The sun., 1909-02-21
FINANCIAL AND COMMERCIAL.
SATURDAY, Feb, 20.

actions to-day, the one a further enor-
nous selling of the United States Steel
issues. principally. however. Of the COM
mon Jshares. and the other the great re-
sstance presented by the stock market
as Whole TO tho sympathetic influence
Of declining movement OF such magni-
tude in a prominent quarter OF the Sc
curity list. There was no further news
bearing upon the steel situation to-day
than WIS contained in the formal statement
Issued by Chairman Gary OF the board Of
directors of the United States Steel Cor
poration last evening which had been fully
foreshadowed both In popular estimation
and by tho course OF events yesterday.
The view Of spectators and OF the ma
iority of investors was naturally 10 the
ntreot tnat until there were some signs
- q Jackening Of liquidation In the
. United States Steel issues buying orders
herein should be withheld. On the other
hand there we're those who we're ooura-
geous enough 70 buy Steel common stock
to-day. basing their purchases upon the
solitary fact of the large and sudden
decline that has taken place in the price
o. the stock The stock has fallen since
'.onday ~ points. a drop in IL TO an
extent which has usually in the past ex-
hausted the power at least temporarily.
Of liquidating movement. The fall in
steel to-day Of course provoked de-
cline Ia stocks CT the Colorado Fuel and
Iron and Pressed Steel Car class, al
though. very singularly, the Amalga-
mated Copper and American Smelling
and Refining shares were absorbed with
such readiness that their decline was
almost trivial The same disparity was
presented in the railroad List taken
through and through. There appeared
10 be certain amount OF special pres
upon the Pennsylvania and Reading
stocks by reason OF some apprehensions
regarding the possibility that an adverse
decision In the commodity clause case
may he handed down at Washington next
Tuesday. These. however. we're the
only prominent railroad stocks exhibit
ing any weakness worthy of the name.
even such an active stock as Union Pa
cific common closing at only fractional
net decline. 1t might have been the case
whether it was OF not. that the reason
for the strength thus shown in the stand
ard railway shares was the obvious cir
ctInstance that a reduction in the price
of iron and steel materials means tre-
nendous saving to the railway companies
Of the land. The weekly bank state
rlent to-day. issued after ~ O'Clock, as
customary, received small attention. 1t
was. however. favorable. showing in both
the actual and average figures decrease
IN loans, an increase in cash and round
increase in surplus reserve.
II was the practically universal opinion
in the financial district to-day that the
statement of Mr.. Gary, that was not read
by most people until this morning was
an accurate and fair disclosure OF the
facts concerning the present exigency in
the steel trade. The action OF the Steel
Corporation in using it's influence TO bold
prices steady following the panic Of 1901
has received the warm commendation of
all business men and financial observers
whose experience has been such as to
make them realize the unwisdom OF smash
ing prices. with consequent ruin OF GUS
toners. in the days Immediately follow
ing a time Of financial panic. Such a
period OF maintenance is not OF course
10 be indefinitely prolonged, and there is
not the ghtest doubt that had it not
been for the new tariff laws, now in the
making. a broad cut in iron and steel
would have been ordered before this in
order to meet the natural demands OF
consumers. 1t was the hope of the Steel
Corporation that the producers OF steel
generally throughout the country would
lie content TO follow the corporations
policy OF waiting until the new tariff laws
tod uyb ban hQ ra-
duotion in prices might take place. But
developments came crowding fast upon
each other in the course OF the present
week and it was found impossible TO keep
the small iron and steel producers in line.
There was a consensus to-day in the
higher financial and banking circles that
all indications favored the reliability
that the so-called open market for iron
and steel products now established will
not last for long. II is still 10 be remem-
bered that the iron and steel business is
concentrated as it never was before and
that nearly all Of the large interests in
the trade are in accord with the general
views as TO business policy entertained by
the management Of the United States
Steel Corporation. What has happened
in Wall Street and in the trade this eek
cannot fail 10 have tendency to shorten
the time devoted to the pending tariff
discussion and to cause the anxiously
awaited new tariff enactments TO be pro-
duced with as much speed as possible.
The reasonable expectation is Of course
that at least no greater cut in iron and
steel duties will be ordered by Congress
than those first reported by the Committee
On Ways and Means in the House OF Rep
resentatlves, that is now al work preparing
the new tariff schedule. In other words.
the worst about the matter will probably
he known when the committee brings in
its bill ndeed, there are many who
think that the cuts in iron and steel prices
that have already been made measure
pretty nearly the full effects upon list
prices Of the comp leted tariff revision
programme. Mean while the January
railroad earnings as they are now re-
ported and the statistics Of the building
and textile trades and Of pretty nearly all
lines Of business except metals continue
10 exhi bit Improvement. Money is still
cheap everywhere, and there are gene
rally reassuring features in the situation
that must impress th hemselves upon every
candid aud discerning locker on.
New York Stock ENchan &c Sales, Feb. 10.
ctosrso Ysic.s os UNITED STATES No~p.
srer. .ioI Ioih IS COUP. 90