New-York tribune., 1909-06-19
FINANCIAL AFFAIRS
STOCK T4LUES HIGHER
Money Rates Unchanged and Ster-
Ing Quotations Firmer-
Banks Gain Cash.

Stocks were weak in the early dealings on
selling Of the same sort as reported in the oper
ations Of the preceding day. but before noon the
movement was checked by the appearance OF
active support which induced covering of shorts
to an extent that brought about recovery
throughout the list Trading showed a material
falling off in volume compared with the other
DAYS Of the week the only real activity being
found in the initial and final transactions with
the heaviest business in Amalgamated Copper,
Atchison. Central Leather Reading. the HarTi
shares, United States Steel and New York
Central, the last named being especially active
in the last hour an advancing price level
This stock has been well bought in recent days.
and in certain circles Of the Street the impress
sion prevails that developments Of some impor-
tance TO the company may be expected, though
their character is not clearly defined, except that
somebody has told somebody who told II 10
somebody else that New York Central Union
Pacific deal is about 10 be consummated. 1t is
somewhat surprising that New York Central has
not been mixed up with the Wabash stories.
Why let the West Shore which belongs TO
the New York Central. take the Wabash? That
would be about as good disposition Of the
property anything yet suggested. and just as
fancifu except in the case of Lackawanna.
which probably could use the Wabash TO ad
vantage In the last hour Of business senti-
rnent was more cheerful in speculative quarters
over the chances OF further Improvement in mar
ket values the opinion apparently prevailing
that all the weak spots had been wiped out and
that technical CONDITIONS HaG Deen substantially
strengthened as a consequence Of the liquidation
of the last few days The short interest appears
10 be modera tey heavy. At the close the greater
number Of stocks showed net gains, with the
chief advances in Atchison. Canadian Pacific,
Central Leather. New York Central and Rock
Island. Steel common closed unchanged, and
Union Pacific presented a fractional gain.
According TO the known movement of money
in the week, the local banks have gained net
s2S62,000 in cash holdings, due chiefly to re-
,.f
town operations with the New York insttu-
tions showing q net gain to the latter of s3S44,-
600. Owing to the heavy stock market iquida-
tion in the last few days, it is not improbable
that the loans of the Clearing House institutions
will present reduction in to-day's statement Of
averages, though against the decrease on stock
market account there has been a substantial in
quiry for funds in connection with bond syndi-
cate transactions involving large payments on
account of new mortgage security issues. Money
market rates do not indicate any falling off in
reserves, and il is likely that the loans paid off
on speculative account have offset new borrow
ing TO extent which. with the gain in cash.
may bring about an increase In the reserve above
legal requirements. Foreign exchange made
further advance yesterday, rates ruling at a
level at which gold could be shipped to Paris at
a profit If Paris exchange on London was slight
" under the prevailing quotation, which it may
be well to note does not show the strength re-
ported week ago. Berlin discounts are higher
and il Is evident the German capital is making
a bid for gold London, where money is at a
relatively low level. with gold holdings of the
Bank of England materially strengthened a,
consequence of the recent large offerings OF
South African metal secured by that institution
in the absence Of any competition by Paris
which at the moment shows disposition q
add 10 its already enormous gold supply. II is
possible however. that the heavy liquidation for
Paris account in the London stock market will
encourage a material change in the Paris cheque
on the British capital and attract further
ports of gold from New York by the so-called
triangular operation.
Conditions affecting the earning power of rail
way and industrial corporations reported by
the mercantile agencies that cover all parts of
the United States show the sort of strength that
promises conservative expansion in gross and
net income in the weeks and months to come
Trade improvement is of a solid character, and
IL is backed by Indications OF large crops, out
side Of winter wheat. for which the prospects
do not foreshadoN bumper yield. From pres
ent indications no great area in the winter wheat
belt will be harvested in June owing TO the
lateness OF the season. Exports of grain
tlnue light as result OF the high prices pre-
valng and the apparent scarcity of domestic
supplies. and though the outward movement of
cotton is in fair volume the general export stu
alton fails to supply the amount OF exchange
necessary to offset the heavy demand for re-
mittance an influence upon sterling rates II
was estimated yesterday by foreign banking
house that in the last few weeks local bankers
had borrowed upward OF S75.o00.O00 in Europe as