New-York tribune., 1909-06-09
FINANCIAL AFFAIRS
H4RRIMAN STOCKS UP.
General Market Strong, Though
Less 4ctiue-Sterling Rates
LOTPr.

High grade railroad shares were strong feat
,,res in Yesterdays stock market trading. their
advance helping the general list IN WHICH now
oyer there was a material falling eff in buSl-
ness from Mondays operations. transactions
outside the leading issues amounting. as RUE
to 11nin,portant totals. The Hartman STOCKS
exhibited especial activity on q rising IeVei Oh
values Southern Pacific making new hlgh
record at I35, with n net gain or S9s, While
Union Pacific enjoyed a maximum advance OF
o1s and net improvement of l, the buying III
both securities being based in great part on the
expectation that the directors OF the southern
Pacific would vote to retire the companys pre-
ferred stock and to place the common stock upon
a per cent basis, at which the yleIo al us
current price would be about the same as that
on Union Pacific The result OF the directors
meeting was not announced until after the cIose
Of the market, but trading in the Hartman
shares continued active in the hnal trahsac-
tions. also in Reading. St. Paul, United States
steel Atchison Northern Pacific and Baltimore
g ohio the last named issue selling at better
r,rice than any recorded since the reorganization
Of the property. According TO the plan TOT the
redemption Of Southern Pacific preferred stocR'
holders have three options, which invoVe an
exchange of the stock for new az per cent
bonds and s2O a share in cash. the conversion
Of the stock share for share. into common Stoch
and the surrender Of the stock AT 10. AS ui9
nreferred stock sold at 1S5 yesterday. II is not
i,lre1,, tbe last named proposition viii receive
,ar+ic,1ar attention while, in view Of the prac-
ticaI surety that the common eventually VIII De
rlaced on a higher dividend basis ana wiz S1H
1,,a,,,, ,,oints above the prevailing lever, IL ID
not unlikely that many holders VIII eAci"heo
the rreferred for the common rather thah lor
~ per cent bond and a cash payment GOV
eminent cTop figures, showing q deCIiHe VI
nearly per cent in the condition OF Winter
wheat caused some selling in the late aIIeriio'-'
and in the absence Of aggressive support u"ue'"
avDarienced little difficulty in bringing ABOUT
5.y Though winter wheat yields promise 10 DO
1lnde,- the average it is encouraging 10 hote
high percentage condition In the spring "'eN
fields on an increased acreage
Sterling exchange IS weaker under the lhhu-
enca or a better supply of bills and at the cur
rent level Of rates shipments OF gold 10 EUROPE
q - ont Of the question regular exchahge
operation. Paris exchange On Lohuoh mas
moved to the point that prevents the WIN
drawal Of gold from the British capltal iot
French account while Paris money Is hhdlhs
investment in the London market ana aiso ls
reinp offered here the latter movement prom
Using to increase in volume with any apprecla-
able advance in loan quotations at this centre.
The large supplies Of idle money IN france
doubtless will become important factor in
he revival OF industrial activity throughout the
world and II is not unlikely that in the fall New
Yorl, will be able 10 import the yellow metal
from Paris and London in amounts large enough
10 offset in part at least, the heavy demands Tor
c11TT
Fast for the account Of the West and South in
connection with the gathering and marketing
~ The grain and cotton harvests. There ap-
,ears 10 be no doubt in the minds OF bankers
that the inquiry for accommodation for mer-
camille purposes will be most active in the late
summer and early autumn, while from current
indications ii seems safe TO count upon an ex-
tensiye use of borrowed money IN the stock
market throughout the summer. as well as in
operations involving the issuance Of new securi-
ties nv the railroad and industrial corporations,
and as local bank reserves are none too large
for the financing OF coming requirements q 4
much better price for loans cannot be avoided.
In addition TO the factors named federal Treas
,rv needs should not be lost sight Of. From
the tone of Washington advices IL is quite evil
dent there will be an issue Of Panama bonds |
and possibly a withdrawal of some OF the gov
ernment funds in depositary banks, though the |
relatively small amount OF deposits held for |
federal account suggests that any call that may
be made will be unimportant one. Govern |
ment revenues continue to improve as d conse- !
ouence Of increased customs receipts, and SO |
far in the current month income has exceeded |
expenditures 10 the amount OF sI,534734 as |
compared with q deficit in the corresponding /
time last year Of Ss25.015 the deficit since last
July standing at ss6,223.367