New-York tribune., 1909-03-18
FINANCIAL AFFAIRS
STOCK PRICES HIGHER.
Trading Expands FoHowing P~bh-
cation of Tariff, Schedules
Sterling Erchange Up.

Rear traders made active efforts to bring
about q selling movement following the publica
tion Of the proposed new tariff schedules. but
outside Of board room operations there no
response TO the small declines reported, while In
the subsequent dealings decided strength
shown in most parts of the list with last figures
about the best Of the day. The maximum ac-
tivity in the railroad list was IN Union Pacific,
while Reading also was a leading feature at a
net gain Of 27s, the two stocks named and Kan
sas City Southern supplying the only instances
among the active shares where final advances
beyond one point, though IN many stocks
good sized fractional Improvement was recorded
The fact that the tariff bill as presented 70
Congress contained nothing that
easiness among incorporated interests naturally
encouraged a confident feeling in the
Street and notwithstanding the suggested 80 per
cent reduction in the tariff steel products
and the proposed placing Of iron ore on the free
list Spectators were unable to induce anything
more than passing furry in United States
Steel shares. which sold off for short period
and ended ct a rally and a net gain to their
credit. While the volume Of business showed
large increase as compared with that of the pre-
ceding day the chief part Of the days transac-
tions was furnished by nine stocks, in which
more than two-thrds OF the total operations
were reported, the trading in Reading, Union
Pacific and United States Steel common alone
amounting TO 30,300 out Of the entire dealings
Of 66l 692 shares. Shorts were active in the last
hour in covering throughout the list Of promi-
nent issues, the markets chief support coming
from this source. There was no important trad
ing for. outside account as far as new buy
ing was concerned. but there was some mod
erately heavy buying by commission houses to
cover outstanding contracts by speculative In
terests at Washington and other cities. where
the impression apparently prevailed that sharp
break would accompany the announcement OF
the tariff bill provisions. United States Leather
preferred sales Of 300 shares lost II Il points.
Foreign houses sold balance
Current transactions in the stock market, while
made up in great part Of the operations Of the
professional element, include investment
buying among the high grade shares and mort
gage issues, with fair proportion Of business
for the account Of small investors, who are buy
ing odd lots for permanent income. In view Of
the present position Of the money market there
is little incentive for extended trading the
short side of speculation, and until rates for
funds seek higher level it is not likely there
will De a material decline from the prevailing
quotation level unless IN the mean time there
should be some development seriously affecting
confidence and intrinsic values. On the other
hand. the position of the metal trades and the
uncertainty over tariff legislation naturally tend
to restrict business the exchange, and
consequence important Improvement is looked
for IN the immediate future, though many
brokers are advising the purchase Of good Sc
curities on all reactions 20 hold for the time
when prices they assert. ought to sell higher as
result OF hoped for better trade conditions
following the settlement or me SSrln question
and a revival OF activity in the iron, steel and
copper industries. Underlying conditions in the
business world are sound, and with the elimina
ton of the current uncertainties Il Will be nat
uraI 10 count upon return OF normal trade
situation especially II the years crops turn out
well but expectations OF any great advance in
securities values may not be fulfilled owing
the relatively high level at which quotations are
now rulinR-a level which in the opinion Of
many conservative Wall Street interests fully
discounts any improvement that may take place
in the business world in the course of the pres
ent year. In the case OF the metal shares and
among some of the high grade railway securities,
as for instance Union Pacific better quotations
will be warranted, but when the time Of normal
business affairs arrives the money market may
not be favorable to extended bull speculation.
Money rates have not been affected by the
loss on gold exports, owing to the light general
demand for accommodation but it is conceiv-
able that with a continuance of the outward
movement Of the metal, with possible further
government financing and with resumption Of
& mercantile inquiry for funds loan quotations
will move to a higher level. Local bank re-
serves are not large, though the amount OF
money in the country is heavy, and this centre
Will be called upon to finance any demand tha:
may develop il would not require much press
ure upon our bank holdings TO bring about a
material change in the course of the money mar
ket Fortunately. government finances are i'm
proving as a consequence of increased customs
and internal revenue receipts. II is not con-
sidered probable however. that the Treasury
Will be able TO go through the Year without