New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-16
FINANCIAL MARKETS
HEAVY STEEL TRADING.
Bull Optimism Riotous- Out-of-
Tozcn Banks Lend Money Here.

Further substantial improvement was record
ed in yesterdays stock market prices. maximum
gains of from l to Ia points being common
among the leading issues There was some self
ing following the publication OF the weekly es-
innate of the movement of money but the ad-
vance was resumed before the close on an
active demand from the shorts. final Quotauons
being we'll above the closing IN THURSDAY
operations Commission houses reported bet
ter inquiry for public account, and the bulllsn
character of the advices sent out by the larger
number of Wall Street houses that do wholly
speculative business suggested the probability
of better prices to-day and reflected a strong
desire on the part of the element that has been
behind the bull campaign for many months to
make something of killing on the present rise
The bulls proving their assertion that they
can advance prices In spite OF adverse monetary
conditions, but the prospects are they will lose
money for the public by their operations. Trad
ers received the tip yesterday that United States
Steel common would sell at par before the close
OF the market to-day, which would mean an
advance in the two hours of trading Of about
eight points-a movement wholly improbable
unless a corner exists in the stock, of which.
fortunately. there is no indication, while they
also were advised that fireworks might be seen
in the Hartman shares, Reading. ST. Paul, New
York Central and Amalgamated Copper. The
last named issue was favoraby affected by the
strength in the copper stocks abroad and by
evidence OF some improvement in the copper
metal trade, which has been slow to feel the
effects of the return OF normal times in most
lines OF industry. Supplies Of copper in con-
sumers hands small, and buying move
ment of large proportions should be develop
ment of the near future. The initial transac-
ton in Steel common 100 shares at 921s
followed by 2S,OOO shares at from 923s to 92ss.
representing the tidy sum of S2,600O0O, while
the total operations in the stock of 41900O
shares represented more than S3S,O0O,O0O. This
sort Of speculation is quite likely TO end in a
serious collapse. especially the local banks
!
gerous speculative activity.
According to the known movement of money
i'm the week the local banks have lost upward
of S6,oo00O0 in cash holdings on their opera
tions with the interior and the Sub Treasury.
the chief part of the loss being to the govern
ment- Shipments of currency to the interior
were only slightly in excess of receipts the
improvement in the volume of money coming to
this centre rejecting the better rates for accom-
mediation and the desire the part of country
institutions to take advantage of the call loan
market here before home needs become urgent
Local trust companies have been heavy lenders
i'm this market in the current week for the ac-
count OF their correspondents in various sections
Of the country, and il is not unlikely that this
movement will continue until November /, at
least, and make possible further successful
manipulation for higher prices on the Stock Ex-
change, where bull optimism is running riot
Shipments of currency from New York this
week show a reduction of $4,600OO0 from the
record of the preceding week, the falling off
also indicating the better quotations for money
that have induced many out-of-t town banks 10
leave their balances here. while the loss by the
city banks TO the Sub-Treasury reflects the ne
ceSslty by banks IN some parts of the country
TO conserve resources on hand for home re-
qurements by the settlement of their obliga-
tions to the government through drafts to the
federal treasury their balances with their
New York correspondents. The chief shipments
Of currency from New York are to the West and
South and the receipts are mainly from nearby
points. Owing to the large offerings of banks
in cities near New York, call money ruled under
> Fer cent yesterday, and the speculative ele-
ment was quite convinced that the period of
stiff money was at end. baslng its ideas pcr-
haPs on the money market record of a wear
ago. WheE there little demand for accom-
mediation in any part of the country and when
bank reserves at all points were far larger than
they are just now.
The present period should not be compared
with l3GS or with 1897, when call money touched
100 per cent, but a fair comparison NAV he
made with 1906, when conditions were much like
those now prevailing and when call rates went
from a high of Z per cent in III week ended
October - TO high of per cent in the week
OF November 3; II per cent in the following
week, 20 per cent the next week and ~ per
q ut In the last week of the month. The Bank
OF Gngiand's rate lvanced to q per cent
at this time in 1906 against per cent at pres
ent, which is an advance Of ~ per cent in less
than two weeks Another advance in the Brit
ish institutions rate of discount is not improb-
able in the event of increasing speculative
activity and efforts Of local operators TO carry
their commitments on London borrowings owing
10 the relatively low position Of the banks re-
serve and the constant demands upon London