New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-01-22
FINANCIAL AFFAIRS
SHORTS COVER CONTRACTS
General Market Up-MOney Easy
and TN Light Demand.


market differed in no way from that of the pre-
ceding days Of the week, operations represent
ing nothing beyond the buying and selling OF
board room spectators and some business Tor
the account of commission houses that handle
the transactions of the so-called professional
element. In the early dealings price movements
showed great irregularity. while in the afternoon
the greater number Of issues advanced TO
higher level under the influence of active cover
ing in United States Steel common, which car
ried the quotation Of this issue a point above
the closing of the preceding day The gen
eral response, however, to the strength in United
States Steel was not in proportion to the ef-
forts exerted TO place the issue on higher
plane the buying power being noticeably weak
on the upturn, with no indication Of the develop
Inent Of a public interest in the market
scattered short interest covered in the day.
and at the close values were from 4 to 112 per
cent in advance Of Wednesdays final figures,
the chief gains being made by the metal shares.
in which the short interest had become over
extended, Distillers Securities, American, Hide
and Leather preferred, the Erie shares, PAN
handle" Rock Island preferred and the HARM
man issues Union Pacific ending at net ad-
vance of ia The fact that greater activity
developed in Steel common induced certain
amount of confidence in bull circles in the theory
that the movement marked the beginning OF a
new swing for better prices, though there was
little in the trading that suggested the market
had been taken in hand b. forces competent to
promote an active bull campaign Advancing
values in the afternoon were accompanied by
rlnors that the tariff steel would not be
materially changed, and that the upstate Public
Service Commission had decided to grant the
application of the Erie 10 Issue 600 bonds.
These rumors were based on hopes rather than
on news developments.
The highest prices in the stock market In the
current year were recorded on January z, when
the average for the leading active railroad shares
was 1908 and for the industrials S623- Since
that time quotations have moved in a most
irregular manner, within narrow limits, how
ever, with the general tendency from the hrst
of the year to January Is in the direction OF
lower figures though the decline amounted to
less than three points on the average, while in
the last eight days much Of the loss has been
recovered. prices last night showing only frac-
tional difference from the best. Contrary to ex-
pectation. there has been 10 aggressive opera
lions for higher quotations, the hoped for Jan
uary rise dying in its infancy. And at the
moment there is no indication that an i'm
portant bull campaign Will develop from the
prevailing level of values, though it is not un-
likely further operations for the rise will be
reported in some of the second grade shares.
which Just now appear to be the chief favOrites
with the professional element. Stocks as a
rule are too high to encourage active public
support. The substantial Wall Street interests
still the heaviest holders of securities, but
they are not willing to distribute their posses
sons at present prices, doubtless banking on d
more advanced level later in the season. II
they attempted to sell now they would hnd no
market for their offerings, and as a consequence
they are endeavoring TO maintain prices on a
stable basis in the expectation of eventually
being able to attract active demand from
the general public. The market TO great ex-
tent is deadlocked and it is interesting to recall
the fact that in the past markets of this char
acter have been followed by q radical change in
the movement of values one side or the other.
Though the Bank of England made no change
in its minimum rate of discount yesterday the
position OF the institution disclosed by the
weekly return was weaker than at this time in
the last three years, the proportion of reserve
TO liability standing at 1897. against eight
year average of 1850. The financing OF the
Russian loan is reflected in the changes from
week ago, the only item to show increase
being public deposits. representing receipts from
savings banks, and therefore not encouraging
enthusiasm over an early revival in English in
dustrial centres Paris exchange on London
yesterday declined. and the probability OF an
active release of gold by the Bank OF France
after the Russian loan is out of the way was
not indicated. Foreign exchange at this point
remains at the gold export level. and If il were
not for the great scarcity of gold bars at the
local Assay Office heavy shipments Of the metal
doubtless would be made