New-York tribune., 1909-05-18
FINANCIAL AFFAIRS
HEAVY TONE IN STOCKS.
Strength in Sterling Exchange
Leads to Heavy Gold Erports
Money Easy.

Throughout the greater part of the day stock
market values showed a heavy tendency, with
distinct signs of weakness in the last hour Of
trading. when the general list was sold by trad
ers and to some extent by commission houses.
There was however, little important liquidation
on the part Of the larger interests doubtless
owing to the lack of activity and the absence of
demand, the inquiry for securities for specula-
tive account being extremely light, particularly
from the so-called public. The leading market
interests which have not yet distributed their
speculative holdings undoubtedly would be glad
to convert their paper profits into cash, but it is
not likely that they will do so on a declining
market, while, on the other hand. it is probable
they viii add TO their accounts in the event Of
sharp setback from the current level. There has
been large amount of distribution in the last
two weeks. but apparently there has not been
enough public enthusiasm in the market to
bring out the biggest supplies. Trading yester
day showed a heavy falling of from the average
daily totals last week, the chief operations be-
ing furnished by Union Pacific, Reading. United
States Steel, Chesapeake & Ohio, Rock Island.
Consolidated Gas, American Beet Sugar and
Western Maryland, while Of the entire transac-
tions stocks contributed upward of two
thirds. The local traction and gas shares were
especially heavy features, but among the stand
ard railroad stocks net losses S a rule were
confined to fractions. Delaware & Hudson and
Great Northern being exceptions at declines of
1 point each Consolidated Gas lost 2A and
Brooklyn Union Gas q. The latter stock pays
dated Gas pays per cent and is quoted above
AS, though its prospects a solid investment
issue are not one whit better than those Of the
Brooklyn company. In the early trading Chesa-
peake & Ohio sold within Is of its best price of
the year. and in most parts of the list general
" steady tendency was reported though efforts
to advance values as rule were unsuccessful
the stock just named, American Beet Sugar,
National Lead, New York Air Brake and Read
ing giving the best response, with Reading
showing the OnlV loss at the close Foreign
houses again sold stocks in the local market,
their operations accentuating foreign exchange
conditions that lead to heavy gold export en-
gagements.
Sterling exchange at this centre strong,
while Paris and Berlin rates moved against
London, the South African gold offered in the
open British market being secured by Austria.
Money was easy here, and bank conditions, as
reflected in Saturdays Clearing House state
ment, suggested relatively low quotations for
accommo odatons throughout the current week,
with the outlook favoring further exports OF
gold particularly in the event of adequate
supply of bars at the local Assay Office For
eign exchange still is under the level at which
gold may be shipped to Paris at much of a
profit, but in view of the scarcity of exchange
bills and the active demand for remittance it is
not unlikely that rates viii move to the range
inducing heavy exports in the latter FORM as
apparently there is no immediate chance Of an
expansion in outward movement of ner-
chandise. The demand for remittance yester-
day was so urgent that small profit was figured
out on shipments of the coin. the advance in
sight sterling here and the sharp break in the
Paris cheque on London accounting for the en-
gagements made. Exports of domestic products
and general merchandise last month, the de-
tailed ffgures of which at hand, were
lighter than in any corresponding month since
1904 and exceeded imports by only $299O151,
the smallest excess for the month, with one ex-
ception, ever recorded, while imports were heav-
ier than in any preceding April, outside of 1907
showing a gain 1908 TO the value of S34-
77S241. For the ten months of the fiscal year
imports have increased S53 055,717 against a de-
crease IN exports of S209,49S,5 ,592 with an excess
OF exports over imports in that period of $751;
O47,I43, as compared with an excess in the pre-
ceding ten months of S631, ,6O1452.
The excess of exports which from July has |
been lighter than in any corresponding period |
except 1906, has been Offset by interest pay |
Inents due on American securities held abroad |
by the differentiation of imports, by travellers |
credits and other factors that enter the calcu- |
lation, while we have been compelled to ship |
gold to the net amount of So. .63S 1928 since the
first of the fiscal period, against net imports in |
the year before Of $104536,3s3 and ss6641152 in !
1907. To our exports of merchandise may be |
added $10,139,8 sos silver, which is cassed as a |
commodity. Our total foreign trade in the last |
ten months has amounted to S2.495, 5,543O4a
against $2,649, ,9s5924 in the ten months preced-
ing, a loss Of si56,442S75. The gain in imports |
is reflected in heavier federal income. which so
far in the current month has exceeded that in !