New-York tribune., 1909-02-08
FINANCIAL MARKETS
STOCK TRADING LIGHT.
Money Rates Frrser Here ard
Easier IN Lond0n-InUeStment
Situation Sound.


beyond fractional fluctuations. the chief excep-
tions being in the case OF Issues in which a
moderate speculative demand has been attracted
by rrnors Of railroad deals that have no basis
in fact Wall Street is hungry for real news, and
in the absence OF stimulating developments
traders sppear willing 10 swallow any story, no
matter how absurd il may be- II the street
cannot have the truth it is willing 70 play VIII
rurnors but so far the various fantasuc Ldles
that have been handled and rehandled nave not
attracted an outside demand for shares, though
they have helped certain interests 10 dispose OF
their holdings TO the speculative community at
fancy prices The general market IS extremely
narrow, and commission houses would Welco-llo
8 good sized break Il they thought such move
roent would bring about q public inquiry Prices
e+ tre current level are not attractive to tnves-
tors or spectators, and notwithstanding tti7
essy conditions in the money market euorIs 10
establish the general list on q higher ranse
meet with no response. except In q feW slOCAS
in which manipulation attaIns Moderate success
especially II such stocks as Denver q To
(=ranGe, the Gould shares. Chesapeake q Oilio
and Missouri Kansas & Texas Even these
issues no longer are cheap and, as mater oi
fact there are no bargains n any part OF IHe
market Stock market values have discounted
the Improvement that has taken place IN the
financial and business situation since the panic
and the more important financial interests VINO
were the chief power behind the ADVANCE OF
1903 do not appear willing TO operate for further
Of current uncertainties and the development
Of z more pronounced forward tendency IN the
country's industries The mere fact that STOCKS
are IN strong hands does not preclude the pos
sfbility Of lower quotations before oeciceo
upward swing sets in
Prevailing prices In the leading active railway
and Industrial shares well under the high
points OF January 2. but IN view Of the preced-
ing advance the decline since the hrst OF the
year has been unimportant- The expectation
Of z January rise was not fulfilled. and now the
ordinary operator who has commitments on the
long side OF speculation is waverfns between
liquideting at g loss in the chance OF settins
his stock back at q materially cheaper lever VI
holding on for the predicted Taft boom There
Is 50 much talk in the Street about Tart boom
that IL may Be well 70 refer to the DeceInoer
talk OF & January advance which taiieo 10
nnaterialize The head OF the administrator
will change on March 4. but there is no reason
to suppose that with that change there will be
any development that will promote a specula-
tive orgy ia securities. Conservative interests
believe that stocks high enough, and that
no GOOD purpose will De served by encouraging
reckless operations at the opening OF new ad-
ministration: and though attempts may be made
AT that time before lift the market, the
most experienced men In the Street DO not be-
lieve there will be any permanent improvement
in prices until the tariff question has been set
tied and other uncertainties that are hanging
over the market have been removed There are
some Issues, however, that at current quotations
stance Union Pacific. which is a solid 10 pei
cent stock; United States Steel preferred. St
Paul, PENNSYLVANIA, New York Central, Great
Northern and United States Rubber preferred,
while in the bond market there are many ex-
cellent opportunities for the placement OF in
vestment capital. From the investment point
Of view there is nothing in the situation that
need alarm holders over the value Of their pos
sessions, but the immediate outlook is not
couraging fo- marginal traders who are bank
ing upon an extensive appreciation IN quota
tons Though the copper trade is not In 4
strong position. the copper shares appeal to
buyers who afford to buy outright and
forget their purchases until the copper and
other industries return to normal hasis.
The metal trades less active than they
were in December and November, but a long
time view Of the situation presents reason
for discoura cement. And the same thing may be
said of the greater number OF our industries. It
is estimated that the steel mills of the country
are operating on average of less than so per
cent OF normal, against 81 per cent last Novem-
ber The same estimates place the consumption
Of copper on basis OF less than so per cent of
normal while production both Of copper and
pig iron is in the neighborhood Of new high
levels. Copper was reduced to 13A cents a
pound last week by the leading producers and
selling agencies. but the lower price failed to
stimulate an increased demand. buyers merely
operating for current needs and placing their
confidence In a further decline in the price in
the course Of the next few weeks There is now
every indication that there viii be q general
readjustment Of steel prices in the near future,
as a consequence Of trade conditions that have
brought about extensive cutting by the smaller
independent concerns that has materially affect
ed the operations OF the United States Steel
Corporation and other large companies II a
market for ones goods cannot be made at one
price common sense suggests readjustrnent to
meet trade conditions. The copper interests
have broken away from their 141z to lax level
and the chances are the big steel men will fol-
low suit. All prices are TOO high, except that
for silver. Railroad earnings and bank clearings
reflect slow improvement in general business
over this time year ago. when our industries
were beginning TO suffer from acute depression
and traffic men are confident that before the
end Of the first half of the fiscal period the vol
ume OF freight will be far in excess of current
returns. The railroads are not yet heavy buyers
OF rails, equipment and structural material
though they are figuring upon coming into the
market at no remote period for their reouire-
nnents, which have been long postponed owing
10 the uncertainty over the industrial future
In the higher circles Of finance the transporta-
tion companies find their credit wonderfully i'm
proved, banking houses showing decided will
ingness to float new securities issues at terms
which year ago could not possibly have been
obtained. II Is not unlikely that the issuance
Of new railroad securities in the course of the
next twelve months may be heavily overdone
Money market conditions both at home and
abroad changed TO some extent last week. rates
al this centre showing q frner tendency while
IN London an easier position was reported Can
money at the British capital which had been
ruling there as high as per cent was put out
with difficulty at 4 per cent, the decline re-
heving the local foreign exchange market OF the
strong demand for remittance and depressing
rates 20 level well below that al which gold
could be sent from here to London London
bought securities in this market to a small ex
tent which also served 20 weaken sterling rates
The frrner tone in the money market az this
centre due in great part to a further cali
by the Secretary Of the Treasury upon depos-
itary banks for large amount OF government
funds and To EEifhclraHvals tr-,st