKS
here while in the London market the STOCK
exchange taxation proposed IN the new tuuget
Was met contrary to expectation Dy rl9iIs
values The local traction shares, the Ere Is
sues Colorado & Southern stocks, Amalga-
mated Copper American Smelling and western
Union were the strongest features, while Read
ing and Union Pacific failed 10 MAKE espetIii'
gains owing to heavy realizing sales
Though the banks have gained on their opera
+ions with the interior in the current week. the
net movement of money shows a loss IN CdSi'
holdings Of more than S2pF)eb owing 10
heavy ravl..ants 70 the Sub-Treasury, including
+J,o' 1aL,nent b,, the American Sugar Refining
Cornpany of back FUNDS due on customs account
The fact that currency continues 10 come 10
this centre At this period OF the year Goes not
on the surface speak We'll for the condition or
business at out-of-town points. but It heed not
he assumed that the lack Of demand at the IN
+erioy on New York for accommodation and the
excess receipts Of money here renect business
stagnation. AS matter OF tact. the Noluiiio
of actual business in various parts OF the coun-
fry IS expanding. indication of when is pre-
sar+ed in larger bank Clearings and heavier
railroad earnings. and the absence OF an actlVe
inquiry here for money for OUTSIDE account is
exnIained 10y The large supplies held by pahhS
at other cities which are able TO take care OK
t,,,e necessities without withdrawing their bal
apcas from New York. Trade conditions are
NOT weak. The General situation is inherently
so,,nd and the outlook for the return Of normal
tir,ez is most promising. One of the best signs
OF better days ahead is found in the confidence
OF bankers over the future and their willingness
20 encourage new financing by the corporations
Railroads have trouble in placing long tune
obligations though only few months ago 1t
xvae difficult for them TO raise money except
on short term notes at great cost. And for
.t,asa rotas bankers had ready market
The demand for high class railway mortgage is
sree e active. and from current indications the
output Of new securities of this character in the
rressot year will make new record. the amount
issued so far approximating S510,OO0.OOO. Money
market conditions are favorable for such opera
tions. and the fact that IL Europe as well as
in this country there has been tremendous ad-
di+fon to the amount Of available funds soon will
he reelected in large takings abroad of American
railway bonds.
railroad earnings for the month of March re-
ceived in the current week furnish excellent
reasons for optimism over the future of the
railway business in this country. Both gross
over the same time year ago, and though
compsrisons are made with period when bust
ness was light, the gains are none the less sig
nifcant as an indication OF gradual industrial
Improvement The Pennsylvania Railroad.
,,hicl, handles a most diversified traffic and COW
ers a wide area. supplies in its earnings a good
indication of general trade conditions For the
month OF March this companys returns, which
were received yesterday, show on the lines east
of pittsblrg a gain in gross 0f 81, 500 and a
;v. NET of S.siE{ 400 while the lines OF