New-York tribune., 1909-06-30
FINANCIAL AFFAIRS
STEEL STOCKS STRONG.
General Market Enjoys Impore-
ment-Money Market Outlook.

ON : relatively light volume Of business stock
market prices advanced throughout the best
part of the day. fnal quotations showing net
gains Of from 1 TO points among the ieanins
issues The upward movement failed 70 nFlHs
out substantial offerings for ordinary commits
sion house account. but at the high Levels quiet
distribution was reported in Reading. the Harm
man shares United States Steel and other prom
inent securities from sources that suggested
Willingness on the part Of large financial inter
ests to convert paper profits into cash. Stocks
we're bid UP by the trading element the move
rnent falling however. to attract much OF
public following. except in shares in Whlch
short interest existed notably in Reading. Which
recently was sold in fair volume on the lneoIS
that il was at A level entirely out of proportion
70 the actual value Of the stock as an invest
r,ant and on the general belief that a large
weak bull account had accumulated IN the issue.
There was no evidence of the latter IN yesteT-
days dealings. though the character OF the BUY
ing did not indicate absorption or the STOCK OS
insiders Indeed near the close of business
rood selling was reported Reading is too hlgh
TO appeal to investors but it lends itself eashy
TO manipulation and as a consequence IL oouDl-
less will remain strong poular faNoTlte JUST rs
long as the bull element is able TO keep prices on
the lump And the same thing may be SAID Oh
United States Steel common. which IS now sell
ing within = Of its best quotation for the year.
In the afternoon the industrial shares GeVeIopeu
a considerable degree Of strength, the Hetal
issues being noteworthy features. especially
Steel common and preferred. which showed a
maximum rise of 21a and 2Ss. respectively. Ihe
floating supply Of United States Steel preferred
ie extremely limited. Interborough- Metropolitan
stocks in the early dealings were helped oy ao-
vance information OF the purchase by the lead
ing banking house in the Street OF $1O,O0O.OOO
first mortgage > per cent bonds Of the company,
announcement Of which was made toward the
close Of the market. Rock Island was in fair
demand: also New York Central and American
Sugar Refining The general market ended
strong.
Currency continues to move TO this centre IN
large volume receipts far in the current week
suggesting a further ma terial addition TO local
bank cash holdings in Saturdays Clear e
House statement. AS a consequence or the posi-
ton Of domestic exchange, which shows pre-
MUM Of 80 cents at Chicago on New York ana
40 cents at st Louis there is little probability
of strength in money rates over the end OF the
fiscal year while throughout the next month
accommodation in all departments of the market
doubtless will be extended on the basis of pre-
vaiIing quotations. unless the demand from the
interior in connection with crop requirements
should develop earlier than usual Money rates
extremely easy throughout the summer Of
1908, and last fall call funds did not go above
Az per cent. but conditions affecting the mar
ket year ago and in the rest Of the season
radically different from those reported at
present. The idea held in some quarters that
money rates I'm the late summer and early
autumn will rule the easy basis Of the cor
responding time in 1908 is not well founded.
though stock spectators who but one
side to the current securities market assert that
the possibility of disturbance in money is too
remote TO warrant discussion. In 1903 the In
terror banks did not have extensive balances IN
the New York institutions, and in the crop NOV
ing period were not compelled to call upon this
centre for heavy amounts of currency. their
own vaults were well supplied with idle money
to handle home requirements. In recent months
the West and South have sent an enormous sum
of money to New York for use in the speculative
and investment markets, and a result OF this
operation interior banks will not be in position
to finance the crops and general trade demands
in the fall without assistance from the East,
which is not in good position to help the
West as it was a year ago. Notwithstanding the
large amount OF currency that has been re-
ceived from out-of-town points.
Loans Of the New York Clearing House banks
are Sl0S 141 800 heavier than they were at this
time in 1905 while the above legal re-
day last year. though deposits against which a
cess of the same item last June, while cash
holdings show a loss of 50 156 800 It NAV be
asked why cash is relatively in light supply IN
view of the heavy daily receipts of money from
the interior. The answer is found in exports
of gold from New York which have been more
| than S60,0pO010 since January 1. In view of
1 the facts cited and the demands that will he
made upon the money market in connection with
| corporation financing there ought TO be no
| doubt regarding the course money rates will
| follow when the harvest inquiry for funds de-
velopz Sterling exchange is strong, and IL is
not unlikely that further shipments Of gold will