New-York tribune., 1909-05-03
FINANCIAL MARKETS
LIGHT STOCK CHANGES.
Hcauy Investment Buying Of Bonds
Monetary Conditions.

stock market trading in the last week vas
made I'D in great part Of the operations Of the
professional element, the sO-calied pubic pelhG
an unimportant factor in the dealings the
public fortunately Is suspicious Of the current
range Of values and Of the solicitude OF wall
Street over its financial welfare, though 1t is
not at all unlikely that a certain element among
the outsiders would rush in to buy If the market
should maintain aggressive strength. something
it has not done in the last six business Gays,
price movements having been extremely irreg-
ular and confined in the greater numpeT OF
shares within narrow limits At the close
week ago the leading active railway issues
showed an average price Of 12S-25- On Monoay
the same stocks declined to 1223S; on 1ussday
TO 122 So followed by an advance on Wednesday to
1926, with a further loss on Thursday to 122oS-
In Fridays trading the closing was 12S-4o, WIN
a slight general decline on Saturday. Industrial
shares moved in a corresponding manner. Ine
majority OF commission houses are bulllsh over
the future and they are advising the purchase
of securities all declines for speculative
profits. while IS far as investments are con-
cerned, they do not hesitate 70 recommend the
better class OF stocks which IN their opinion
have not vet reached level TO which they are
entitled hv their intrinsic worth. II must be
said however that at existing quotations the
greater number Of high class shares are selling
at advanced range, though at the prevailing
price Of money they do not appear dear. IN
vestrnent capital is moving into bonds more
an excellent business, and new offerings or
mortgage securities are readily disposed OF, the
recent record OF sales MADE by underwriting
syndicates being especially noteworthy in this
respect, and supplying marked contrast TO
the operations OF this character in 1903 and IN
the latter part Of 1907. when bankers could lind
no public rnarle: for securities they had
financed. Corporations that needed funds in the
periods named were, as d rule, compelled 10
secure them through the issuance OF short term
Y7pra ,r-7T n aSE matter
these notes by long time obligations and TO
raise additional capital fer physical require
ments.
Since the first of the present year new securt-
ties TO the amount OF upward Of s510,00o0O0
have been issued. and as money and investment
market conditions promise TO continue favorable
for the placing Of additional capital obligations
1t is not improbable that 1909 viii mark new
record in the output Of railway and industrial
stocks and bonds, particularly the latter. Finan-
cial plans are being considered at the moment
in banking circles involving the placing Of large
amounts Of mortgage issues abroad and It Is
likely many of the arrangements now under way
viii be brought to conclusion before the END
Of the fiscal year, followed by further opera
tions of the same character in the fall The
Pennsylvania issue OF SS0,QoQ 600, according TO
the best information. will not be placed until
later in the season. but before that time it is
expected that the Wisconsin Central the Mis-
souri, Pacific, the Erie and the Chicago Great
Western viii place attractive offerings upon the
market the Wisconsin Central already having
authorized a 100000, 600 mortgage. Missouri
Pacific will soon have for sale between S2o.eOc-
600 and $4,000. 900 bonds, the Michigan Central
has sold $10,000000 Of its authorized issue OK
s25, 600 600 debeutures. and doubtless will dis
pose OF the remainder before the end Of the
year. and the Erie, which last week accepted the
terms of the Public Service Commission on its
proposed collateral trust indenture, will use all
speed IN effecting its coupon refunding plan
There are many companies that intend to take
advantage Of the present fayorab bic market con-
tions TO make provision for short time notes
which mature in the first quarter Of next year,
while In addition these transactions there
will be largo offerings OF new securities for the
provision Of funds for improvements and for
reorganization purposes In the last week the
Kansas City Southern took time by the fore
lock by making preparations to finance in
the near future notes that do not mature until
1912 The operations IN the general bond mar
ket reflect the great ease of money and the re-
establishment OF confidence and credit which
rudely shaken by the panic OF 1907, and
the fact that the great corporate interests Of the
country are now able to secure the funds they
desire at reasonable terms and the supreme
faith Of the banking community in the theory
that the nations affairs are 10 move along pro-
gressive and healthful lines naturally supply
. strong argument for the operators in stocks
VINO believe that Notwithstanding the advances
already recorded the general average of railway
and industrial shares eventually will sell at
higher figures.
An appreciable hardening in the price of fin
ished steel products in certain lines and d quar-
terly statement Of earnings far more favorable
than expected by the United States Steel Cor
poration were factors Of the last week that
strengthened the idea that the tide had turned
in this most important branch of the country's
industries. Steel and iron conditions furnish q
trustworthy guide 10 the position OF general
business and therefore any development that
tends to show Improvement in the demand for
steel products IS a most effective influence upon
sentiment And cheerful sentiment IS Of
the foundation stones OF prosperity OF course,
the earnings OF the United States Steel Cor
great extent contracts on the basis Of old prices,
but even Improvement under that condition was
encouraging, though the perpetual pesgimiSts,
who gloomy in prosperous times because
they believe that some day there viii be dis
aster and sad in dull days because business has
not collapsed entirely, found no reason for
brighter spirits in the showing. The steel cor
poraton's report made a somewhat disappoint-
ing exhibit in forward orders. This is not
prising, at the end of the quarter consumers
were keeping out Of the market in the hope %
further cuts IN prices No one need worry over
the steel business in the United States. II has
It's periods Of depression, but 1t always recov-
with each succeeding period of ACTIVITY
greater than that preceding, while the periods
OF depression grow further apart with Ginain-
ishing loss in earnings. General business in the
country is making conservative progress, and
that is the best sort OF improvement for the
country. The stock market may run into q
period Of speculative imitation but our industries
not tending IL the direction of overs stirnu-
lation, and there is no reason to suppose that
they viii. The prices OF stocks and cornnlodf-
ties have advanced faster than business has
warranted, but it should be remembered that
the speculative markets always move in advance
Of fTp sT,Vr