New-York tribune., 1909-05-29
FINANCIAL AFFAIRS
HE-4TY DAY IN STEEL.
Metal Shares in Demdnd-MO
EaSy and Banks Gain Cash.

4 large proportion of the total transactions in
Yesterdays stock market supplied in United
States Steel common, which in active de-
mand for local and foreign account and which
made a new high record for the year at 81 y
The strength in this issue naturally exerted a
sympat thetic effect other securities. though
the improvement s rule confined To frac-
tional gains a limited volume Of trading,
dealings in such stocks Reading and Union
Pacific rejecting a decided lack of interest in
speculation by the general public and the more
substantial market operators Public buying,
however. in excess Of sales for the same ac-
count, commission houses reporting some i'm
prOvement IN the inquiry based on the strength
Of the market shown earlier in the week in face
of active efforts bring about lower prices, and
upon the heavy speculation in United States Steel.
Some of the speCialties showed indication Of
strength and activity in the day, but the leading
shares, outside Of Steel, made a poor showing
Union Pacific for instance. closing at net gain
Of only Il on total operations Of 261O0 shares. In
the late afternoon. however, trading in many
issues increased to material extent, the
pansion in the business being due more to the
persistent buying of United States Steel than -
any other known factor. though the expectation
of strong opening on the resumption Of speCu
latiOn Tuesday encouraged operations for the
long account on a moderate scale in various
parts Of the list. Amalgamated Copper Arneri-
can Smelling and the metal shares in general
made a strong closing. while in the railroad list
'Chica go e. Northwestern, Great Northern Ore
receipts Rock Island and Brooklyn Rapid Tran
sit were features. The Wabash shares presented
the only evidence of weakness among the active
issues. Last prices as a rule at the best Of
the day In well informed quarters it said
yesterday that Chicago & Alton soon would be
come a market feature, and that all the Hawley
shares were being accumulated for Western ac
count.
Strength in United States Steel common
which has carried the price of the issue TO the
highest figure ever recorded, is accompanied by
the idea in few circles that the directors in
tend TO increase the dividend. Earnings Of the
corporation are increasing and the outlook for
new business is extremely favorable, but it
hardly appears possible that the directors Of
the concern who always have shown a most
conservative policy In the matter of common
stock disbursements, intend to make larger
payment 70 holders at the next dividend period.
At its present price the issue returns nearly ga
per cent Eventually higher dividends will be
paid. and much Of the actual absorption Of the
security in recent weeks has been the basis
the future. rather than the belief that the
management has decided TO increase the rate in
the current year The United States Steel Cor
poration is operating in the neighborhood Of 20
per cent of its blast furnace capacity, and at
the present rate of increase in orders il soon
will be compelled to enlarge this percentage.
The independent manufacturers of steel
joying similar Improvement, while the growing
demand IN the copper market encourages the
idea Of a speedy consumption of the large stocks
on hand and a better price for the metal, which
is ruling above 13 cents pound. Trade
reports received last night covering all sections
of the country furnished ample reason for
coura cement over the position of the cOuntry's
industries. This improvement, however, has
been fully reflected in investment values in the
stock market though the outbreak of bull spec
ulation yesterday suggested further appreciation
in prices az a consequence of the ease in money.
According the known movement of mon.y
in the week, the local banks have gained a large
amount Of money from the interior, the es1i-
more than 81. 900 600 It is quite probable there
fore. that to-day's bank statement will show d
further increase in reserves unless there has
been n heavy expansion in loans. which the
weeks operations in the Street do not Indicate
Evidently there is immediate prospect of
higher rates for loans while the chances favo.
the belief that money viii remain easy until tile
fall, owing to the large supplies in the country
and the general strength Of credit conditions
Sterling exchange strong yesterday, though
the supply of bills was heavier ewing to recenl
purchases by Londcn in the local stock market
and an increase in the outward movement of
grain. exports Of wheat. including flour this
week showing gain of SAB 915 bushels over Ia 81
week and 304,520 bushels over the corresponI-
ing time year ago Since the first of the
current fiscal year exports Of wheat have sbov.f,
a loss Of 27.99l,339 bushels and corn a loss of
l5.s35.7ss. In connection with the heavy, rno,,a-
ment OF money to this city from the interior II
is worth noting that large amount of the flr6s