New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-02
FINANCIAL MARKETS
HIGH STOCK AVERAGES.
Best Prices Since 1906 Made Last
Week-Money Rates Easy, S0ith
Higher Quotations in VieSC.

the various favorable motors 10 DrlIlg ABOUT Il
higher level OF prices. the movement being &C
cornpanied by the establishment Of new records
for many issues while the general average at the
end was higher than at any preceding time since
the bull market Of 1906. Though the public was
not an active factor fin the dealings, commission
houses transacted larger business than report
ed in many weeks with indications pointing to
an enlargement of the outside demand in re-
Spouse TO the generous efforts of substantial
speculative interests in the Street to make things
attractive for the people who always come into
the market when prices have moro than dis
counted all the favorable features Of tho situa-
ton. Public operators who are buying at pre-
vaillng levels would not touch stocks when they
could be purchased at reasonable figures and
the fact that they are now nibbling at the bait
so skilfully cast before them by the clever
anglers of the Street suggests increase in
the amount of stocks in weak hands and quiet
liquidation by holders who quite willing to
let the other fellows have their stocks at the
current fancy prices. There was considerable
amount Of selling Of this character last week;
indeed. in the last few weeks there has been
large transfer of securities for the account of
operators who have preferred the cash to their
paper profits There is investment buying
in the larger number of railroad shares. owing
TO the small yield at existing high quotations,
but among the industrial stocks of merit actual
purchases are still being made, as prices In this
department OF the market have not, as rule
passed beyond the investment level. notably in
the railway equipment issues. Good buying is
reported in American Smelling. National Lead
and Amalgamated Copper. while the fact that
United States Steel common has reached an adj
vanced range for a per cent stock does not
deter spectators from loading up with the Sc
curity on relatively small margins It does not
cost much to carry stocks under present money
market conditions and the merry operations OF
buying margins and specializing further on
paper profits doubtless will run on until halt
&c lied hH~ a., ri-o sT.o
or the development Of something Of a passing
adverse influence
An advance in the dividend on the common
stock of the United States Steel Corporation
the splendid exhibit of earnings by the concern
IN the last quarter, the promising progress ma de
by the crops, increasing railroad traffic and the
agreement on the tariff naturally strengthen con-
idence in the country's industrial outlook and
encourage the idea in speculative circles that on
the basis Of the country's material progress.
quotations for stocks should move 70 a much
'better level despite the near approach Of the
time when higher money rates will develop. II
Is possible that before a substantial change takes
place in the money market speculation will run
riot in the Street. In that event the subsequent
reaction will he severe and the losses heavy for
the optimistic buyers who Just now can see
nothing ahead but a long. uninterrupted period
Of advancing prices The bull market IS likely 10
strike a snag when II least expects II. Warn
ings, however. against overspeculation and the
stocks have advanced steadily for many months
are not popular and II is not likely that they will
he needed any more in this particular instance
than they have in the past. when bull markets
have crumbled from their own weight and from
forced loan liquidation. The banks are making
preparations for the financing of a large interior
call for funds. and already the movement If
money and domestic exchange show signs Of the
coming outof-town demand which promises 10
be unusually heavy in the course Of the next
months owing n fcb h.
sold at good prices. and the expected active in
dustrial revival following the final passage 81
the tariff bill Bank loans on speculative com
rnitments are enormous and the lending institu-
lions doubtless will be compelled to reduce such
accounts Just as soon as the interior INQUIRY be-
comes urgent Shipments Of currency from New
York last week showed an increasing tendency
while receipts presented noteworthy decline
from those OF recent weeks
Earnings Of the United States Steel Cornora
ton for the June quarter showed a significant
gain month by month and an increase over the
preceding quarter and the same period year
ago. with a noteworthy addition TO the amount
Of untitled orders on hand. the general exhibit
presenting the strongest sort Of reasons for en-
thusiasm over the future of the iron and steel
trade. especially as the Improvement in earn
ings was accomplished on basis OF 10 per cent
Of the concerns capacity and at prices from S5
TO IS ton under the level reported prior TO the
establishment of the open market last February
The surplus for the last quarter was upward OF
100000. after all charges and dividends in
Guiding the increase in common rate Of ONE
quarter of ! per cent. but even with this COM
Portable balance the conservative element in the
Street indorses the action Of the directors IN not
advancing the dividend to a per cent basis at
this period. There is not the fantest doubt in
the minds q the larger number of Wall Street
observers that eventually Steel common will paw
more than per cent to its holders, while Il is
not considered unlikely that the directors viii
declare per cent at the next quarterly meet
ing The demand for pig iron is increasing and
the orders for finished steel products are grow
Ing at rate that foreshadows another advance
In steel prices in the near future, which should
enable the Steel Corporation to end the wear
with net earnings In the neighborhood Of S14O-
100000. or only $20OO0.O0O under the record
breaking results of 1907. The steel market Is
most trustworthy barometer of trade and itq
present condition therefore supplies ample are,1-
ment for bull sentiment the future of our
industries. Spectators are talking par for Steel
common and $50 for the preferred The latter
is worth that price as a sound Investment nro,
osition. II can be bought up to $40 to yield
per cent
Union Pacific has passed the 200 mark and
now returns a trihe less than per cent as 4
10 per cent issue. The enormous resource of
the Union Pacific company and its constantly
growing earning power practically place the
stock in a class by itself. and it therefore can
not be judged by ordinary market standards
There is little reason to doubt that eventually
the security win sell at $50 While there are
many good reasons to believe that the stock
holders at some future period will profit 20 an
extent larger than the current 10 per cent divi-
dends. The company is earning at the rate OF
- per cent year on its common stock and in
addition is receiving an amount from income
from investment in other companies equivalent
TO about per cent on its stock outstanding the
large earnings being on a traffic that is far
under the actual earning power of the company
In wholly normal times. Union Pacific appar-
of s mas adopted the policy of Kidding itself