New-York tribune., 1909-01-09
FINANCIAL AFFAIRS
STOCKS CLOSE LOWER.
4 Fe5c Lozc Grade Shares Shoe
Net Gains-Gold Exports
Resumed

Stock market movements We're extremely
irregular throughout the day. with the final ten
iency in the direction Of lower quotations. net
losses Of point or more being recorded by the
prominent issues. Some Of the second rate
shares closed at material improvement following
a marking up process which has become fam
lar in this class Of securities in recent weeks
hut the general market. after periods of quick
changes on both sides of the account, reflected
further liquidation and professional pressure,
chiefly as d consequence of lack Of genuine sup
port. The strained conditions In the local trafhc
situation and the possibility of a substantial as
sessment on the underlying shares of the Inter
borough metropolitan were responsible for press
ure against the securities of the company. While
weakness in Brooklyn Rapid Transit some
thing of a sympathetic development, though rep
resenting in part pause IN the bull campaign
in the issue The Brooklyn Rapid Transit Com
pany Is in far better position to-day than i
has been in years, and its stock doubtless viii
he paying dividends before the Manhattan sur
face roads get out of their tangle. Gold exports
were advanced as a reason for the poor showing
made by the market, but in view OF the ease Of
money such an explanation will not carry weight
with persons well informed on Wall Street affairs.
Thursdays advance was based on covering of
shorts. the completion of which left prices open
to further attacks by the professionals. who
we're unopposed by the substantial interests, the
latter apparently being disposed to let quotations
move to q temporary lower level. as reflected in
the movements the high grade shares which
for months have been the leaders IN the specula
tion. Wabash preferred again was marked up
on the rumor that the company would be taken
over by the LackaRanna. The latter company
will get no bargain If it buys the Wabash prop
erty the current quotations for the wabash
stocks. Rock Island. Kansas City southern,
Southern Railway and Missouri Pacific were
among the so-called cheap stocks that made
progress. The market closed feyerish.
Strength in the sterling exchange market to-
gether with active demand for gold at Paris,
suggests moderately large exports Of the metal in
tho near future. The National City Bank
Yesterday engaged s. .OG0.OO0 gold for shipment
to the French capital S1.J00000 being in gold
coin. and if the supply of bars at the Assay
Office had been larger additional amounts would
have been taken, as demand sterling advanced
80 points under the influence Of an active in
quiry for remittance nd only light offering Of
bills The advance in exchange large
enough to make exports Of gold coin possible
Paris will finance the Russian loan OF S24o,Wh.-
e1 some time near the end Of the current
month. according TO cable advices just received.
and in the mean time the Bank of France will
make every effort TO add 70 its already enormous
holdings Of gold, which now larger than at
any time In the history Of the institution. And
it is quite probable that its demand for the
metal will continue after Il has met the Russian
requirements II is the policy of the bank 10
maintain heavy gold holdings irrespective of
current needs, and just long il is able
through International exchange market Condi-
has taken all the South African gold that has
been offered every Monday in the open London
market for months. il has been able 70 secure
further amounts in the United States and to
day it IS the richest institution in actual gold IN
its vaults OF any banking concern in the world.
The United States always Is willing let the
metal go abroad when conditions easy here
and foreign interest rates higher than they
are in New York its disposition To part with its
gold being based the security il feels in its
constantly growing favorable trade balance and
in its constantly increasing production from it's
mines. The United States produced last year
farm products of a valuation Of more than
81 900 100000. and it pay its debts abroad
either in produce gold. while il finds it profit
able 10 establish credit balances in Europe by
leaving payments due il at foreign centres and
adding to them by sending the precious
metal when money market conditions are favor
able for such movement
The local banks have gained in the current
week more than Sl4.0O00oo in cash on the
known movement of money. the greater part of
which came from the interior The heavy liaui-
dation on the Stock Exchange ia the early part
of the week suggests material contraction I'm
loans. and the chances therefore, are that to-
days statement OF the Clearing House ba nks
will show a substantial gain in reserves. The