New-York tribune., 1909-05-22
FINANCIAL AFFAIRS
MOST STOCKS HIGHER.
HIGHER.
Steel Common at Ne5C Record
Banks Gain Cash.

Stock market trading light in volume on
an irregular movement Of values, with nhai
prices at small net gains in the greater nurhoeI
Of issues. Though the majority of traders ap-
peared to be bearish they did not operate on
their convictions to any noteworthy extent
while on any indication of active buying, as IN
stanced In United States Steel common, which
made new high record. they were quick 10
follow the lead. The buying power mas mate
rally diminished IN recent days. and the gen
oral market apparently is resting prior to the
DEVELOPMENT of an important move, Whlcn most
DeouIe believe will be in the direction of higher
quotations notwithstanding the fact that cur
rent rrice levels show a tremendous expansion
in values since the early part OF the year
TerIod of rest sometimes serves the same pur-
pose as reaction, and bulls on the market nlio
in the current dulness reason for encourage
roeut as the last dull time in speculation Z
number of weeks ago was followed by increased
activity for long account. In the late trading
the transactions declined to insignificant totals
while quotations Jagged from lack Of attention,
the only semblance of activity being repoTleu
in United States Steel, the Bethlehem steer
issues. Union Pacific, Amalgamated Copper ana
Reading Steel common closed one point on
f-or, y+s high while Union Pacific, Reading and
Arnalgamated Copper showed fractional declines
from the best Consolidated Gas. National
Railways Of Mexico second preferred New HoIh
Central Northern Pacific and St LOUIS Soulh-
western were the strong features. but showed
little activity, operations a rule representing
nothing beyond traders operations 1otaI
dealings for the day were slightly In excess OF
5O0 600 shares, which compares with more thah
o0o 600 shares on the same day week ago
transactions in bonds moderately heavy
rejecting a good demand for the SO called low
nriced issues from substantial sources
Strength in United States Steel securities in
recent weeks, which has carried both the com
mon and preferred TO new high levels, encour-
ages a most optimistic feeling in the street
-Sa TF1d
this country while it also serves TO create
greater confidence in business circles IN the
belief that the time is not far distant When our
general industries will be operating on wholly
normal basis Steel is one Of the best baroIne-
ters OF trade, and rising values in the steel
shares reflect a speculation backed by something
more than theory, and investment buying Oh
United States Steel preferred supplies a strong
argument for the people who are bulls ON the
country and who believe that with the ellmlna-
ton Of tariff discussion the only remaining oD-
stacle 10 complete industrial recovery Will be
removed. Steel common, despite its advance, IS
not dear as A . per cent stock, but the idea held
in certain quarters of the Street that the rise IN
value OF the issue foreshadows an immediate
increase in the dividend rate-that IS at the
next dividend period-does not appear to be well
founded. Ultimately the stock will be on a
HIGHER investment return but in view Of the
recent long period of depression in the steel
trade and the forced economies by the steel
cornoration II is extremely unlikely that the
directors of the concern swil bother themselves
for a considerable time to come with the ques-
+ion Of placing the common stock upon an ad-
,yanced dividend basis. Though earnings in the
steel industry are improving II should be borne
in mind that for many months the companies
have been unable TO appropriate from income
the usual sums for physical improvements and
for other purposes, the. consequence OF which
doubtless will be reflected in unwillingness ON
-hs mart Of directors to enlarge disbursements
70 stockholders until earnings are great enough
TO warrant large deductions for extraordinary
expenditures which in the last year have not
heen important factors in steel companies oper-
ations. At the moment the activity on the part
of consumers has not reached the stage war
ranting rapid advances in prices, and it is en-
couraging to note that conservative policy
in the matter OF prices is being carried out by
the chief interests in the trade.
Large offerings of out-of-town money at this
centre and the drawing of finance bills, which
represent the lending Of foreign money here.
have served to establish loan quotations on a
somewhat easier level The recent firmness IN
time funds has fattened out, and at present
there appears no immediate prospect OF higher
rates for accommodation, the Joss to the banks
on gold exports being Offset in great part by re-
ceipts Of currency from the interior. Accord
ing 10 the known movement of money in the
current week the local banks have gained more
than 100000 in cash. despite gold shipments
OF S6J00.000 Sterling exchange has declined 10
points in the last two days but demand rates
still are at the level at which gold can be ex-
ported. and ii is probable that further amounts
of the metal will go out next week. though the
movement 20 Paris may be interfered with by
the stronger tendency Of French exchange on