New-York tribune., 1909-07-31
FINANCIAL MARKETS
4CTIVE DAY IN STOCKS.
Union Pacific and Steel Common at
Ne7r High LeUels-Sterling
Exchange LO7cer.

Stocks were strong and active throughout the
five hours of trading. new high prices being re-
corded by many issues, with the general aver
age al the close at the best level or the year
Commission houses reported a larger business
than on anv preceding day in several weeks es-
pecially in Reading United States Steel. Ameri-
can Smelters Atchison and Union Paclhc' Whlle
the ira ding element exhibited unusual acuVitF
in all the prominent shares, dealing on Do'h
sides of the account though generally working
for better quotations. The agreement on the
tariff mea sure, the passage of which Is expected
to be followed by a great industrial revival en-
couraging reports from the agricultural sectlohS
of the country and extreme ease in the money
market strengthened confidence in speculative
quarters in the belief that the public would
come into Wall Street. despite the high levels
prevailing and on this theory no effort was
spared by the philanthropic bulls 10 spread the
idea that huge profits were TO be made on any
security listed Reading pushed up more
than points 10 a price that represented in
vestrnent return Of about 211 per cent, American
SmeIters also gained more than points while
maximum advances of from to 11z per cent
were common, including Union Pacific and
United States Steel, both of which sold higher
than at any other time in their history. The
entire industrial list wes strong and in better
demand than recently reported, evidence being
presented IN the dealings Of purchases by in =
terests who were active sellers of the railroad
issues and who believed that the most attractive
opportunities for profit were 10 be found In the
shares Of Industrial corporations. The railroad
equipment stocks and National Lead were
among the securities taken by this class OF buy
ers The general market closed strong, in spite
of heavy realizing sales with Atchison one Of
the features IL the last hour, buying of the
issue being based on the company's excellent
report Of earnings for the month of June Total
sales were slightly in excess Of 100000 shares
and nearly double the total Of the preceding
day.
Current trading in stocks reflects the presence
in the market Of substantial interests who are
working TO bring about a materially higher level
of prices. but so far their operations have not
attracted an active public inquiry for securities,
though the outside demand yesterday was heav-
Ter than reported in several weeks. Quotations
are at the highest general average of any time
since the bull market of 1906. while many issues
are selling at level never before reached and
on a basis that represents a relatively small re-
turn purchases made for investment. Little
investment buying is reported. Transactions
are made up almost entirely CT speculative op-
erations conducted upon borrowed money the
prevailing low rates for loan accommodation
making the cost of carrying stocks extremely
light and supplying a bull lever that doubtless
will continue TO give good account of itself
until legitimate demands for funds in connec-
tior with the financing Of the crops and the ex-
pected heavy expansion in business following
the final passage of the tariff bill begin TO
ert enough pressure bank holdings TO cause
loan quotations advance to sitter figures
According TO the known movement OF money in
the week the local banks have gained from the
interior 81. 2.06s.000. compared with gain week
ago of s4265000, and on all operations they have
gained s2,701.000. against loss last week Of
about 81 500 900, the latter being due to the
heavy exports OF gold to South America. The
currency movement this week shows for the first
time the effect of a moro active demand at the
West and South for funds. and IT appears likely
that the outgo from this centre Will grow IN
volume in the rest Of the summer and reach
large proportions In the early fall An encour-
aging feature Of the situation is the steady de-
cline in sterling exchange rates. due to pur-
chases of American securities and an increase in
grain shipments, the latter in the present week
showing a gain OF more than G00.0 600 bushels
over a week ago.