New-York tribune., 1909-02-20
FINANCIAL AFFAIRS
MOST STOCKS LOWER,
Steel and Equipment Shares Dorn-
Banks Gain CdSh-Sterling
Rates Higher.

Further liquidation and bear pressure marked
the opening OF yesterdays stock market Whle
in the subsequent morning operations the sell
ing was heavy enough TO bring about lower
prices throughout the list, without. however any
indication Of Generalization The remainder OF
the day the general course OF values presented
great irreEularity, With recoveries in NUMBER
Of issues, notably the Hartman shares. when
were helped by the announcement OF the long
expected Southern Pacific financing; in Chesa-
peake & Ohio, Reading and Consolidated Gas
which ended at gains as compared with the maj
figures In Thursdays market The railway
equipment shares and United States steel were
the only issues in which declines were heavy.
the downward movement being based entirely on
trade conditions, which were far from satsfac-
tory those affecting steel creating speculative
bearishness In the Street fully warranted by the
facts OF the situation Independent steel max
ing concerns were not prepared for the drastic
cuts made by subsidiary companies Of the United
States Steel Corporation, though the recent un-
derbidding OF the outside producers Of finished
steel products had foreshadowed an attempt by
the Steel Corporation to recover business recently
lost as g consequence Of the lower prices made
bv the independents The steel trade may en-
gage in a price war, but the consumer viii get
his goods at a cheaper cost. while out Of the de
1noralization in the industry will come more
healthful situation, with prices that will be fair
to the buyer and that win stimulate a better de-
mand in all parts of the country. Steel prices
have been too high, and in their decline Is seen
the working Of an economic law which no ag-
gregation of capital can combat successfully for
auv length Of time. The uncertainty over the
extent of tarin readjustment steel and the
current slashing of prices naturally have caused
uneasiness in steel trade circles, but the posi-
ton Of the trade contains no element that sug-
gests permanent disturbance. United States
Steel common lost q and the preferred I. trad
ing in the first named being heavier than in any
other shares dealt IN. while the transactions in
the preferred were light and did not represent
investment liquidation The railway equipment
shares lost from q to 21s. In the general mar
ket there were more net losses than gains.
According to the known movement Of money
in the week. the banks have gained about 1885,
600 in cash holdings. the receipts Of currency
from the interior being large enough to offset
the loss sustained by the local institutions on
their operations with the Sub Treasury. The
gain from out Of town sources was larger than
ordinarily reported at this period of the year
and reflected the inactive condition of the money
market at other centres and the disposition Of
banks at the interior to send their funds here
in order to take advantage of the opportunities
in the call loan market, which, though yielding
only small rates, gives the outside lender a bet
ter command Of his money than he can secure
in his home money market. The New York call
market has the advantage Of insuring the lender
the benefit of every change IN quotations. and
at this time lenders are figuring on the prob
ability Of soon obtaining better price for the
accommodation they have to offer. Rates for
money in the current week have not indicated
any important change in bank statement figures
to-day as compared with week ago. when the
reserve above legal requirements stood at less
than O,000, against more than $4,000 600
last summer, when time money was somewhat
higher than 1t Is at present. Money was in light
demand yesterday, while there was a better de-
msnd fof remittance in the foreign exchange
market, the inquiry representing in part the
active selling OF American securities for Euro
pean account in the last few days and an In
sufficient supply OF commercial bills. notwith-
standing an improved export situation. Money
market conditions abroad were not materially
changed, but some uneasiness was reported in
London financial circles over Paris ruuors of
renewed friction in Southeastern Europe regard
ing the Balkan settlement which the British
capital believed had been entirely eliminated
from the situation as a disturbing factor Paris
exchange on London was lower.