New-York tribune., 1909-05-24
FINANCIAL MARKETS
BULLS CONTROL STOCKS.
Money Easy and Bank Holdings
Larger, Despite Gold Erports-
Railzcau Earnings I'm prOCe.

| craze FOR the prominent issues stood at 126lS'
while the high record for the industrials was
renorted on Nav 49, with the average for the
leading shares at 1850 Since May 13 railroad
| securities have shown great irregularity, while
the tndustrials have presented frmer tone, the
host snecuIation having been in the latter group,
owing 10 the better opportunities offered for
nrofts on the long side of the market, the opera
tions in the metal stocks having been especially
noteworthy. Steel common selling Saturday
OF the week Just closed at the best figure in the
history Of the United States Steel Corporation
and at an advance Of 10 points over the price az
which the employees of the concern recently were
invited 10 invest their savings in the security.
Saturday week ago the average for the rail-
road stocks was 1855, followed by decline on
Monday 10 1251s and an advance on Tuesday
and Wednesday to 1851, a decline on Thursday
20 125.Os, an advance on Friday to 12515. with
the closing on Saturday at 1885 Industrial
shares ended at slight improvement. In recent
day.s there has been no active demand from the
so-called public for stocks and the absence "f
g crazv speculation on the part of the outsid-
ers though disappointing to the interests who
wish to sell their holdings at fancy prices, has
helDed the teClIllCdl pOSAllOl VI SPCOAiNNiotA $3.50
enparentlv strengthened the chances of better
quotations later in the season. barring the de-
veloDnlent of conditions adversely affecting the
intrinsic value Of investments. There has been
Of course a large amount Of distribution at the
high levels recorded. but from what may De
gathered in well informed quarters the greater
amount Of the stock held on speculative account
b. the substantial market operators remains IN
tact That the leading interests are un"lillhS
10 see materially lower values at the moment Is
reflected in the character Of support 1ortncolh-
ing on indications Of bear pressure. as instanced
in Wednesdays market following the announce
nlent of the death of a fnanCier who for many
years had been most actively identlhed WIN
Wall Street activities. Efforts were mace on
that day by certain element to bring about
slump in prices but the decline was conflneo 10
unimportant figures with complete recoverleS
in most issues before the close OF business
A large amount Of money is moving into at
traCtive mortgage issues, but the general leF9I
Of shares is too high TO appeal TO investment
capItal The WELD on the greater number OF
Arst class stocks Is relatively small. while the
same thing may be said OF many OF the hgh
grade bonds quoted on the exchange, the chief
demand for the latter being for the lower priced
securities OF this class and the offerings by bond
houses Bankers find no difficulty in disposins
Of The bonds taken from the transportation com
NAMES for refunding and other purposes, ana
the amount Of new issues placed since the hrst
Of the year suggests that 1909 Will be a recorA
breaker in the output OF SeCuTllleS OI lilS tIaI
acter Money in large volume recently has been
nlaced for the account of Western interests IN
the attractive offerings Of local bond firms. while
there also has been some buying by Europe with
the promise Of a heavier investment movement
from this source IN the near future. The in
crease in foreign gold holdings finds reflection
in a better demand abroad for investment Sc
curities and there is good reason why the
operation should not extend TO this market.
though in recent weeks speculative TRANSACTIONS
in American stocks have been in great part on
the selling side the purchases made in Wednes-
dav's operations being the first Of importance in
more than a fortnight. French investors are
buying Japanese and Russian bonds in London
while at Berlin easy money is increasing the de-
mand for high grade issues. The presence abroad
OF many of our capitalists and the forthcoming
European trip Of Mr.. Hartman are viewed with
interest IN the financial community In relation
to the possibility of important financing n
Europe of the needs of American railway com
panies. and il is believed that in the months 70
come foreign buying of our securities for invest
ment account, together with the usual autumn
increase in our exports of domestic products, not
only viii offset the large shipments OF gold that
have beer made from this country in the last
few weeks but also be effective in turning the
exchange market in favor Of New York to a
degree that will attract the metal to this side Of
the ocean in the fall months.
Since January l exports Of gold from the
United States have amounted 10 more than
A,VV
RueUOs Ayres Current sterling exchange con-
ditions suggest that further amounts of the
metal may go out. but the movement fails to
cause uneasiness here, owing to the low rates
for money and the large supplies Of idle funds
that are ready TO move to this centre from the
interior on the slightest indication Of higher
price for loans. Austria is increasing its gold
holdings, while the Bank of France is following
its usual practice of adding to its supply when
ever international exchange and monetary con-
o4fa he tS
ship of the metal amounting to more than
$500 100000, increase of S140 100000 as COM
pared with this time year ago. With the ex-
Ception of the Bank Of England, all the Euro
pean institutions have materially enlarged their
gold account in the last twelve months the total
holdings showing a gain 10 the amount Of up
ward OF S293.000,000. while the gold coin and
gold certificates in the United States in the
same time have decreased. Against our loss in
gold may be noted large expansion in national
bank note circulation, which stands at figures
in excess Of the amount before the panic period
when there actual need of additional
money. The gain since that time has not been
warranted by any requirements Of trade. but it
has served to foster speculation in stocks and
commodities. The banks OF the country have
added 10 their resources in the last year, but the
gain in loans has been excessive, that item for
all national banks, shown in the last cOmpila-
tiOn OF the Controller of the Currency. being in
advance of deposits 10 the amount of more than
s137 600 900. The chief part OF this increase is
represented in speculative loans and in opera
tons involving corporation financing the
actual mercantile demand being unimportant
factor in the movement The high rates for
sterling exchange and the slightly better money
rates here. as compared with those at the lead
ing foreign capitals. responsible for the
offering OF European money in this market, an
indication Of which is presented in the appear
ance of finance bills which Will mature a
time when the bankers calculate exchange will
be ma aterially under prevailing quotations.
iffla fr,rarn,ernenf Is rennrted In the cnrn-