New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-01-12
FINANCIAL AFFAIRS
ERIE ISSUES SLUMP.
Stocks Close on Rally-Erchange
Strong. seith Further Gold Exports.

Stock market values opened under the closing
in Saturdays operations. and throughout the
morning the tendency in the direction or
lower quotations. the movement being eHcour-
aged by break in the Erie shares, which IN
duced renewed bear pressure In all parts or the
list Weakness in Erie common and the preferred
Issues of the company was based on the topheaVy
position of the Erie market, accelerated by the
feeling in the Street that the Public Service
Commission would upset the roads plans Tor
the issue OF a large block of bonds. The Erie
position as far earnings are concerned IS
in,nroving but the company needs more money
and II hopes to raise II through an increase IN
its bonded debt which already IS enormous and
which for a long time to come will be heavy
drag on the property and seriously interfere
with the chances OF a resumption of dividends
on the preferred stocks. Erie eventually ought
to be paying proposition especially as il now
has behind II the best railroad and financial
brains in the country. The first preferred sold
down more than points the second and the
common more than 2, the three stocks. however
ending the day at rallies from their low levels
covering Of shorts in these issues and in other
parts of the list bringing about substantial i'm
provement in the general market IN the after
noon with final losses. when recorded. at frac-
ttons in the greater number Of issues. The local
Colorado & Southern stocks, Missouri. Kansas
& Texas and Consolidated Gas. the last named
showing q net gain Of points. Adverse rumors
regarding the state OF Mr.. Rarriman's health
be,ned the downward movement in the fore
noon operations while A reassuring statement
by Mr. Hartman later in the day attracted buy
ing in by the shorts. Commission houses we're
inactive. es far as purchases for public account
were reported. Outsiders apparently are be
ginning 10 realize that the speculative risks
have become greater on the bull side OF the
market as a consequence of the disconcertlng
declines that have taken place since last Mon
day a reflection Of which is seen in the heavy
falling off in commission house business
The withdrawal OF s25,o0O,o00 federal deposits
from national banks under the call Of the Secre-
tar, of the Treasury will leave less than 500
600 600 government funds in depositary institu-
tons comparing with the high water" mark
for United States deposits Of s249,500,000 on De-
cernber q, 1907. Local banks hold trlile more
than sS,0oO000 government money, and their
proportion OF the Withdrawals will be unln-
portant though interior banks doubtless VIII pay
the amount due by them to the Treasury
through their balances at this centre. which are
increasing rapidly. The movement of money TO
New York from out-oftown points is heavy IN
volume Just now, and promises 10 continue so
until a better mercantile demand for accommo-
in the monetary situation that encourages the
exnectation of a period OF materially higher
rates for loans in the near future. and as a con-
sequence of the growing plethora OF cash IN the
banks further gold shipments must be expected
and according TO the belief of many wall street
interests higher prices for securities, despite
the fact that market values more than measure
the favorable changes that have taken place IN
the financial and industrial world since the pc
rjod of regeneration from the panic of 1907 set
in. So far this month. however. the movement
of stocks has been disappointing to the adVo-
Gates OF better quotations. The expected Janu-
arv rise has not yet made its appearance, but
this is not contrary TO precedent. for. rule,
January advances have not started with the first
week of the wear owing to the heavy volume of
rea LIKING that always has been encountered for
the account of December buyers In the present
instance in addition 70 the profit taking move
nent the market has been compelled to handle
a heavy amount of forced liquidation melted by
the slump in Consolidated Gas stock.
Bear traders maintain that easy money does
not necessarily spell bull markets This is quite
true as stocks have declined in times OF easy
money and advanced when money has been at
stiff level but unless the chief financial interests
who have been behind the market for many
months have distributed their holdings. of which
there is ne evidence, the outlook does not APP
pear promising for extended operations the
short side of speculation. Sterling exchange was
strong yesterday. advancing to the highest point
since November 1907, the movement being
companied by engagement of 100000 gold
fer export 10 Paris. The scarcity of gold bars
at the local Assay Office was the only thing that
prevented heavier takings of the metal The
rise in demand rates was assisted by heavy for
eign selling Of American securities.