New-York tribune., 1909-07-20
FINANCIAL MARKETS
NEU STOCK RECORDS.
Prices Strong Until Late Trading
Money Rates Easy.

Stock market prices moved in irregular
manner in the day, with unimportant changes
in the larger number of issues at the close. In
the early operations advances were common
throughout the list, and evidence Of active ma
nipulatlon on the part of powerful speculative
interests was not wanting. especially in Union
Pacific. United States Steel, Reading and tho
Hill shares, though in the last named and in St
Paul there was more genuine buying than
ported in any department of the market. New
high records were made by Atchison and Union
Pacific while in Baltimore & Ohio, American
Car and Foundry. Rock Island and St. Louis &
San Francisco second preferred prices advanced
10 the best figures since the panic of 1907. The
Rock Island and Frisco shares were bought by
a good class Of traders. The remarkable i'm
provement in the affairs of the Rock Island
company in the last six months and the active
interest taken in the company by OF the
leading banking houses in the Street begin
ming TO be reflected in the price Of the company's
securities. which are among the few that have
not yet shown in their market quotation the
actual gain in their intrinsic value. Advances
in the early dealings attracted a moderately
heavy realizing movement in the afternoon, and
as a consequence the general list closed heavy
with Union Pacific Southern Pacific, Reading
Amalgamated Copper and the Steel shares under
the final figures Of Saturdays market. Ameri-
can Car and Foundry, American Cotton OIL
Northern Pacific were among the strong feat
ures in the day that closed at net gains in spite
Of heavy realizing in the late tfading. Active
market interests apparently were quite willing
to help the decline in the afternoon the theory
Of creating a larger weak short account Short
accounts make bull markets.
Conditions at the moment in the stock market
favor the advocates of higher prices. Conditions
outside the stock market warrant confidence
among investors in the actual worth OF their
curity possessions, and suggest the probability
Of the development of factors that will add in
trinsic value to the shares of American railroad
and industrial issues. Conditions in the specu-
lative situation, including the position OF the
money market though favoring the interests
that are actively engaged in a campaign for bet
ter quotations, do not warrant the accumulation
Of accounts small margins at the prevailing
level of prices, and in view of the fact that the
larger number Of stocks selling at new high
record figures the ordinary operator on the Stock
Exchange ought to exercise extreme caution in
commitments based the idea that the bull
movement will run Indefinitely. The power of
manipulation doubtless will bring about further
advances and conditions favoring high prices are
based entirely this manipulation. which pre-
sents a splendid example of the so-called brute
force Of the Street in markets in which the pub
lie is not a factor Stocks moving to high
levels. and in yesterdays operations several is
sold az the best quotations ever recorded,
without the accompaniment Of an active public
buying movement. The most optimistic bulls be-
lieve that the public will be crazy after
stocks. It is TO be hoped that the public will
keep its money. Most stocks good sale
all rallies The high class industrial securities
may still be bought to yield a fair investment
return, but the same thing cannot be said of the
railway shares.
Money rates were easy yesterday. and foreign
exchange was firm, while Paris, exchange on
London declined. the latter movement being OF
especial interest owing to the fact that in the
last few weeks the tendency of the Paris cheque
has been in favor of the British capital. The ex-
treme ease OF money at London may result in
the development of exchange situation per-
mitting shipments of gold, not only from the
latters centre to Paris but from New York to
france, by the o-called triangular operation,
while il is quite probable that further material
exports Of the metal will be made from the
United States TO South America in settlement
OF London obligations at Buenos Ayres. Cur
rent money market conditions here and the alb
sehce OF an active supply of commercial ex-
change, together with the workings of our poor
currency system, encourage local shipments of
solo' Dut the time evidently is not far distant
when the demand for money at New York Cor
interior account will be large enough TO bring
about conditions that will weaken the sterling
market and compel heavy liquidation of Stock
Exchange accounts carried on borrowed funds