New-York tribune., 1909-02-21
FINANCIAL AFFAIRS
STEEL SHARES DOWN.
Railroad Issues Shoe Resistance to
Bear Pressure Hold
ingS Increased.

Stocks were weak in the two hours Of trading
moderately active volume OF business the
chief transactions being supplied by United
States Steel, the Hartman shares, ATna1gaInated
Copper and Reading. The demoralized condltlon
of the metal trades again was the leaolng con-
side1ation affecting speculative sentiment ana
though the attitude of the United states steer
CORPORATION at the present Juncture means Ile
DEVELOPMENT of a more healthful iron and steel
situation ultimately there was no willingness on
the part of the speculative community 10 take
the smallest grain of comfort in the theory that
current price reductions viii serve TO stimulate
a better buying movement and eventually re-
suit in increased earnings by the big steel con-
Germs. OF course, for the present there VIII De
uncertainty and uneasiness in iron and steel
trade circles and in other quarters, but there Is
nothing in the outlook that should discourage
investors in United States Steel preferred,
though it is extremely unlikely there Will De
anything favorable for the owners Of the com
mon in the way of better dividends for long
time to come The United States Steel Corpora
ton is in an unusually strong position. It's cash
resources are enormous and II is absurd TO De-
lieve that its business will go to pieces because
OF a war of prices. The independents are not IN
so favorable position. Both in steel and cop
Der the buyers are now making the prices and
the chances still lower quotations wlil De
made before material improvement Is recorded
especially in view of coming tartn changes II
is even quite probable that steel rails, that have
held at the high price OF S2S ton for so many
years will be reduced. If they are there will be
a tremendous buying movement among the
transportation companies, whose requirements
are heavy as a consequence of the economies
practised last year. And lower prices for steel
should encourage lower prices for railway equip
rnent and an active demand for all sorts of
rolling stock.
United States Steel common sold at new low
point for the year; also Colorado Fuel and Iron,
the latter suffering a maximum loss Of more
than points Republic Iron and Steel shares
and the railway equipment issues also were
weak features while in the general railroad list
prices showed some resistance to the influence
of the decline in the steel securities. Amaiga-
mated Copper was relatively firm under the in
fluence of better buying than recently noted.
Copper issues have been declining for long
time, and some observers believe that they have
about discounted the unfavorable copper trade
127s cents q pound Friday, and consumers,
including the export trade, appeared quite con-
7ident that still cheaper level for the metal
would be recorded. The general market closed
dull and heavy. Weekly bank statement figures
showed g substantial increase in the reserve,
both in the average compilation and in the ez-
hibit of actual conditions as OF Friday night,
while there also gain in cash holdings and
a material contraction in loans AS a result Of
all changes the reserve above legal requirements
now stands at S13,045,OI5, against S3Z,46S,05O
at this time year ago and 81 3095 in 1907.
Current cash holdings are more than S4I,O00,OO0
larger than thev were at this period in 1903,
and loans show an increase OF more than SII9,-
100000 Total loanS however, are well under
deposits. The trust companies also Increased
their cash and reserve, and showed decrease
in loans. The loan market In the last week was
lifeless the chief business representing hquda-
tion of obligations stock market account.
The mercantile inquiry for accommodation was
extremely light not only at this centre but in
all parts of the country, the inactive condition
OF the money market at cities outside New York
being reflected in a heavy movement of currency
from the interior to New York.