New-York tribune., 1909-03-29
FINANCIAL MARKETS
LIGHT DAYS IN STOCKS.
Holders of Securities Find No Rea-
son for Liquidation-Money
and Gold M0UcmentS.

moving within narrow price fluctuations Win
the general tendency in recent weeks TOWARD
improvement. In last weeks operations httie
public interest was reported, the general uau-
ing representing chiefly the transactions OF the
professional element, which was not dlsposed 10
make extensive commitments on either side OF
tbe sneculafiye account though sentiment was
conservatively bullish. a reflection Of which was
found in the quick recoveries from declines. in
the absence of selling pressure and in the per-
sistent firmness Of the metal issues in the face
of adverse trade conditions. especially in Sat
,rday's market 1t is quite evident that the
holders of the steel and copper shares believe
current conditions in the metal Industry VIII
pass away with the settlement OF the tarlh
question, and that in the future the securities
Of the steel. and copper concerns will move 10
a higher level otherwise United States Steel
common and Amalgamated Copper would not be
selling at present figures Amalgalnated COP
per keeps above 20, though it is only per
cent stock II the issue on its prospects were
not worth this price 1t would not be so conf
IDENTIFY held by speculators and investors. While
the same thing may be said of United States
Steel common. which may be bought TO re-
turn more than per cent. Wall Street appar-
ently does not believe that trade developments
Will require reduction passing Of the dfvi-
dend on this stock The United States Steel
Corporation last year, when the steel business
even at high prices showed a tremendous con-
traction in earnings, made a little more than
rer cent on its s50S 600 900 of common stock out
standing. and though in the first half of the cur
rent year results will be disappointing there is
good reason TO look forward to a large eXpan-
sion in the demand for steel products in the
second half of 1909 and a normal trade in the
succeeding year. There is. of course. the pos
sfbilitv that the directors of the corporation may
decide to suspend dividends on the common for
a brief period but the course of prices on the
exchange does not foreshadow such action The
metal trade is in worse condition than any other
industry and the fact that the metal shares
maintain a strong market position is one of the
most noteworthy features Of the situation, and
one that encourages much confidence over the
future OF business affairs.
Current prices in the local stock market are
not far under the best Of the year, made in the
first week in January. while since that time
fluctuations the greater number of days have
been within narrow limits. the greatest decline
running from January TO February g. in the
course of which the leading railroad shares went
low 1880 and the leading industrials as
low as 1891, against 1873 for the railroads and
s4S1 for the industrials at the close Saturday.
Stocks are In strong hands, but there is dis
position on the part Of the public to buy from
the owners at the present. relatively high quo
tation, and a consequence there appears no
immediate chance of a extended rise from the
prevailing level. Though money is easy and
the carrying charge is small. commission houses
receive no response to buy. except on invest
ment account, purchases for the latter showing
some improvement, especially in the bond de-
partment. In last weeks market there
increase in the demand for railway mortgage
issues and for municipal bonds the movement
In this department of the market naturally being
a most encouraging development. There is
nothing in the outlook that suggests investment
liquidation. Holders Of we'll protected specua-
tive accounts find in easy money a legitimate
argument for maintaining their position, while
in the general technical position of the mar
ket the latter for decline that
would materially weaken their margins. While
there is no encouragement 10 increase ones ac-
counts at current advanced prices. there is no
speculative fundamental factor working in
favor of active operations for the decline. and
from current indications the market Will move
in its present rut until something happens to
attract aggressive speculation. on side the
other. Special factors affecting special
stocks say FOR instance, the Interborough- Met
ropolitan shares which last week heavily
depressed forced liquidation and manipula-
tion for lower prices, and Alton common, which
was advanced unwieldy short interest.
Money market rates show indifference to gold
exports owing to the light demand for funds for
mercantile and Stock Exchange purposes. The
outgo of the yellow metal to date has been off
set by receipts of currency from the interior by
new gold and by excess government payments,
but il IS conceivable that further heavy ship
Tnents may cause a stiffenng in rates for funds
though until the actual demand for accommoda-
tion in this country increases high quotations
for loans appear out of the question While
business conditions throughout the nation are
sound, as far as underlying factors are con-
cerned. and gradual improvement is noted in
the volume of mercantile transactions in many
lines, merchants and manufacturers not
active borrowers at this centre. Their mme-
diate needs are financed at home, their commit
ments for the future being too small 10 impose
a burden their own banks. which not only are
not withdrawing their balances at New York
as is customary at this period of the year. but
sending surplus funds to this city in round
amounts. The price of money abroad is higher
than IL is here though discounts at London |
were lower last week, and until there is a de-
cided change in this respect and exports Of
domestic products show increasing tendency |
this market may be subjected to further calls
from London for gold, of which there is a large |
and growing supply. in the United States. For
eign houses bought stocks in this market to a |
small extent last week. though sales outnum- |
bered purchases the latter furnishing additional
reason for strength in sterling exchange which |
ruled at point that encouraged shipments of !
gold TO the amount OF $93JO0C0 The monetary |
situation here doubtless is nearing the end of |
the current peTlou OI acute uulnesS. ana II Is |
generally believed in banking circles that pre-
vailing quotations the lowest that will be |
recorded in 1909.
Government revenues improving, and while :
daily Treasury statements continue to show an !
excess of expenditures receipts the deficit !
reported is smaller than at this time d year ago, |
amounting from the first of the month to $3,319,- /
;I54 against SS.249.420 in the corresponding pc
Rod i'm 1908. Customs receipts so far in March /
have been more than $5000OO0 heavier than |
thev were last year, while internal revenue and !
items also have produced better |
results and furnish especial announcement in :