New-York tribune., 1909-01-25
FINANCIAL MARKETS
LIGHT STOCK DEALINGS.
Ueek's Movements Shoe LATHE
Change in PrIces-Money DC
cvmuIates at This Centre

either direction in last weeks operations I'le
range Of prices at the close showing few i'm
ro-fapt differences from the final figures of the
week before and ending only trif1e under the
best level of the year made on January = when
quotations were at the highest points since the
elimination of the long period of advances that
preceded the panicky slump Of March, l9V"
Prices being maintained upon stable OASIS
but no aggressive efforts are being made to
bring about a steadily rising market. in some
of the second grade issues speculative operations
have been successful in carrying values 10 ng-
11res that more than measure the actual worth
of the securities and while there are reasons
90 encourage the belief that this movement viii
continue there is nothing in the character or
trading that suggests an extended bull move
ment in the general market from the current
quotation level Most stocks are too nigh TO
appeal to investors and the public shows no
disposition 10 load up margin account not
yrithstanding the ease of money and the bright
prospects for better things In the industrial
world as the year moves on Stocks are III
strong hands, however and unless something
should turn up Of enough significance to induce
liquidation an old-fashioned bear campaign
hardly will develop In the last year lafse
amount OF stock has passed into the stronS
boxes of investors, where 1t doubtless WI! r.
main for the good reason that it is returning q
comfortable yield to its owners. but II IS CON
ceiyahIe that some of the larger Wall Street m
terests might be inclined 20 use their influence
TO bring speculative holdings on the market l"
an extent that would establish prices on =
cheaper basis in the hope OF stimulating a buy
ing movement that would carry values to
range far in advance of that noA prevailing,
thus facilitating an unloading process 1or t'e
account Of the operators who Tor many lnohuS
have been the chief forces behind the rise IN
quotations. There are uncertainties In the SIT
nation that naturally discourage the accumua-
ton of stocks borrowed money at existing
prices but there is no indication Of the deveiop-
ruent of anything IN the world Of money ana
business that will warrant the safe OF ACTUAL
investment possession.
Notwithstanding the abundance of gratuitons
advice now current in the Street to buy stocks.
the market does not look attractive for extended
speculative operations, while outright purchases
at the present advanced level do not attract
conservative operators The fluctuations IN
values last week were made entirely by the
transactions OF the professional element Wnlch
worked for profits on fractional changes on DOT"
sides of the account, the general dulness OF the
dealings and the small variations in quotations
rejecting an utter lack Of outside interest and
an absence OF activity on the part of the people
who are supposed to have the power TO make
or unrnake markets There are times when even
the influence Of capital cannot bulge the mar
ket and such a situation seemed to exist in
recent operations Capital can advance quota
tions to q certain level, but beyond that II
cannot go, unless it is backed by an active de-
mand for its wares from an enthusiastic specu-
lative public The latter has learned something
beginning to show an inclination to buy cheap
and sell dear an operation distinctly opposed to
the plans Of the big speculative interests, who
depend upon the public to take their stocks at
advanced figures Therefore, it is not surprising
that the public demand for stocks just now IS
extremely light and that even with carrying
charges at a minimum the outsiders do not see
great profits in buying at current market values
The public is becoming cautious, and as 1T will
not buy some commission houses that have a
Gatl Gpair ra mai
to encourage a HQuidating movement If they /
could find anything in the outlook that would
indorse such an operation. Perhaps the best |
argument for lower prices may be found in the |
high level which stocks in general are selling
in the increase in new securities offerings and |
in the indications that some houses have al |
lowed their enthusiasm to run ahead of common |
sense in the matter of loading up with bonds on |
the assumption that there be no end 10 the |
public appetite for new attractive issues.
As far as general conditions affecting intrinsic
values are concerned there is reason for dis !
appointment. The country's industries are max !
ing conservative progress but nothing in the |
nature of a boom appears in sight To great
extent uncertainty over the tariff is restraining
trade Fundamental conditions, however. are
sound and gains recorded in most lines Of
business as compared with this time a year ago |
when panic effects upon industrial activities
were beginning to be acutely felt. Some OBJ
servers assert that increased railroad earnings /
and better bank cearings lose most of their |
significance because they compare with period
of depression a year ago, but the very fact that
these gains are being made reflects that pc
riod Of recuperation is under way, with every
promise of developing into long stretch of in
dustrial prosperity Railroad gross earnings
for the first week in January show increase
Of per cent over the corresponding time in |
1908 and for the second week an increase of az |
per cent while net returns coming to hand
for the month of December make noteworthy |
4ho Last fxrn1y t6z fha al
roads Of the country have practised great econ
the heavy falling off in gross earnings re-
suit OF business disturbance has been offset TO
material extent as an influence upon net re-
turns, the latter in the majority of cases having
been large enough provide for dividend re-
qurements, lower dividends and passed divi- |
dends figuring as the exception rather than the /
rule Owing to the enforced economies OF 1898 !
increased railway expenditures liberal scale |
will be factor Of mean Importance to the !
country's business activities in the course of
the next two years. assuming that current indi-
cations foreshadow the establishment of bust
ness in general upon normal basis. and ex-
pansion in the operations OF the railroad equip
rnent and supply companies doubtless will |
be reported from these sources The number of
idle cars is heavy, but steady reduction is |
looked for
Money continues to accumulate at this centre, |
and the gain from the interior and from excess !
government expenditures will prevent the recall |
by the government of federal deposits from the /
national banks from being factor in the money
market. Both call and time funds are quoted |
at extremely easy rates The demand from !
mercantile quarters is light and bankers be |
moaning the fact that there is little for their
balances in spite of an active inquiry for gold /
at Paris and in South America and a Bank of I
England situation that suggests higher discount /
rates unless Paris releases some of its gold or
ceases its demand for the South African metal !