New-York tribune., 1909-06-26
FINANCIAL AFFAIRS
STOCKS CLOSE FIRM.
Early Losses FolIo5ced by Better
Prices Gold Exports to Europe.

Moderately heavy selling orders for local and
foreign account were reported in the stock mar
Eet in the early operations. and in the absence
Of important support the general list moved tow
ard a lower level. with losses running beyond
point in many of the prominent issues. The
prospects Of the adoption of the proposed cor
roration tax by the Senate were used WIN some
effect as an argument for selling stocks. ana,
while the movement failed to bring out invest
r1ent holdings. il served to check new spe'uia-
tive buying and created the impression III ST.
circles that the enactment Of the measure would
ce,,ea q material transfer Of investment money
from stocks TO bonds-a development that II not
at all improbable, the tax IS 70 be lrnp"seu
after the deduction Of interest on straight NOR
gage securities. There are not many factors III
rhe current situation in the outlook Tot uhe
Immediate future that warrant bear activity III
stocks and as a consequence traders arc quick
70 take advantage Of anything that SHOWS ti'3
slightest indication Of being a trouble preedeT-
The selling Yesterday ran It's course soon after
the completion Of the London transactions the
greater number OF shares in the rest of the day
exhibiting frmer tendency under the influence
Of covering Of shorts and buying at the 10"
roinrs bv substantial interests in several OF 'hS
leading issues notably Reading which ended al
a net gain Of ia. Strength was the most pro
,7o,Ir5ced in The stocks that lend themselves cas-
iIv to manipulation. as, for instance. INTERIOR
orgh- Metropolitan preferred and Readlhg' inc
advance in the first named being accompanied
1y-
v-av would be reorganized under the super
vision Of 7 p Morgan & Co. and that in the
future this firm would handle the fnancial re-
ouirenents of the entire system me move
rnant in Third Avenue stock reflected covering
~ shorts following the announcement OF the
coronar,,'s n1an for reha bitation, providing for
2 decrease in future interest charges and @h
assessment on the stock OF s25 share Union
Pacific common and preferred failed 10 develop
strength with the general list in the afternoon
+har
movement evidently on selling based on dlsap-
rointrnent over the failure Of the recent advance
to bring forth favorable news developments
Gold bars to the amount Of 100000 were en-
gagged Yesterday for shipment 70 Europe Ster-
ling exchange rates are at a level that permits
Of exports of the metal in the form Of bars. ana
II would NOT REQUIRE much of an advance 10 en-
courage an outward movement Of coin. not"lth-
standing the ease of discounts abroad ana tie
advance in the Paris cheque on LONDON "hlch
is unusually high for this period of the year. due
in part to the French speculative operations IN
+he British securities market. The local banks
are in a position to send gold TO Europe WIN
out adva ncing their money rates owing 10 the
large receipts Of currency from the INTERIOR but
II is not considered probable that shipments OF
the metal will reach heavy proportions on ac-
count Of the growing disposition on the part OF
foreign bankers to leave their balances here for
use in the local loan market. According TO the
I,noyrn movement of money IN the current week.
the banks at this centre have gained $7.144OOO
in cash and unless there has been a substantial
expansion in loans to-day's statement OF the
Clearing House institutions ought TO show
material addition 70 their reserves above legal
renujrenents which in last weeks exhibit stood
az a total of S19,2S6, 700. The money market in
the last few days has presented no indications
of an active inquiry for accommodation. so far
as the mercantile demand is concerned. In the
call department a moderate increase was re-
ported in THURSDAYS operations a conse-
0uence of bull activity in stocks. followed yes
terday by further liquidation in speculative
loans the latter suggesting another decrease in
the loan item in the actual showing in the bank
return as of last night. a week ago loans de-
creased more than s35.600,OOO. while cash in
creased more than 100000
Railroad earnings continue TO show encourag
ing gains compared with corresp ponding
periods in 1908, and from current indications
Improvement in the second half OF the year will
be more marked in all parts of the country. with
gross receipts comparing favorably with those of
record breaking periods in the past, especially
If the crops reach the heavy yield fore
shadowed by conditions in the agricultural sec
tions of the United States. The Atchson. To-
peka &, Santa Fe in the month of May, the
earnings of which were received yesterday.
showed a gain in gross OF s1.334, ,s59, as COM
pared with the time last year, while in
net there was an increase OF S669.475. the latter
being large enough to suggest the proba bity of
the return Of the common stock TO a per cent
basis at remote period. Southern Railway
earnings gaining at rate that creates the
impression that the preferred stock will be re-
stored to the dividend column at an earlier
period than recently thought probab bic. and the
same thing may be said of Missouri Pacific
stock, which in recent months has been accu-
mulated by strong class OF buyers. Earnings
of the last named company for the third week in
I,aue M 2 cai 0f oxrer