New-York tribune., 1909-06-12
FINANCIAL AFFAIRS
M4NY STOCKS HIGHER.
HIGHER.
Southern Pacific IN Demand d-BankS
Gain Large amount Of Cash.

Though stock market movements exhibited
certain amount Of irreEularity. the general list
closed the day with prices for the greater num-
ber of issues at net gains, the best advances
being made in the last hour Of trading under
the influence Of aggressive buying in Southern
Pacific. The strength in this issue brought
forth the rumor thai the Union Pacific would
exchange its $34,000,0O0 Of Southern Pacific pre-
fcrred for ~ per cent bond and 90 per cent
in cash. handing over the cash 10 its stock
holders a special dividend. equal to about $ls
per cent the Union Pacific common stock
outstanding II is fair TO assume that the Union
Pacific stockholders will benefit in some way
from the Southern Pacific preferred which their
company owns, and 1t is not improbable that
announcement soon may be made regarding the
matter. il is understood that everything in
connection with the Southern Pacific preferred
stock retirement plan was arranged prior TO Mr..
Harriman's departure for Europe. The rumor
Of an extra Union Pacific dividend however.
did not fit in well with the movement of Union
Pacific stock. which failed TO show anything like
the advance reported in Southern, Pacific. the
latter enjoying maximum gain more than
points and net gain nearly as large. United
States Steel in better demand. also North
crn Pacific Ontario & Western. Wabash pre-
ferred American Beet Sugar and American Cot
ton Oil IN which substantial Improvement was
recorded Realizing sales in Baltimore & Ohio
Rock Island AtchisOn, Erie, Pennsylvania and
Union Pacific were reflected in unimportant
fractional losses at the close. while weakness in
Colorado & Southern induced by the failure
Of the directors to declare another per cent
dividend at their meeting Thursday Stocks
were sold in part of the list under cover Of
buying in another the general movements ap-
parcntly indicating a desire among many spec
ulative interests TO take profits in the leading
active shares and stimulate upward movements
in stocks that recently have not been conspicuous
for their activity, as, for instance. Chicago *
Northwestern, which closed at net gain Of
more than l point Strength in Northern Pa
.ssI 3l,z
the stock would be listed on the Berlin Boerse.
while the advance in Wabash preferred revived
the old Lackawanna control story.
The interior continues to send money to this
centre in large amounts. the estimated move
ment Of currency in the week showing a gain
by the local banks in cash holdings of upward
Of s5.500,000. the greater part of which repre-
sented shipments of funds from out Of town
points. Much of the money that has come to
New York in recent weeks has gone into the
stock market both on Investment and specUla-
tive account, purchases for Western interests
having been especially heavy In the high grade
railway shares and in United States Steel COM
mon and preferred with a large proportion Of
investment buying in the latter. In view of the
large expansion in bank and trust company
loans last week and the active speculation in
stocks in the current week to-day's Clearing
House statements Will be studied with particular
interest by the financial community, which.
though not at ali concerned the relatively
light bank reserves. believes that conditions
gradually are working in the direction Of a bet
ter price for loan accommodation some indca-
ton Of this probability being reflected in the
hrmer tendency now ruling in the call depart
ment OF the market and in time loans of long
maturites Sterling exchange is closing the
week above the level recorded a few days ago.
but the strength of Paris exchange on London
eliminates the possibility Of exports of gold from
here TO the French capital a regular exchange
operation. though II is conceivable that with a
slight decline at Paris and a further advance
here engagements Of the metal would be FEAST
bic. London has been selling stocks in this
market IN the last few days. the transactions /
being an influence in the higher quotations for
sterling. but the chief factor in the exchange /
market is our foreign commerce. which continues
10 show heavy gain in imports of merchan-
disc and falling off in shipments of bread |
stuffs, with a gain in exports Of cotton. There /
are not enough cotton bills Offering however TO |
effect to any material extent exchange rates
owing 10 the extremely active demand for re-
mittance as consequence of big imports Less !
foreign money is being put out here than re-
Gently recorded. due the higher discounts
abroad. II there should be substantial ad-
vance in local money rates a large amount Of
European funds doubtless would come upon the
market.