New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-09-03
FINANCIAL MARKETS
STOCK PRICES STRONG.
Trading in Hands Of Professional
misunderstanding Rates Higher.

stock market t.rices were strong IN the best
mart OF The day On relatively hgat NolIi'e %
business While there was no plol@ .l-'-4s4-
"a tie dealings and no substantial buying or
7e-s from the more important Wall street opera
-,-s rrg-+s n times 10 bring about lower itNeis
were ineffective. even adverse OUTSIDE usNe'oP
r7euts failing 20 induce @ selling movement
Though the governments August report on COT
ton conditions vas the poorest ever plbl-siiea
showing 2 percentage that indicated crop taF
he1o,1 The expected needs Of consumption thefe
was no check 70 the strength ~ securltles fri's-
while the remarkable resistance SHOWN 70 Us
lrfavorabie factor ENCOURAGED the oei-'1 80
stocks were IN stronger hands Than al any tihe
IN many weeks and that the recent reao3ustInent
of quotations 20 2 lower level had Iaced tAe
general market IN an unusually strong teeIlille@
position. The strength was most IronorLSt7l
g. tie r----ireut shares. notably Readlng. Lnlou
pecfec and United States Steel the Improving
tendency In these issues being plainly e'lcsnt ln
the nervousness e the shorts, " no hah hoptA
70 cover their contracts following The puo-ca-
-sor ~ The Gotten figures. Possibly the slgnlh-
canoe a the current conditions n TIE cotton
@elds vas not fully realized on tic STOCK TX
change -eererda- : percentage conoitlon al
-he end OF August az only o3.f per cent Almost
srefls disaster. In the general list prices were
especially strong N the afternoon ana az ths
close net gains Of point or more we're common
among The leading issues C-ion Pacific Read
irv T-rfted States steel and Aralgamatec Cop
rr being features % the late trading. with every
Indication Of oUcIlrE llELeT I-le llJlllil-et g
the short Interest was by no means eliminated
by the DAVIS advances. Ar1algamated Copper
was helued by the increase in the dividend on
Calumet ana Eccls. buyers arguing that II TIE
latter company found its business profitable
enough under current conditions in the copper
trade 10 nay more 70 its stockholders the Anal
esrnated company soon would be able % take
similar action. Copper prices promise 70 range
higher before the close Of the year.
Il &c estimated in London financial circles that
New York has loans outstanding in the English
market 70 tie extent Of upward OF S4ooeoo-"o.
while Il is believed that our total foreign In
debtedness on loan account Is IN the nelghoor-
bood Of S5g06000oo. chiefly IN the form q
-7inetv-dav bills maturing in October and No
vernter. AS money should be relatively easy az
the British capital in the autumn no difficulty in
securing renewals is expected. but the very
fact that this country is so heavily indebted 70
Fr1rone AZ a time when our export trade is light.
with no indications OF an excess Of merchandise
exports over imports In the months 70 come
large enough 10 hquidate the balance against
Us should be borne in mind by stock market in
,e-ests who are counting upon an aggressive
hill movement throughout the fan In recent
DAYS large loans have been negotiated abroad
for the account Of Wall Street houses and the
decline in exchange in the last week without any
increase in the supply OF commodity bills fur
rlishes ample proof OF fresh borrowings by local
bankers in Europe. The credits thus established
have been drawn on freely and the sale Of the
bills involved has carried demand sterling down
rates we're hrrner Yesterday. The market also
has been Influenced by the sale Of American
bonds TO Europe, and il is believed in well in
formed quarters that the great amount al idle
capital abroad may become a more important
influence in our market for mortgage securities.
with the effect CT ofsetting in part our heavy
loans al London and Paris. Upward Of S2o.@0o.-
900 fn American bills mature in Paris this
month hut the chances are that provision fo-
meeting this indebtedness already has been made.
The Bank OF England showed in its weekly re-
turn yesterday slight falling OF in its pro-
portion Of reserve 20 liability from week ago.
4 though the percentage Of -. - compares with
; nine-year average Of 5l3l, with no suggestion
in the changes ia the various Items OF a sub
stantal hardening in London money rates in
the current month. Money abroad doubtless
viii command a better price in the rest of the
year than that recently prevailing, but IL is not
! likely. however that the level will approach
that which is expected 10 develop in the New
1 York market
/ Bank clearings in the month OF August SIMPLY
] trustworthy evidence Of the Improvement under
way in American business affairs the gain as
compared with the corresponding period a year
ago. being confined to no one part OF the country.
While the figures were swollen a New York and
Chicago. as consequence OF stock and COM
modify market speculation, the movements in
! The speculative markets were by no means the
/ chief factor IN the expansion reported in ex-
changes Bt all centres. as heavy Increases were
I shown at all leading cities the total amounting
20 sl3445.9o5.s4Z, as against So 2s3.s2G in
August, 1905. s1l.536.s0s.s3S In 1897 and sI3l57-
634I32 in 1906 the gain over last year being a
little more than y per cent and about . per cent
/ over 1906. Growing bank clearings expanding
railroad earnings. increasing activity In. the iron
I and steel trade and bOuntiful grain harvests arc
four factors that furnish q strong basis Tor
prosperity. II is 70 be hoped that this brieh,
outlook for great industrial activity win not be
upset by reckless speculation.