New-York tribune., 1909-05-16
FINANCIAL AFFAIRS
LIGHT STOCK TRADING.
Most of the Leading Shares Shoe
Small Losses Banks Gain an
Cash and ReSerUe.

Stock market values were irregular through
out the two hours of trading, with final changes
showing unimp port3nt differences from the clos
ing Of the preceding day. small net losses being
recorded in the greater number of active issues.
Traders appeared somewhat at sea regarding
the significance OF the slump in the early after
operations Friday and the subsequent re-
covery, their transactions being confined 10
quick turns both sides OF the market. with
the prevailing dealings however, for short &C
count Substantial interests not active in
the speculation, which showed material falling
off in volume compared with the activity IN
the preceding days Of the week. the metal
shares, Consolidated Gas, Reading, Rock Island
and Union Pacific supplying the chief part of
the total Of 201,3S5 shares recorded. Erie on
small transactions was weak, selling evidently
being based upon the rumor that the Erie COM
pany contemplated the sale Of a block Of con-
vertibIe bonds prior to the issuance Of the
securities authorized by the Public Service Com
mission, the inference arising that the com
pany's financial needs are heavier than recently
represented. AS there is official authority
for this rumor and nothing IN the known posi-
ton Of the company that suggests such action
II is hardly worth discussing There was some
selling Of the Rock Island shares Erie and
Southern Railway stocks by commission houses,
but as a rule the latter not important
factors in the market. Union Pacific the
frmest feature among the active shares. though
ii closed under its best, showing net gain Of
only Il Bank statement figures were better
in the actual showing Of Friday night cash
and reserve in both presenting substantial gains
Loans contracted and a result Of all changes
the reserve above legal requirements increased
$s.s90,475 to s14.617,925 against S646O7.250 at
this time last year and S11,472,675 in 1907. In
the average statement cash increased $7.24S,200,
and in the actual figures more than &11,00O,OOO
due in great part to heavy receipts from the in
terror. Trust company loans decreased to a small
extent, while cash also declined Liquidation of
speculative and banking loans responsible
for the decline in this item in bank and trust
companies exhibits.
Though stock market values in the last week
reached the highest level Of the year and more
than measured in their improvement the
various favorable factors in the industrial sit
uation. there was no disposition on the part Of
the speculative community q whole to adopt
the idea that the time had arrived for extreme
caution in operations for the long account AS
a matter Of fact, current quotations based upon
railway earnings and the condition Of general
business relatively higher than at any time
in recent years. and with prices at their present
range the development Of even passing adverse
features doubtless would create considerable
disturbance IN the market, especially as such a
tremendous amount OF speculative commit
ments being carried upon borrowed money
While money is easy at the moment 1t is not
unlikely rates Will move toward e hrmer range
in the near future, and II Is practically certain
that later in the season money Will rule at its
customary high level incident to the inquiry
for funds IN connection with the financing Of the
country's harvestS. In view Of the position of
the information exchange market and the rapid
expansion in bank loans better quotations for
money may be made before the end OF the fiscal
year, and tho fact that sitter rates will result
in calling OF loans ought to suggest great dis
elimination just now IN the purchase Of secur!-
ties on margin. One Of the biggest traders in
the bull market OF the last few months closed
out his long lines last week The more i'm
portant financial interests not buying in
volume. but the smaller professional traders and
the outsiders are enthusiastic bulls because
general conditions strengthening the in
trinsic worth of stocks and because, as is usual
In all bull markets. they believe there can be
no end to bull manipulation
In mercantile quarters conditions show note
worthy Improvement. Bank oleartngs grow
ing even at centres where speculation is not
factor in the compilation OF bank exchanges,
encouraging expansion being reported. And
railroad earnings also supply trustworthy evil
dence of the betterInent in general trade Every
thing appears 10 be moving toward stability In
business affairs and increased profits. but spec
ulation in stocks on the argument Of business
growth has been going On for so many months
that IL now apparently has entered the stage
where few wise are taking profits The
best buying is in the bond market There is an
active investment demand for mortgage issues.
both on the exchange and over the counter,
while there also Is speculative buying move
nlent under way IN various securities In which
there seems TO be reasonable chance for fur
ther enhancement in market value. American
railway bonds are good channels for the invest
ment of surplus funds