New-York tribune., 1909-07-25
FINANCIAL MARKETS
BULL TRADERS ACTIPE.
Nezo York Central and Union Pacific
at Record LeueES- Bank Loans
EGpdnd.

Stock market trading was moderately active
In the two hours of business on movement OF
prices that generally tended in the direction OF
a higher level. with net gains in the larger num-
ber of issues at the close, though the improve
ment recorded a rule was confined to frac-
tions. The fact that prices gained strength
from the opening, without important reaction,
encouraged activity among room traders Oh the
bull side OF speculation the theory that the
more important interests were operating for bet
ter quotations the basis OF the expectation
of an early agreement on the tariff and action
the United States Steel common DIVIDEND
that would be favorable to the general market
new high record for the year was made by
New York Central on further operations by the
pool that has been active in the issue in the last
few weeks, while Canadian Pacific and 500"
common also strong features, the buying
of the last named apparently being for the
account of interests identified with the Canadian
Pacific which controls the 500" property This
company and the Canadian Pacific will partici-
pate in the benefits OF the expected large spring
wheat harvest, and the fact that their stocks
recently have been inactive suggests the possi-
bility Of a more aggressive buying movement IN
them in the near future. especially as from
Canada comes the apparently inspired prediction
that Canadian Pacific some day will sell as high
as Lackawanna. Union Pacific and St Paul
in fair demand, and were helped by favor
able crop reports from the territory along the
lines of the companies, but Southern Pacific
relatively heavy selling encouraged by the
general belief that the dividend the stock
will not be advanced at the next dividend period
A bull pool has been operating in this issue on
the idea that dividend at the rate Of per
cent a year would be declared in the coming
month Rock Island was again in demand from
the same interests who have been conspicuous
in the movement in the issue in the last week
Prices were under the best at the close, Union
Pacific which early in the day sold at its high
record of 199k ending at a small net loss; also
Southern Pacific and Canadian Pacific.
Wall Street spectators mixed in their
ideas regarding the probable action Of the d.
rectors of the United States Steel Corporation
the common stock dividend in the current
week but the larger number of traders believe
that the issue viii be established upon higher
basis The price Of the stock has discounted
an increase in the rate, even IL an advance TO
per cent should be announced, and in the event
Of the maintenance OF the security In the per
cent class a favorable opportunity doubtless
would be presented for its accumulation at
more attractive figure, though the power OF
manipulation may prevent material reaction.
The management of the United States Steel
Corporation has not taken the Street into its
confidence regarding its intentions on the divi-
dend question, and there is just as much rea-
son to believe that there viii be no advance in
the rate as there is to believe that II will be
placed on better basis at this particular period,
though the revival in the iron and steel industry
now under way and the remarkable earning
power of the Steel Corporation warrant the be-
lief that eventually the common STOCK VIII pay
more than per cent to its holders. It is be-
lieved on the basis Of the progress made by the
steel trade In the second quarter of the year
that the earnings of the United States Steel
Corporation in that time, the figures Of which
will be available In the current week. will be
close to $50 0OO, ,000 and that in the third quarter
they will approximate S35.000,000 against less
than s23, 100000 in the first quarter when there
was surplus equivalent to 1 per cent on the
common stock. The concern doubtless will show
at least II per cent earned on the common In
1903 hut this prospect does not warrant the pre-
dictiofl Of extravagant dividend payments on
the issue
Bank statement figures for the week showed
an increase in cash holdings in the exhibit Of
averages of S551.300. but slight loss in the
serve above legal requirements, owing TO fair
sized expansion in loans, while in the actual
showing as Of Friday night there was a loss
in cash of $1,T52.100 and decrease in the
serve of s112995o, loans in the latter statement
increasing $l0,944,3o0. Total reserve compiled
on the average system now stands at S34.291-
225 compared with s5s,516250 at this time
year ago and ss.25S675 in 1907. Trust company
loans also showed large gain. bringing total
loan expansion of all institutions in the week TO
trifle more than $2O000.O00. Compared with
year ago loans of the associated banks show
an increase of s7s,33s.3oo and the trust COM
panies and state banks not reporting to the
Clearing House gain of sec l0e, ,s00 or a total
Of s174 44S, 200.