New-York tribune., 1909-07-26
FINANCIAL MARKETS
STOCKS At HIGH LEFELS.
Years Best Prices Made Last Ueek
-nOnetau Conditions.


Union Pacific which touched 199ia and ended
at Il level that still represented an investment
return Of a fraction more than per cent. IHe
Union Pacific company. by its sale OF southern
Pacific convertbles and Atchison preferred mas
added a large amount of money to its available
cash resources and in some quarters OF the
Street the belief that the road soon VIII increase
its dividend is seriously entertained. out no
Endorsement OF the idea is given in official cir
cIes though there is some reason TO believe that
the directors have in view operations that event
ualy will strengthen the position of the holderS
of the stock The company is earning on us
railroad business far in excess or the ~ PEI
cent dividend requirements. In addltloh II -
receiving from its income on securities owned
a sum equal 10 upward of : per cent on It's out out
standing capital common stock. and II is rea-
sonable 20 assume that at no remote PeI4ou
something will be done by when hoiders oi
the issue will have their views confirmed Ihat
their investment in the company is worth every
cent and more of a market value of 200 Union
Pacific is one of the few shares that can De
bought TO WELD ; per cent and al lis current
market price the stock IS relatively cheaper IMAM
other issues the dividend upon which Is n"
better secured but such a consideration should
moi lead the venturesonle operator on margin
TO buy the stock at the prevailing level as any
decline that may develop in the course OF the
next few months viii include Union Pacific
irrespective of the intrinsic worth of the secu-
ritv. southern Pacific doubtless will have its
dividend increased before a larger rate Is de-
clared upon Union Pacific, but = higher rate
for the first named stock does not appear prop
able in the immediate future if the sale by the
Union Pacific Of its Southern Pacific conVeru-
HE bonds NAV be taken as a guide to the in
tentions of the Hartman management IN the
matter of larger disbursements Union Paclhc
sold its Southern Pacific COnvertlbleS on baslS
under the present market price of the stock.
which would not have been done If there was
any probability that within a short time the
dividend on Southern Pacific would be advanced
TO a better level.
Transac actions in the current market reflect
willingness on the part Of substantial holders OF
securities to convert paper profits into cash.
and every effort is being made to bring about a
more attractive selling level before the develop
ment of conditions favorable to bear activity
IN the general list. The persistent strength in
quotations, however. does not indicate strong
technical position. There more weak ac-
counts in the market to-day than at any time
in the last fortnight, and with each advance
this situation becomes more susceptible 10 al
taclzs from nlanipulators for the decline, though
the bear element is not yet powerful enough
10 force heavy liquidation without the assistance
OF some outside factor, as, for instance, a sharp
advance in money rates. which may be ex-
uected later in the season Conditions govern
ing actual values do not suggest sales OF in
vestment holdings. but speculative conditions
are moving along lines that eventually must be
accompanied by falling prices. especially among
the fancy priced railway issues which have IN
everything favorab bic that has happened IN re-
cent months and every encouraging develop
l3ent that may be looked for in the weeks 10
come Many large interests are selling their
speculative holdings of railroad stocks ana are
buying the fndustrials on all reactions that is.
the industrials that have not, like United States
Steel common advanced 10 inflated levels. The
Street continues to grow hot and cold over the
chances Of an increase this week in the d1Vi-
dend on Steel common, with the majority opin-
"a .ha+ rba rafa z1-il he d.
vanced to a 3 per cent annual basis. 1t is diff
fc11lt however TO reconcile this theory 10 the
conservatism exercised by the management OF
the Steel Corporation in the past and though
the earnings of the concern are increasing and
the future appears uncommOnly promising in the
matter Of new business il hardly seems prob
able that the directors will increase the divi-
derd so soon after period OF extreme depres-
sion, which at one time actually foreshadoWed
. reduction suspension Of the dividend at
the very time when spectators insist higher
rate should be established.
Money rates continue to rule at easy level
and no immediate change in the direction of
higher quotations is anticipated in banking cir
cles Conditions governing the money market,
nevertheless do not encourage the idea that the
present ease will run on indefinitely. Indeed, the
indications point TO high rates for accommoda-
ton in the autumn. and a much firmer market
than now reported before the end Of the sum-
mer notwithstanding the assertions made in
speculative circles that the market will rule as
easy in the course of the next few months As IT
did in the same time a year ago, when interior
banks were able to finance home requirements
without much assistance from New York, and
when the general demand for funds was eX-
tremelv light Bank loans throughout the coun-
try not including state banks and trust COM
panies show according to the last compilation
Of the Controller Of the Currency. increase as
compared with a year ago of $42o,29I,9S4, against
an increase in the same time of only $36S9I.021
in cash. exclusive of national bank notes, which
have increased $27 64S 800. In 1908 net gold ex-
ports from this country amounted 10 more than
$4,000 O00 against the countrys gold production
Of S9s. 600 600 while far in the current year
have shipped net upward Of $7ooo0.o0O gold
without the prospects of being able to bring in
large sums from Europe in the fall. in spite OF
an expected increase in our shipments Of food
products and cotton. Exchange is being sold
short in expectation of higher rates three months
from now, but the covering Of contracts at that
time viii serve to maintain sterling quotations
at a level under the gold importing point, though
in the event Of money stringency at this centre
the yellow metal would he brought in TO take
advantage Of the high rates for loans. We are
in debt u Europe. and London is financing its
obligations in South America at the expense Of
the local market. as reflected in the total gold
shiDnaents to Buenos Ayres from New York Of
more than $4,000 600 since January l. of which
last weeks exports supplied SS000,00O Imports
are likely to continue to increase for several
months to come. and while Europe doubtless
will be compelled to import grain and other COM
,,odities from the United States at high prices.
il is quite certain the movement Will be restrict
cd owing TO high costs here and the promising
outlook for grain crops in other grain growing
countries our adverse foreign commerce situa-
ton and the evidence of unrest among the labor
element in the steel trade are the only important
unfavorable factors in the current situation.
Interior banks are beginning to supply money
in larger amounts to customers whose needs in