New-York tribune., 1909-06-04
FINANCIAL AFFAIRS
SHARP RISE IN STOCKS.
Sensational Gains in Southern Pacific
and Steel Preferred Money
Rates EaSu.

Transactions in Yesterdays stock market were
heavy in volume on a movement Of values that
showed decided strength. sensational advances
being ertoyed by several issues. notably SouthA
ern Pacific and United States Steel preferred,
the latter closing at net gain of 57s. against a
maximum gain Of SIS. and the Hartman Sc
curfty at a net gain of SIS. against maximum i'm
provement of the amount. The advance in
Southern Pacific was accompanied by rumors
Of an increase in the dividend and a report that
the directors of the company were working out
a plan by which distribution Of its oil lands
would be made lines similar to the Great
Northern operation in ore certificates two years
ago but officially no news regarding the prop
erty forthcoming, except that the dividend
would not be changed until Mr.. Hartman re-
turns from Europe. As a solid per cent stock,
with the promise of eventually going to . higher
dividend basis, Southern Pacific recently has
been ruling a relatively low level. and aside
from the possibility Of a melon cutting the
appreciation in the price of the security is fully
warranted by its intrinsic worth. And the same
thing NAV be said of United States Steel pre-
ferred the merits of which frequently have been
referred to in this column. Investment hold
ings Of this issue larger than at any time
since the formation Of the corporation, and as
consequence the floating supply is limited to an
extent that makes possible a marked rise in It's
price upon any urgent demand for IT, as in
stanced in yesterdays market. The placing of
Steel shares in the French market and further
indications Of growing interest abroad in Ameri-
in home circles over the position Of industrial
affairs in this country and have attracted heavy
buying Of stocks by the public. both for invest
ment and speculative account. though the invest
ment transactions have been confined to the
few. shares in which reasonable income can
be secured on the basis Of present prices. All
the metal issues were strong yesterday espe-
cally in the late trading when the general mar
ket showed best strength in spite Of heavy
realizing sales, Reading being the only active
In 1F41i iT1oran 1t
reaction. Steel common closed at a net gain OF
two points on a business Of more than 100000
shares out Of a total in all issues Of 1451 asa,
OF which fifteen stocks supplied than
100000 shares. Technically, the market does
not appear to be so strong as it was a few days
ago, and the development of a fair sized reaction
in the pear future would not surprise close fol-
lowers of speculative movements.
The amount of money in circulation in this
country increased in the last month 81 999 2S2,
made up in great part of gold represented by
certificates for the metal, and compared With
the same time year ago the net gain amounted
TO s72480,117, ef which S3l,6S5530 was supplied
by gold and s25,305.1S3 by national bank notes.
Silver certificates increased $22,733,673 while
there was a decrease in gold coin and silver dol
lars. Total circulation outstanding on June
$31Os.662, ,4O6, against $S16.266 721 at the
time OF the resumption Of specie payments.
increase of 81 292 4056S5 Of which 81 303 1866
was in gold coin and certificates s6O7 2s2, $50 i'll
silver certificates, silver dollars and subsidiary
silver. and $34S417,9 ,9S3 in national bank notes
Circulation per capita on June l was larger than
at any corresponding time in the history Of the
country, amounting to s35 01 estimated
population of Ss.S06000. The amount of money
in the country is ample for the needs of trade
but unfortunately our currency system does not
provide that elasticity which is such a helpful
factor in preventing extremes in rates IN the
loan market. while il encourages expansion in 2.
bond secured circulation that serves to promote
dangerous imitation and to increase foreign gold
holdings at expense. London, Paris ana
Berlin discounts advanced yesterday, the London
market being influenced extent by the
unfavorable return of the Bank of England.
which showed percentage of reserve to liability
OF 45.5, against 47.S4 week ago. 50S2 at this
time last year and nine-year average OF 1875.
Heavy borrowing from the bank in connection
with speculative requirements, June interest oI.-
erations and Withdrawals of gold for the Cont
nent appear to account for the decline in the re
serves and the maintenance of the minimum rate
OF discount at 2h per cent but the outside
inquiry for gold has been checked while the
commercial demand for funds is light, it is not
considered probable that yesterdays slight ad.
vance in British money quotations foreshadows
a permanently frmer market
Paris exchange on London again is higher and