New-York tribune., 1909-07-28
FINANCIAL MARKETS
L. u. AT NEW RECORD.
Steel Shares Strong and 1ctire-
Di1idend Increased.

e,+ocl- market nrices were strong throughout
the dav on a light volume of trading. which
was made up in large part of the operations IN
Union Pacific, United States Steel, Amaiga-
mated Copper Rock Island, Republic Iron and
steel Reading and Southern Pacific. Union
Pacific made a new high record at within a
fraction of double par. while pronounced strength
marked the course of United States Steel the
buving of which was based on the theory that
whatever the directors of the corporation did at
their dividend meeting would be favorable 10
the stock that is. the declaration OF an IN
creased dividend would show that the earnings
fully warranted the change. while the malhte-
nance of the rate on a 2 per cent annual basis
would indicate that while an increase could De
conseryatfvely made, IT would be wiser TO m
crease cash resources than to distribute moro III
dividends at this particular time Announce
ment that the directors had agreed upon tilo
unimportant increase Of one quarter OF i per
cent over the last preceding payment, making
the rate for the quarter three-quarterS or per
cent was not made until after the close OF busi-
ness The most interesting feature or the steer
directors meeting was the reading of the quar-
terlv statement Of earnings, which showed
Gain in net results over three months ago OF
s6 3a9 223. and an increase in unified ORDERS OF
5l5.344 tons and gain of 744063 tons over tile
same time In 1908. the progress maze IN Iili9
respect by the corporation supplying one OF the
most trustworthy indications Of the beginning OF
an era of great industrial prosperity In the last
hour of business buying increased IN volume
throughout the list and prices eXhibited a naro-
ening tendency until the close WIN net gains u
| per cent and more in many of the leaolhg
securities the Hartman and Steel shares show
ing the greatest improvement. Bull traders were
intensely optimistic. The possibility of mate
rial decline was not entertained in bull circles
Canadian and Western exchange rates are
I o,-ire, against New York and from current in
dIcations IT will not be long before shipments OF
currency from this centre 10 the interior ana
shipments of gold to Montreal Will become some
thing of a factor in the local money market
canada will harvest a wheat crop estimated at
more than 100000 bushels this year and. in
addition to the requirements in connection with
its financing the Improvement In general cana
dian trade will call for a considerable amount
of funds from the Dominion banks wnlch nave
largo balances employed at this point. Canadian
exchange is at a point near the gold importing
level New York will be called upon for further
amounts of gold for the account Of Buenos Ayres'
and unless there is marked chahSe IN the
roovenoent of our foreign commerce this country
IN not he ahle to bring in large sums of the
yellow metal from Europe at the time when
there undoubtedly viii be an urgent need ot
assistance from that source Fortunately. we
are approaching the crop moving period with
large bank reserves, but it should be borne IN
r,ird that interior banks have heavy sums on
denosIt here for which there will be call in
the late summer and autumn. and which viii
ynvoIve substantial reduction in loans that
speculative commitments III iile STUN
and commodity markets The railroads have IN
mind large financial plans that mean the issu-
ance Of an enormous amount Of new securities
before the close of the current year, new mer-
camille erterrrises and the extension of general
,,anufacturing activity that will follow the set
t1a,oen+ Of the tariff question will make heavy
drains ,pon the money market, while probable
-,o,-errr7ent financing incident to the accumu-
Iatfnr Treasury deficit, which now stands at
oore than s1s 600 0OO must be taken into ac-
count in figuring upon the future of loan quota
tions.
Money is so easy that the speculative
coror,,,nitv is counting upon a long period of
cbear rates for accommodation. but bankers are
beeinnfng to prepare for the calls that soon must
he made upon them from other sources. and,
though stocks may not look dear at the prevail
ing level of money rates. an advance in quota
tions for funds to a materially higher range will
detract from the strength of the bull position.
1t costs little to carry stocks at the moment
and the larger number Of operators of the ordi-
nary type believe that they will be able to secure
a better price for their holdings in the
future. 1t is a good rule in the stock market TO
be satisfied with small profits rather than take
the risk of waiting for better results. 1t is
seldom practised, however. except by the
perienced traders who'd not believe in keeping
their accounts open for any length OF time. Bull
traders are counting upon active advancing
market in August from the current high level
which on the average is within points OF the
best ever recorded in the history of the Stock
Exchange but conservative interests are advis-
ing their friends to take profits all bulges de-
snite the splendid outlook for the crops and 9en