New-York tribune., 1909-01-15
FINANCIAL AFFAIRS
STOCK VALUES RALLY.
Most Stocks Up on Couer7ng of
Shorts-Bank Of England
Rate Increased.

The general stock market was Influenced in
the best part Of the day by covering operations
that carried prices from to II points above
the opentpS quotations in the prominent shares,
with last figures somewhat under the highest.
In view Of the recent activity of the bear ele-
rnent the Street hoped for a much sharper rally
on covering of shorts alone. while II looked tor-
ward the development of public interest on
any Indication of strength, but commission
houses had few orders for outside account, eX-
cept on the selling side, though liquidation OF
this character unimportant. On the bulge
in the leading shares stock was supplied in some
volume especially in Union Pacific, St Paul and
Reading The declaration of the regular divl-
dends bv the ST. Paul and Baltimore & Ohio
companies served 70 create more bulllsh reel
ing in speculative circles but the chief reason
for the generally better tone was found entlreiy
IN technical market conditions. which were IN
tensfhed by a brief period of weakness in the
morning operations The local traction shares
and the metal issues among the few Sc
curities that closed at net losses, their declines.
however being confined to small fractions. Wis
consin Central preferred again enjoyed sharp
advance the movement being helped by the an
nouncement that an option held on the majority
Of the stock Of the company had been exercised
bv interests who doubtless will now OFFER con
troI of the road to the highest bidder. presum-
ably the Canadian Pacific. Wabash preferred
was heavy from lack Of support and steel com
mon also Jagged behind the general list, the IN
terests who have been protecting the latter IS
being
deal of stock This security in recent markets
has had the faculty Of being strong when other
stocks declined and weak when other stocks ad-
vanced As a 2 per cent investment without any
Immediate prospects of increase in It's diNi-
dend rate, its present market quoIati"H "'u'u
seem fair valuation.
The Bank of England has advanced ITS mini
mum rate of discount from 21b to per cent,
though in its weekly return it shows material
increase in its percentage of reserve to liability
l.
action, hy- the governors of the institution in
pIacing the rate on higher level is found IN the
Withdrawals of gold from the bank and from t'e
open market and an apparent determination on
the part of the bank interests to become COM
retitor with the Bank Of France for the South
African gold that is available in the open Lon
don market every Monday; also In efforts by me
British concern TO attract the precious metal
from the United States Recent shipments OF
gold from New York have been for Paris ac
count but with the higher money rates at Lon
don and the strength of the sterling market here
it is quite likely direct shipments will be made
from this centre to the British capital Money
commands q better price abroad than II does IN
This country and this fact, together with foreign
selling of American securities, naturally enCour-
ages an outward movement Of the metal from
this port the operation. however. in no way
being a menace TO the local monetary or stock
market situation. Currency is coming to this
point in volume from the interior, while the
Ok'Sieh'ASiiF'
federal Treasury and according to current indi
ca tons rates for funds. despite exports OF gold
will continue to rule at an easy level for weeks
TO come unless there should be an active in
crease in the mercantile demand for accommo-
dation in the near future. Merchants are well
supplied with funds for present requirements,
and they not making commitments Tor dlS-
tant periods pending the uncertainty over the
character Of the changes that may be made in
the tariff at an expected special session or
Congress following the Inauguration of MI Taft
as President. Treasury expenditures continue 10
exceed receipts the excess since tine issuance
of the recent Panama Canal bonds amounting TO
about one-haIf OF that issue and suggesting the
probability Of further offerings OF bonds of this
character. to say nothing of additional calls upon
depository banks for government funds held by
them.
Announcement by the directors of the Ameri-
can Sugar Refining Company that IL is not their
policy at this time TO increase the dividend on
the common stock is in line with the conserva-
tive management that always has marked the
progress of the big sugar concern The stock has
made an euviable record a solid investment.
and as il has paid per cent for years in good
times and in bad times there be reason
for dissatisfaction the part of the stockhold-
ers. especially at this particular period, when
conditions in trade call for the strengthening Of
cash resources rather than extra disbursements
10 the owners of securities. In 1907 the Ameri-
can Sugar Refining Company showed net earn
ings equal 20 more than u per cent on its COM
mon stock. and it is understood that the figures
for 1908 Will approach that record hut the dI-
rectors acted wisely in refusing spectators.
demands for All increased distribution on the
issue. In view OF the business depression of tho
last twelve months the railroad and Industrial