New-York tribune., 1909-04-26
FINANCIAL MARKETS
STOCKS MOVE HIGHER
Bull Speculation in Hheat Coltapses
Monetary Situation.

he
public demand offset realizing sales as an in
fuance on values and while the character ot
this huvfns was not Of the best 1t rejected
growing bull enthusiasm outside OF wall Sueet
and suggested to many minds the proba blltH %
further improvement before the inevitable spec
uIative collapse develops. The bottom went OUT
Of the wheat market in the week but the oper-
alton was without effect on stocks. AT times
evidence Of aggressive manipulation was pre-
scented in stock trading, especially IN Reading
which sold at its best price since 1905, when
level OF l64 WAS attained by the issue, and IN
Wisconsin Central. which advanced more than
3 points in Tuesdays operations. without the
accompaniment Of actual news affecting the
property The fact that the majority Of stocks
are selling at range that fully measures the
better industrial situation and discounts expect
ed Improvement following the enactment or 4
new tariff law does not enter speculative argu-
ments at the moment and while there are rev
bears in the Wall Street community. transac-
tions for lower quotations are not at all popu-
lar and interests who suggest the wisdom OF
caution in buying margins at prevailing hs-
ures are considered undesirable Wall Street citi-
zens Monetary conditions at present offer no
opposition TO speculation for the long account
but it is conceivable that the ease of money may
lead 10 dangerous imitation entailing the usual
serious results to the overeuthuSiastiC pubic
And il also is conceivable that gold may leave
the country in volume large enough TO bring
about material change in loan rates. especial
" if at the same time there soon should deNel"P
a more active inquiry for accommodation from
mercantile quarters. Reports from most parts
Of the country Indicate gradual Improvement in
our industries and foreshadow heavier demand
for money from our merchants and manufact-
urers.
The foreign exchange situation occupies po-
sition of great interest 10 the financial centres
New York is shipping gold To South America in
conside1a BILE volume for the account OF LONDON
and though London appears TO be buyer OF
balance in the local stock market there IS no IN
dcation of am supply Of bills against these
purchases. Paris exchange is against LONDON
and the Bank OF France again is a competitor
for the South African gold which is oHered
weekly in the London market, and while money
rates are easy at the British centre there is sttl
some chance of gold shipments TO that point
from the United States And as gold tends to
leave the country our nelastic bond secured
currency continues to expand with little chance
Of any contraction There is no known neces-
sity that requires an increase in circulation at
this time, and the gain in the volume of bank
notes serves TO promote dangerous speculation
more than any other factor in the situation. II
is to be hoped that the decline in wheat last
week marked the end Of the bull speculation in
the cereal. for with its price at lower level an
export demand doubtless will arise with the eff
feet Of supplying the exchange market with
commercial bills. of which there is a great
scarcity at present. Underlying conditions in
the grain world not as favorable to bull
onerations in wheat as they were a few weeks
ago and from now on greater difficulty in main
tanning prices at advanced levels will be eX-
perienced A large amount Of wheat that has
been held back for speculative reasons. both
here and abroad including heavy supplies in the
Argentine will come the market. while
the outlook for new crops in all parts of the
world is far more promising than il was earlier
in the season. with indications favoring a sub
stantial increase in the spring wheat acreage in
the United States. The wheat market last week
reached point where il tumbled from its own
weight one of these days the stock market
viii go the same way, though the movement Will
not reflect any weakness in conditions govern
ing intrinsic values. Some courageous operators
tried to weaken prices last week, on the theory
that the proposed trip of Mr. Hartman to
Europe indicated that he was sick man. hut
the movement amounted TO little. the gentle
man in question refused to confirm the reports
of his grievous condition. Union Pacific ap-
parentIy is on its way TO 200. while all the Har-
riman issues evidently will do better, even the
prospects of the Erie, which is now cassed with
the Hartman group. being brighter. The Erie
has had hard row to hoe. but its chief troubles
now things Of the past
Ease in money is reflected in greater specu-
Iative activity in the bond market, in which
total transactions last week amounted in par
value to S40.919.000, against S@3.16S000 IN the
preceding week Semi-investment issues were
in demand. while a fair volume Of investment
money moved into hgh-grade mortgages, oper-
ations in the latter however. being restricted TO
some extent by the relatively high prices pre-
vailing and the scarcity of the supply. Munici-
pal bonds find a good market at the moment,
and Of the recent railroad offerings there has
been an excellent inquiry for the Michigan Cen
tral debenture IS, trust receipts which have
been admitted TO quotation in the unlisted de-
partmeut OF the Stock Exchange. 1t is not I'M
likely that in the near future there will be some
important bond offerings 10y prominent rail-
roads but it is understood the PENNSYLVANIA
win not place its sS0.000000 bond issue until
later in the season unless there should be strong
indica tions Of a marked falling off in the
rent active investment demand for now issues.
just as long as capital continues jim large sup
ply there will he good market for bonds and
IN the remainder Of the current year there will
be q large output Of new mortgage issues for
rcfundng purposes and for future require
meHts I'm connection with new construction and
betterments. Railroad earnings SHOW improve
ment as compared with this period year ago.
while comparisons are beginning 10 make
more favorable showing with corresponding
times in 1907 and 1906 with the gain confined to
no one part Of the country. the Southern and
Southwestern companies making exceptional
increases. For tie second week in April roads
reporting present gain OF 10 per cent against
1855 pcr cent IN the week before. Railroads soon
will be more active iu the steel market. and II is
helped bv better orders from electric compa-
ries which in recent months have been ex-
ceedIngly light buyers. The general outlook
in the metal trades is far brighter than it
few weeks ago and expert observers Of cop
rer conditions are not alarmed over the piling
I'D of copper stocks. It is asserted that with
the resumption of business activity it will not
require any length Of time to clean up the i'm
rnense amount of the metal that comes from
the current overproduction-
Announcement in the week Of the resale TO
the Pennsylvania Railroad Of the large block of
stock of the Norfolk & Western which the
PENNSYLVANIA sold a prominent banking firm
two years ago attracted unusual interest in the
financial community and encouraged the idea
in banking quarters of important change
in public sentiment regarding the ownership of