New-York tribune., 1909-01-07
FINANCIAL AFFAIRS
UE4KNESS IN STOCKS.
afternoon Slump FolIored By Re
corery in Most ShGres-N. 7.
Central Breaks 8 Points.

With the exception of Consolidated Gas the
general list Of active stocks opened at advances
as compared with the closing Of the preceding
DAY. and throughout the morning moved In the
direction OF a higher level moderately ac-
tive volume of business, made up in great part
Of the operations of the professional element
In the early afternoon a resumption Of bear
pressure and further liquidation for the account
Of commission house interests offset the early
Improvement, prices breaking with violence in
many issues under the lead Of New York Cen
tral. which sold down points from its high
range following the announcement of the cleo
ton of ". .. Brown president Of the com
pany It was not. however. Mr.. Browns cleo
tion that responsible for the decline. trad
ers apparently basing their operations in the
stock on the fact that Mr.. Hartman had not
been called at yesterdays meeting to the board
Of directors The Street had been looking for
ward TO the injection of new blood in New York
Centrals management, and accordingly II was
isappoirted because its theory did not pan out
as expected. 1t is not unlikely that later on
Mr. Hartman will Join the Central's forces, but
in the mean time spectators who are working
for lower prices doubtless will assume bear
ish attitude the company's stock, particu-
larlv as recently a large bull account has been
accumulated in the issue The break in the
afternoon carried some Of the leading secur-
ties from ] TO points under the best figures
of the day, but before the close a recovery set
in which left last prices at irregular changes.
with more net gains than losses. Consolidated
Gas showed maximum loss of points ana d
net decline Of Ia. and New York CenGal net
loss of 2A. while Great Northern. Pennsylvania.
Reading and Union Pacific were only frac-
tfonalIv off at the close Consistent strength
was presented by American Smelling and the
Colorado & Southern shares. The local fractions
were firm features; also Chicago Alton. Ca
madam Pacific, United States Steel and South
ern Railway preferred. The market throughout
was extremely irrational. and reflected a highly
nervous tension In speculative quarters There
have been some very heavy losses in substan-
tIal circles in the last few days as consequence
of the slump in Consolidated Gas and other is
sues
Though the local banks continue to gain >on
their operations with the Sub-Treasury and the
governments expenditures continue to exceed
receipts il is encouraging to note some improve
ment in the federal income which In the last
month showed a gain over the same month IN
+l,e r1recednsy wear of a trffe more than So 900
600 Receipts far in the current month are
slightly under those Of the corresponding period
in January, 1905, but it is believed the corner
has been turned and that from now on better
figures In the matter of income will be recorded
as compared with the light returns of the sec
ond half of the last year Expenditures. how
ever from all indications for months TO come
will be far IN excess OF receipts, and as con
sequence the Treasury will be compelled to d"
some sort of financing in the near future in
der 10 maintain its working balance at a respec-
table level the total available cash In the gov
ernment vaults present amounting 10 S4l.-
80 III Fortunately. the banks are well sup
piled with funds, and in position to give
up government deposits or take Panama bonds
Indications point to a heavy accumulation of
money in the banks of this city in the first half
of the present year. with the chances faVoring
a considera bile outgo of gold in the course of
that time. unless there should he such a marked
revival in trade here TO bring about stiff
rates for loans 4 Development that just now
does not appear promising. owing TO the dispo-
stion Of merchants and business men in general
to move along slow lines until they know
inst what to expect in the way of tariff re-
vision: also TO the tendency the part Of the
mercantile community to discourage anything
in the nature of boom in our industries. The
prospects are favorable for d gradual return in
the business affairs of the nation to a normal
basis but in the mean while there will be more
money in the banks than demanded by trade
conditions, which may lead to large shipments
of gold 70 strengthen our credits abroad and to
higher prices in the stock market
Easy money already has helped values to dis
count the changes effected in the business world
since the period of recuperation set in, and it
is TO be earnestly hoped that Notwithstanding
the in the monetary situation the great
banking powers IN the Street will make CON
certed efforts 10 prevent the development OF q
period of infation We want aud need stabi,-
ifv in prices. but q mighty rush Of quotations
toward a fictitious level, based slut OF