New-York tribune., 1909-06-06
FINANCIAL AFFAIRS
STOCKS IN DEMAND.
EarIy Real1ing Follouced by In
creased Buying-Bank Re
series Decline.
series Decline.

Stock market trading heavy in the two
b,,-. o4 business on a movement Of values that
showed great irregularity. with many ISSUES III
the early trading selling under the closing Oh
the preceding day on active profit taxing olel-
ations though in the greater number OF seeuIl-
ties net gains were reported at the close. The
so-calied Morgan group was in demand at ad-
vancing values. while Northern Pacific again
made a good showing on the same sort of buy
ing that recently was reported in Southern Pa
cifc. the last named issue and Union Paclhc
Yesterday being among the shares that reflected
the influence of realizing especially in the first
bour dealings Buying OF the Erie shares was
helped by the known improvement IN the aHdiis
of the company and by the belief that important
new interests will enter the board or directors
tbe common gaining for the day = and the
first preferred 2A. In the last hour the metal
stocks and many other issues developed great
strength while the general list showed recoV-
cries from the early reaction on a ouylhg move
ment that appeared to be for the account oi
the rrorninent speculative interests, whose op-
erattons attracted an increase in public atteh-
tion in all parts Of the market. A new hlsh
record for the year was made by Amalgamateo
Conner while steel common sold near the pest
figure made IN Thursdays transactions ehe ao-
vance extending to American Smelling ana ne
dining which also enjoyed new high level Tor
1909. Louisville s. Nashville. Atlantic Coast
Line and General Electric were among the
strong features that attracted particular inter-
est owing to the character or the rading III
them. Republic, Iron and Steel issues reflected
in higher prices the resumption OF dividends on
the common at the old rate Of per cent year.
Union Pacific, Reading. Southern Pacific, New
York Central, Baltimore & Ohio Atchison and
Steel preferred closed al net losses. but else
where among the active issues net gains We're
recorded, Ontario & Western being a feature
600 shares, or at the rate Of 100000 shares
for a full day. Barring adverse developments,
traders look for higher prices to-day.
The advance IN stock market values in the
last week has created some uneasiness in
circles where the adverse effects Of overspecu-
lation are fully realized, and the indication that
certain large speculative insiders ere feeding
out stock at top prices to public operators sug-
gests to many minds the possibility Of trouble
at no remote period for the people who have
accumulated large bull accounts on small
margins It is maintained, however by leading
speculative interests who do not care a fig for
the opinion OF conservative bankers that stocks
3re on the upward path. and that while there
doubtless will be periods of sharp reaction the
general tendency of values will be IN the drec-
ton of higher quotations until the movement
is checked by better rates for money. There
was little indication last week OF immediate
advance of Importance in the loan market,
was there anything in yesterdays Clearing
House statement that foreshadowed the deve-
opment of stin money in the near future,
though the expansion in loans and the decrease
in reserve encouraged the idea that If specu-
lation should continue at the current rate money
market conditions would be far from favorable
at the time when the banks called upon to
finance the harvests There has been so much
money sent TO this centre from the interior in
recent months that II is extremely proba BILE
the outward movement in the late summer and
early fall will be unusually heavy. and while
the outside demand is not factor that specu-
lators care TO discuss at the moment, IL is NOT
impossible that under our antiquated currency
system the expansion in general business and
speculation will compel the issuance OF emerg-
ency currency IN the autumn.
In the statement OF bank averages loans in
creased S11.1S5. 400. while in the exhibit of
actual conditions of Friday night the ex-
pansion amounted to SIS, 1857. 400. The decrease
in cash in the average figures So. .S55. 200
and about the same in the actual showing the
result Of all changes being reduction in the
reserve above legal requirements of S612S, ,925
to Sls,S56,3Oo, against SAT 1872 200 at this time
year ago and S5.9SO525 IN 1907. Trust com
panies also increased their loans the gain
amounting TO S6.527, 200. and showed an ex-
panson in cash OF upward OF S1OO0OOO Total
leans Of the associated banks now stand a,
Sl.343 031.40o. against s1.211, COL 500 ar thIs
time in 1905 and S1.141. .445.40 In 1907.