New-York tribune., 1909-06-14
FINANCIAL MARKETS
HIGH STOCK VALUES.
Further improvement Talked Of
Moneu Rates Shoe Firmer Tone.

Current stock market movements do not sus-
cost that important distribution by the leading
U-ou street interests is under way though the
an,ount of securities carried on margin TOT SO
called public account is larger at the moment
than recorded at any time in recent months
Street opinion favors the theor! llal pI
ultimately will be advanced to higher levels
l,arrine- the development Of seriously ADVERSE
conditions of which there is no indication IN Ihe
nresent position of affairs in the hnanclal anu
business world, general factors aHeCIlhs Ihe III
dustrial situation continuing 10 strengthen tne
t,,nression that a period of great prosperity Is
in sight in all parts Of the country NhlIe At Is
admitted in most quarters that values Oh Ihe
greater number of securities have discounted lhe
return Of normal times it is conceded that the
sneculative forces behind the present market are
novrerfuI enough not only to maintain quotations.
AZ the high levels established. but to bring apout
further material improvement from the pFeVaii-
ing range which is now at about the pest ol 'il0
year. the leading active railroad shareS snoH
ing an average above 12S, and the prominent
,,dustrials an average of "a. against the low OF
the year, on February %. of 1920 FOR the ran
roads and 1891 for the industrials. MOST STOCKS
q re too high appeal 10 investors ana 'le I"Nl
that speculation has carried quotations TO
,oin+ that shows more senSitVeness to passing
Influences favorable to short selling ought 10
encourage caution among the element that oper-
ates on small margins and which unwlseiy Is
increasing its holdings on the strength OF paper
money In the course of the last week reallzlhg
sales at times were heavy in volume, and prices
responded to the transactions TO an extent tiat
attracted a more aggressive attitude on the part
of the bear contingent, but in view OF the
amount of selling the losses made were lnsls-
nifcanr and reflected a remarkable power OF
a absorption in all parts Of the list especially III
high grade issues. such as the Hartman stochS'
the Hill securities. st. Paul and United states
Steel preferred. The Steel shares and the gem
Vic OnlV small degree
by the reported delay in the matter OF listing
the common stock OF the United States steel
Corporation on the Paris Bourse while shghe-
" frmer tone in the money market was Wlthout
Derceptible influence upon sentiment and prices
The general level of values, based on an aver
age price is about 10 points under the pest IN
the history of the Stock Exchange lhoush oH
the basis of investment yield securlues are
nearly as dear reported at the record hsuIes
of 1906. when business conditions were at the
top notch of prosperity. Few stocks return
more than per cent, Union Pacific in the ran
road list being the most conspicuous liisIdlC9
Of q solid security paying at the current leFet
< per cent or better, while in the industrial
department United States Steel preterred'
American Sugar Refining. General Electric, Ma
tional Lead and National Biscuit furnish note
worthy exceptions. American sugar hellli!iie
stock has not been affected in its market value
by the confession of wrongdolng on the patI VI
the company. and. by this confession ana the
restitution of funds unlawfully acquired the
concern apparently gives notice OF an lntentioh
10 lead a better life, there is reason Tor en-
couragement among the holders OF 7usI -
Aning securities over the future conduct of the
cor,rany American Sugar Refining shares al
,-aHs have paid good dividends, ana from "ha'
NAV be learned from interests ldentned WIN
the property. no change In the rate VIII oe ioHiid
necessary as consequence of the payment 70
~ e,o,-arnr,en+ OF funds wrongfully withheld
eod Of the financial settlement with the fehh-
s,-lvania Sugar Refining Company. american
sugar Refining common stock yields at It's pres
ont ouotation upward Of 5lz per cent as against
a little more than per cent by United states
Steel preferred and 5.l7 per cent oE Chloh "a
ciHc common Baltimore & Ohio. Whlch pays
per cent advanced last week 70 4e'eL r4%
rarresented a return of barely ; per cent. Reao-
ing showed q return OF less thah Il PEI -,
A+cbiso.}. 439 per cent. Canadian Pacinc 5.'l
nor cent: St Paul Al per cent; Great North-
erp : g. per cent: Louisville & NashVlHe' 54''
New York Central. 3.S2 per cent; FehilsS anna
I - per cent: Northern Pacific, asa, ana South-
ern Pacific 400 per cent. The last named issue
Ms felred t,- the proposed plan of the directors
70 retire the preferred stock and by the wen
founded expectation that the dividend on the
common eventually Will be advanced 10 d .ilsH
er level Reading directors meet this week TOT
dividend action and holders Of the common nave
the hope that the great appreciation tnat mas
taken place in its market value foreshadoWs
the declaration Of a per cent rate upon "hch
basis the return at the prevailing quotauoh
would be under per cent
Heavy speculation in stocks and the prepara-
tiore that soon must be made for the July IN
terest and dividend payments doubtless VIII
serve to strengthen money rates in the rest
of the month though in financial circles moth
ing in the nature OF high money is looked for
as il is believed any advance will attract enough
currency from the interior and foreign funds
TO prevent the development Of stiff quotation
level In the last few days the presence OF for
eign money in the local market has been less in
evidence than reported a week ago, due no
doubt to the higher discounts at London. Paris
and Berlin. Speculation in stocks has reached
heavy totals on the London exchange, and the
demands upon the money market at the British
capital are correspondngly large. Therefore
il evidently will require considerable advance
in rates at this centre TO induce extensive offer
ings of European funds here. Foreign exchange
has been irregular. with the current tendency
suggesting the continuance of high level for
some time 10 come, owing to the active demand
for remittance as a consequence Of the present
big merchandise import movement and the
scarcity of grain bills which have not been Off
set by an increase in cotton bills and offerings
against purchases OF securities in this market
for foreign account Exports OF breadstuffs for
the month Of May, the figures Of which were re
ceived last week, showed reduction from the
same month last year TO the value of S3,744,l61
while exports Of cotton presented a gain OF
Sq2l3677 the total outward movement of do
naestic products showing a net gain of $3S21,-
23S against net loss for the eleven months or
tl... fiscal year OF 500 53l, 197- The revival of
foreign demand for cotton and copper encour-
ages the expectation OF general Improvement in
our export trade though the chances OF heavier
shipments OF grain before the new crops are
available are not promising owing TO the small
stocks on hand in the United States. Crop con-
ditions reported by the government last week
did not show up well for winter wheat. but 9TH
q