New-York tribune., 1909-03-03
FINANCIAL AFFAIRS
STOCK VALUES FIRM.
Business Light and Poorly Dis
tributed- Sterling Rates Strong.

Activity on the Stock Exchange was confined
to a few shares. in which the volume of business
was moderately heavy movement OF values
that showed fair strength in the greater part
of the dav Though the general market exhi5-
tied much irregularity. with periods OF heaNl-
ness final quotations & rule presented sinaI
gains as compared with Mondays closing, the
Improvement representing little beyond traders
transactions while in the leading active issues
the character OF the business was similar. eN-
cept in the Hartman stocks, the metal shares.
AtchsOn and Brooklyn Rapid Transit, in which
there were modest operations for outside ac-
count Commission house trading. however. was
extremely limited in comparison with the dealings
by the professional element. the latter generally
maintaining a position on the long side. doubt
less in the hope of the development Of an ag
gressive buying movement In celebration OF the
Taft inauguration. The aggressive buying that
followed last weeks weakness has subsided. for
the good reason that it was based upon an
everextended short interest, which no longer IS
in existence. and If mora substantial sort OF
buying does not develop it is not likely that the
professional traders viii work for any length OF
time the bull side of speculation. especially
as in current conditions affecting securities there
is nothing calculated TO stimulate rising prices
from the prevailing quotation level, which. In
srdte OF the recent declines, more than measures
the improvement that has taken place in bust
ness and money affairs and any improvement
that may develop in the near future. The high
est average price of the railroad stocks for the
year and for the twelve months preceding was
made on January at 1908 and for the indus
trials on January at SG.G. At present the
average for the railroads is about III and for
the industrials about 81. The market closed
dull The announced cut in the wages Of the
Lackawanna Steel Company employees failed TO
have adverse effect on stock market sentl-
ment. doubtless because the Street recognized
the action as in line with natural law which
has been making itself felt in recent weeks in
the commodity markets.
The Pennsylvania Railroad practised severe
economies in the last year without affecting its
operating efficiency, while 1t earned nearly
per cent its large capital stock, against 1867
per cent in the preceding year. Though the
heavy reduction in operating costs did not
weaken the physical position Of the property. it
is conceivable that a prolonged period Of ex-
cessive cutting in operating expenses would Sc
riously interfere with a safe and economical
handling OF traffic, and it therefore is encour-
aging 10 know, as pointed out in this column
yesterday, that the time has now arrived when
the management Of the road go ahead with
the confidence that the future of general bust
ness in this country warrants the expectation
OF a gradual expansion in gross transportation
receipts and let-up in the policy Of rigid con-
traction expenditure account In the greater
number of cases railroads reporting for January
show gains in gross income as compared with
the corresponding month year ago, and more
liberal tendency on the part OF the companies
in the matter of expenditures though the re-
ports do not reveal anything showing a de-
parture from conservative methods. Railroad
manage believe that the improvement already
recorded in actual business will continue and
reach large proportions in the second half OF
the year when uncertainty over the tariff doubt
less no longer viii be factor repressing growth
in general trade, and as a consequence the
chances favor increased orders at remote
period for new rolling stock rails and struct-
ural materials, contracts for which in the last
twelve months have been of the most limited
character. SO far the lower prices for steel
have not been productive of large demands from
consumers. while the same thing may be said
of the reduction in the price of copper. though
the general tone Of both markets is better and
suggests a more active response to the new
conditions in the near future.
A slightly frmer tendency is noted in some
departments OF the local money market. but the
large offerings of out-of-town funds and the !
light demands from mercantile borrowers pre-
clude the possibility Of anything approaching a /
stiff loan market just now. Nevertheless. the I
time must come when the tendency viii be in /
the direction of higher level There Will be /
an active mercantile inquiry for accommodation /
before the year is far advanced in its second /
fiscal half period while befora that time there ]
will be further government financing. additional /
demands from the railroads for money on /
securities issues and possibly gold exports TO
London. though current International monetary /
conditions do not encourage the idea OF an out
ward movement Of the metal in the near future !
The Bank Of England appears satisfied with the |
amount Of gold ii secures weekly from the South |
African offerings and from shipments from the {
Continent, while the Bank of France has ceased |
to be competitor in the British market South |
American obligations London account are |
being sstted by exports OF gold from New York |
and il is possible that the movement will he |
augmented In connection with the payments on |
the Argentine loan. which has been oversub-
scribed at this centre. Sterling exchange is firm
though well under the iAvel at which gold could |