New-York tribune., 1909-06-07
@FvyoRK DAILY TRIBUNE MONDAY. JUNE Z 1909
FINANCIAL MARKETS
NEW STOCK RECORDS.
e. S. Steel and the Paris Bourse-
Monetary Conditions.

Stool. market movements last week rehecreo
various favorable developments IN the general
situation. prices for the greater number OF IS
,,ae ,-arcinp 10 the highest points of the year
- =; .bs case Of several securities the best
figures in the history Of the Street were recoru-
ed AS A speculative influence and as deVel-
onrnent aging confidence in the value OF
Ar,e-5csn Investments. the announcement OF the
nl.ns for the listing Of United States Steel
sbaras in the Paris market overshadoWed all
.,.- factors IN the week, the disclosure OF the
,-,or,ent to introduce the stock of our great
-. ,7,,.+-,e1 cornoration to the French people
bs,ne recognized in the Street as news of wide
spread Significance TO the American securiues
markets. And the announcement was the mere
noteworthy as It came az time "hen 'u'
French Bourse preparing to deal IN the
stock Of the United States Rubber Company
another representative American Industrial con-
Germ. A large amount of United States steer
shares Is held in England and Holland, and the
chances are that the Frenchmen, who in the past
.,-. sbo,,n q nreiudice against securities.
soon will become large owners of steel common.
which ultimately will be placed on a hlgher
dividend basis, some enthusiastic persons oeheV-
ing that the appreciation in Its market Nalue
do,.-s an increase in the rate at the next
dividend period. In the month OF May the cor
noration handled larger volume or business
than in any preceding month since the panic OF
1907 and from current indicstiorS the demand
for finished steel products in the remainder OF
the wear will show substantial improvement on
a rising level of prices while the same thing
may be said of the independent steel manu-
"a arturers who are now enjoying their full share
of the resumption Of activity in iron and steel
AS the big steel corporation has proved its aoil-
ttv to maintain dividends under the worst sort
of trade conditions. IL is not surprising that
investment confidence in It's securities. especially
the preferred, is growing more pronounced nor
IS II surprising in view Of this fact and the slim
ulating influence of world market FOR the issues
that speculattve sentiment the shares is SO
extremely buflish even with quotations at the
best ever reported.
II is understood that the banking interests
who have made the arrangements to place Steel
common to the amount of *1000o.0oo on the
Paris Bourse accumulated the stock in the panic
times when the issue sold as low as 22 and
that the total amount Of 100000 shares Which
will be offered TO French operators averaged
price Of go allowing for interest and other ex-
renses And there appears TO be no doubt IN
the minds of the syndicate involved that the
Frenchmen will be active buyers in the neigh
borhood of prevailing quotations. Inc noauhs
supply Of Steel common at this centre VIII not
be seriously affected by the withdrawal OF the
stock that is 10 be dealt in at Paris. as IL rep
resents only per cent of the amount outstand-
ing There is q vast sum of idle money IN
France. and It appears safe to count upon the
opening of the French field for many olheE
American securities which will give to the Paris
market increased speculative activity. OF whlch
for a long time II has been sadly in need OWING
to the close manner in which investments are
held. the low interest returns on French secufi-
Ties and the small chance Of enhancement OF
dividends prominent French flnancier says
that French stocks are lifeless and that II theS
move 10 francs up or down the movement Gre
ates a sensation. Steel, he says Is the pest
possible American stock to introduce. particular
" as II has q favorable history, while its spon-
sors are known abroad the most conservative
and successful bankers in the United States
Moreover he adds the French people IN receH-
wears have been gaining knowledge of American
Industrial and railroad corporations. and they
have been particularly impressed with the man man
ner I'm which they weathered the panic OF ISV'.
the strength of underlying conditions here ana
the country's great power of recuperatlon ihouc-
ing a sentiment among the French SAVERS VI
money SO favorable to this nation that We may
look forward TO the placement Of large sums OF
French funds in attractive investments
wall Streets method OF inference apparently
convinces local spectators that steel common
will not stop at its current level "Llie N'hey 80
in the prevailing attitude OF the substahtiaI
financial interests reason 10 expect further ma
terial enhancement !n all parts OF the security
list II may he well to bear in mind ho"eFel'
that all bull movements are subject 10 "iue
fluctuations including sharp declines ana tha'
overbuying and overspeculstion always lead 10
dangerous collapse
Tn. bidding up process last week centred al
+ernatelv on different stocks, profit taking oelng
noticed in one quarter while quotations were
actively advanced in another, the latter opera
tion attracting a larger commission mouse Io'-
lowing than noted in many weeks, and encour-
aging the idea IN conservative quarters tnat
sneculation had reached point that ought TO
suggest extreme caution on t3e part OF traders
who had in mind the plan OF making big fort
unes on borrowed money at price Levels hlenei
than at any time in the last two years Inc
average Of the leading railroad and industrial
shares is now slightly below the records Of the
early mart of 1907 and under the high points
made in 1905 when quotations were at the best
figures ever reported; but this TACT, IN view oI
easy money and the many stimulating oullsh
influences in the situation affecting the intrinsic
va lue of securities, receives no consideration IN
sneculatiye quarters where opinion prevails
that the bull market will continue throughout
the summer without serious interruption Inc
money markets OF the world give no important
sign of any strain consequence OF the slec-
ulation that is under way al all hnanclal capl-
tails but the supplies of money available tor |
snecUIative PURPOSES however, not mex
haustibie and constant activity in the specula- !
tive markets viii bring about a condition OF |
affairs that will call for reduction In loans, |
with the usual effect upon accounts carried |
upon borrowed funds Speculation on the Lon
don Exchange in recent weeks has been active, !
and last weeks Bank of England return SHOWS |
an expansion in loans OF more than S15,OO0OOO |
in the last fortnight. with the proportion of re
serve to liability standing at the lowest point !
for this period Of the year, with only one ex- |
ception since June, 1900 The money markets |
will be worth watching from now on. especially |!
as foreign exchange continues to move against |
New York in spite of some Improvement in our |
export trade, and the offering OF foreign money |