New-York tribune., 1909-06-10
FINANCIAL AFFAIRS
STOCKS IRREGULAR.


Stocks were weak throughout the best part Of
tla day on a volume Of business that showed
material falling off in activity among commis-
sion houses and substantial speculative inter
ests that were important factors in last weeks
advancing market. At the opening heavy real
izing sales were reported. especially in Reading.
Southern Pacific the Steel shares and Amalga-
mated Copper. and in the absence Of aggressive
support the movement attracted selling by the
trading element which showed more interest on
the bear side IF speculation than noted at any
time in recent days, its transactions for lower
prices being helped by heavy foreign liquidation
in this market particularly in United states
steel common. the Hartman shares and Anal
aamated Copper. Gable dispatches indicated
active selling Of American issues on the London
exchange on the rumor that a hitch had oC-
CURED IN the plans for the listing ~ steel COM
mon on the Paris Boursc but in prominent for
eign banking circles the report received little at
tention as it was believed that any delay in
the beginning of operations at Paris in the
stock merely would be incident TO the tedious
formality involved in the establishment Of an
official market for new securities al the French
Ca1ital The general course Of trading reflected
willingness on the part Of the leading Wall
Street interests TO encourage temporary lower
range of values rather than the beginning of q
sustained campaign for materially cheaper quo
tatious. Stocks have been advancing too fast
Too many small accounts on borrowed money
have been established. and general technical
conditions Of speculation viii be strengthened
by reduction in the bull account and by 4
period Of healthful assimilation. In the late
afternoon covering Of shorts brought about i'm
provement from the low points. Union Pacific
and United States Steel being affected more
than other issues the first named stock ad-
yancing 10 a level above that recorded in Tues
days market 1t was suggested that the
strength in this stock was due TO buying by IN
siders. and according 10 trustworthy infor1na-
tion the inference was well founded. At 1913
Union Pacific made a now high record for the
year. and with the dividend deducted II sold
at the best figure ever recorded The recovery
in Steel common attracted commission house
buying Call money advanced TO 212 per cent
in the day. with renewals at "a per cent, the
highest quotations made in many weeks.
Conditions in the foreign exchange market
reflect moderately large offering at this centre
Of European funds and certain amount OF
bills against recent purchases Of American Sc
curities for London and Paris account, but un-
fortunately the relative ease in quotations in
the current week has not represented any i'm
rrovement in our export trade. Shipments of
merchandise from the United States show
heavy falling off from this time in other years,
and It is not likely that in the course Of the
next three months material Improvement viii
be recorded owing TO the scarcity Of available
grain supplies and the tendency Of foreign coun-
tries 10 make haste slowly in the matter Of
placing orders for future requirements both for
raw and finished products. Nevertheless. cable
dispatches indicate that at no remote period
foreign needs viii become more urgent under
tr, influence Of the Industrial revival now fore
sladoNed in the course of affairs abroad The
idea that Europe viii not oe active buyer in
this market of grain and cotton later in the
wear is not well founded but at the moment it
suits the purposes Of certain interests to en-
courage the expectation that export trade
will continue To decline. irrespective Of the
known factors in the foreign situation. which
suggest a tremendous increase in demands
this country not only for food products and
cotton. but for the products OF our manufact-
urers as wei. There has been an enormous
gain in the amount OF idle money at European
capitals in the last year while at the same time
thor has been "A substantial decrease ia the
stocks on hand # grain. cotton. copper. steel and
iron. Crop conditions abroad are not promising
and if the harvcsts in the United St?~es bring
forth an average yield, indicated by reports
from tie agricultural section of the country the
cereal export movement from here viii be heavy
On Il lower basis Of values than those pre-
vaing.
Investment operations in the current secuIt-
ties market are confined in great part to buy
ing Of attractive bonds over the coupter and
so-called second grade mortgage issues on the
Stock Exchange. The fact that the term second
grade is used should not discourage intending
buyers, the word second refers more tc the
price than TO the actual worth of the security
AS Z matter Of fact. there are few really second.
grade mortgage securities dealt in on the Stock
Exchange or over the counter. but there are