Norwich bulletin., 1909-06-10
FINANCIAL AND COMMERCIAL.
DECISIVE FALL IN PRICES. Late Recovery Reduced Days Net Changes to Small Proportions.

New York, June 9.-The decisive downward turn taken by the price movement of stocks today inclined speculative sentiment to take account of unfavorable factors; but there was little that was positively unfavorable in the news. gThe rapid decline in Southern Pacific upon the announce ment of the much-heralded plan to retire the preferred stock was taken as an object lesson of the extent to which favorable developments have been discounted in the speculation. The retirement plan left the privileges exchange of preferred or common stock the most attractive for preferred stockholders and made 1T practically certain that it would be followed by all those stockholders. Such an ex- change, it was realized, would leave the company's financial position prac-
 tically where it is, as the effecting of any saving on the present charges would depend on the new common stock being kept on six per cent.
 basis compared with the seven per cent. paid on the preferred to be re-
 tired. An increase in the common divi-
 dend to seven per cent. has been con- fidentiy counted on. A computation of the income return on this stock, even
 with the dividend raiseG to seven per cent, showed that on stock purchased at the price touched yesterday, which was 1855 this return still would be less than on Union Pacific at the price and with the dividend already prey aiiing or the parent stock. It was this compu- tation, which involves no new facts, that was responsible for the contrary movement in the two Hartman stocks. There was an apparent shifting of holdings from Southern Pacific to Un- ion Pacific. The large benefit to ac- crue to the Union Pacific treasury from any increase in the Southern Pacific dividend was an additional incentive to this operation. Quite as much in- fiuence was exerted on speculative sentiment by the departure for Eu- rope of a stock exchange member cred ited with an important share in the largest transactions of the recent past in the bull campaign as by any actual developments in conditions bearing on values. This departure was read as a sign that profits had been taken on a large scale in the bull campaign. The government crop report was of some continuing influence towards depres- sion of stocks, although this was modi- fed by the indifference manifested by the wheat market to the governments s figures. The spee2iation was disposed to a more sobsr consideration of the large reliance placed on the immature spring wheat and the newly planted corn crop for the favorable l1arvests that are hoped for. Further discount ing Of prospects so distant apparently did not appeal to favor A distinctly had impress sion was created by the out ,rme of the New York city bond sale, for which applications were less than twice the amount offered. The low price realized, which reached only 100I1 on the average, was further cut by sales of the bonds when issued on the stock exchange as low as 100 1-2. The slight rise in the call money rate was ascribed to the applications for the New York city bonds, moderate though they were. An active demand has sprung up for funds on time and rates are advancing. Discounts also rose in London and Paris today. The general money situation. therefore, was shap- Ing itself quite definitely away from ease. The aggressive rise in Union Pacific helped the late restoration of the price level and reduced the days net changes to small proportions. Bonds were easy. Total sales, par value. $5.Ss0,000. United States bonds were unchanged on call