New-York tribune., 1909-07-21
FINANCIAL MARKETS
FAIR STOCK TRADING.
insiders -4nniOus to Distribute Their
HoIdings-Moneg Rates Easy.


part of the day. except in the case OF fe"
issues in which the volume Of profit taking sales
was heavy enough to develop an irregular move
r1ent that generally ended in small losses
Transactions of this character were responsible
for moderate weakness in United States Steel
which. however. was kept well in hand by the
interests who are operating in the issue for
higher quotations, the downward swing appar-
entity being encouraged from this source on the
first appearance of realizing, though not 10 an
extent that suggested inside distribution Steel
common. nevertheless. was sold by people who
bought the issue well under its current level,
on the theory that its price had more than dis
counted an increase in the dividend ana the
Improvement that has taken place In the iron
and steel industry. There is no certainty that
the dividend will be increased at the directors
meeting next week and If the management Of
the corporation follows its usual conservative
policy stockholders will be compelled 70 wait a
while longer before receiving p larger distr1bu-
ton. Rock Island shares again were taken by
good class OF buyers; also New York Central
chesapeake a. Ohio, Erie first preferred Auleri-
can Cotton Oil and Union Pacific, the last
named being bought on the idea that reason
able profit can be secured on the issue before
Il reaches range that must invite heavy liqui-
dation The manipulation that has been so
common in recent weeks was not lacking in
Yesterdays general operations, especially IN the
late afternoon, when prices were pushed up 20
z more attra ctive selling level under the leader
shin Of Union Pacific. Southern Pacific, st Paul
and Canadian Pacific. The Street has the idea
that the recent sale by the Union Pacific Of its
Southern Pacific convertibIes and the announce
rnent Yesterday that the company had disposed
Of s10.O00000 Atchison preferred foreshadoW
some new purchase by the road or some i'm
portaut development in connection with its ex-
mansion. Insiders tremendously bullish, and
they make no efforts TO conceal their enthusi-
asrn. This is good sign that the insiders are
getting ready TO let the other fellows have their
stocks.
In connection with future Treasury needs It
is interesting to note from the governments
daily statement Of receipts and disbursements
that since the first of the fiscal year there has
been an excess Of payments to the amount Of
S. s66s 486 on ordinary account, against a deficit
in the same time last year OF Sf7451.645, and an
excess Of all receipts, including public debt and
Panama Canal of S9750030, compared with
s25S9f, ,395 in the corresponding period in 1908.
Customs income since July l has been more
than s6.000,000 larger than year ago. while
disbursements have been nearly S4,00o,00O less,
and as July is a month OF heavy federal pay
ments the record so far is encouraging, as the
tendency Of receipts is to increase and that of
to decrease. Panama Canal pay
ents not being taken into consideration, mas
much in the future the construction expenses
of the canal are to be wholly met from the sale
Of bonds. if the present plans Of the admins
tration do not miscarry. As q consequence OF
government Withdrawals of federal deposits
from national banks the working balance in the
Treasury shows an increase since July I Of
IS, 1872 4I5 now standing at 535S90,415, deposits
in depositary institutions in that time 70 the
credit of the Treasurer of the United States
having decreased s16,237.951, the difference be-
tween the latter amount and the gain IN the
working balance being accounted for by the
excess of government payments over receipts
from the beginning of the fiscal year There is
vet to be returned 10 the Treasury upward OF
So 600 900 under the Secretary's recent call, and
IL is not unlikely that the bonds already re-
leased and 10 be released with the payment of
the remainder OF the government deposits will
be used for the issuance of new banknote cir
culation which shows increase OF upward of
100000 compared with the amount out
standing on July l.
The banks are preparing for the active de
mands that will be made upon them in the late
summer and early fall by selling securities that
show large profits over the purchase price, and
by taking out new circulation the necessity of
increasing resources being greater than usual
owing to the large amount of gold that has been
shipped abroad. the prospects of big crops at
high prices and the increase in wages and in
the general cost of living. the last named being
a factor that must be taken into consideration
in discussions regarding the future OF the money
market The fact that money is cheap all oyer
the world at the moment is surety that
sitter rates viii not prevail in the fall The
United States Is debtor TO Europe at q time
of the year when a credit balance is most dA
sirable, and the fact that sterling exchange has
been sold heavily short in expectation of cover
ing when grain and cotton come forward for
export in the autumn while working against
further gold shipments 10 Europe Just now will
interfere with q movement OF the metal to this
country in the fall. the demand from pres
ent snort sellers of exchange will serve 10 main
tain sterling quotations under the level al which
imports could be negotiated.