New-York tribune., 1909-06-28
FINANCIAL MARKETS
WEEK'S STOCK TRADING
Money in Good Supply at Easy
Rates-SterIing Exchange at
Gold Smpming LeUel

the course of stock market operations in the
early part of the last week the movement wind
ing up for the time the wedding out process that
began in the preceding week and which had the
effect of placing technical conditions in far
stronger position while It encouraged g. revival
to some extent of good buying in securities that
had suffered material declines from their high
prices of the year The apparent completion Of
LIQUIDATION was followed by renewed purchases
for better quotations. and before the close quo
tations in the greater number Of issues showed
substantial recoveries from the recent low
levels despite selling movement in Saturdays
transactions. Money remains at an easy OASIS
and Just as long as present conditions prevail
in the loan market the chances Will not favor
a permanently depressed market for securities
There is at the moment little in outside condi-
tiors upon which to base transactions Tor the
decline but Of course, If speculation runs along
lines that were responsible for the recent col
lapse further sharp losses will be recorded with
the usual amount of suffering among the public
operators who are trading on small margins
with nothing in reserve to support their ac-
counts in DAYS of breaking values. wall street
does rot take kindly TO the suggestion OF the
Hughes investigating committee that all com
mission houses demand a minimum margin OF
90 per cent on speculative operations, but the
making of such a rate compulsory would be IN
the best interests of the Street and Of the pub
lie which il IS supposed 10 serve, though such
q rule might drive some Of the small houses out
Of the speculative business. Houses that do q
shoestring margin business are not desirable
members Of the financial community. And per-
sons who cannot afford to deposit 20 per cent
margin certainly cannot afford to speculate. The
Stock Exchange governing committee which is
made up Of broad minded, intelligent and ex-
perienced men who are anxious 70 promote the
reforms that will tend to strengthen confidence
throughout the country in Wall Street doubtless
will take active steps 10 carry out those sug-
gestions Of the Hughes committee which in their
opiniCr will work for the elimination OF prac-
tees that from time TO time have caused wide
spread criticism OF Wall Street methods. The
Stock Exchange offers facilities for legitimate
speculation, which is an important factor in the
countrv's material growth, but there have been
in the past and are at present q few men whose
actions have brought discredt upon the institu-
ton as a whole, as instanced in the scandals IN
connection with the Mcintyre, Brown and Knapp
failures.
Investment funds are not quite so active in
the bond market as recently reported, but bond
houses are handling a larger and more profitable
business than at this time IN 1908 while they
are looking forward to active volume Of trad
ing in the second half of the year, both on tho
Stock Exchange and over the counter Many
new securities will come upon the market be-
fore the close Of 1909, and It is not unlikely
that Europe will be a large buyer of our new
mortgage issues, owing to the large supplies Of
money abroad and the increasing confidence
among foreign capitalists in money and business
conditions in the United States. England. it is es-
timated has $4,000. .0O0 900 invested abroad. with
upward Of one-fourth Of that amount IN Ameri-
can securities, including about s60.00000O esti-
mated to have been placed here since July last
year, while France also holds an enormous
amount Of foreign securities, though Its owner
ship Of American securities is not heavy. The
setback received by the interests who have been
endeavoring to secure an official market for
United States Steel common on the Paris Bourse
should not discourage the expectation that the
thrifty Frenchn1en will SEND some Of their saw
ings 10 the United States for investment in our
high grade securities. nor should II discourage
the idea that eventually the Morgan people will
be able to overcome the red tape Of the Paris
Bourse and have the Steel issues listed for regu-
lar transactions. According TO the opinion Of
the best Informed bankers on foreign affairs,
there will be a marked increase in interest
abroad In our securities in the course Of the
next few years while they also look for a heavy
expansion in European and American financial
operations in Mexico. which contains vast pos
sibiities for Industrial development, reflection
Of which IS found in the movement Of Hartman
money into that country and the foreign interest
that is being taken in the Kansas City, Mexico
& Orient Railroad, now nearing completion BY
September the management of this property
expects to have $40 miles of connected track in
the United States, which. with that already
constructed in Will give lie C4OoS
to nine hundred miles. This railroad will be an
important factor in the development OF certain
sections of the Southwest and Of a large section
Of productive territory in the Republic Of
Mexico
Great strength in Union Pacific preferred
shares early in the week, accompanied by higher
prices for the common, suggested to some minds
a retirement of the preferred by its conversion
into common though no confirmation Of tho
theory could be obtained IN Hartman circles,
while the course of the issue at the close of the
week served 10 discredit the idea Of any develop
rnent in the near future favorably affecting the
security Union Pacific common is among the
few stocks that still return more than per
cent and as the prospects favor the prediction
that eventually the dividend will be on n higher
basis II is not surprising that the issue continues
TO be accumulated by discriminating buyers.
Baltimore & Ohio is in good demand from IN
vestors: also United States Steel preferred while
there has been no investment liquidation Of
American Sugar Refining because of the past
sins Of the company's management Prosecu-
ton of the company under the Sherman anti
trust law will not stop the refining Of sugar on
a profitable basis. Among the relatively low
priced stocks Chesapeake & Ohio and Chicago &
Alton ought TO share in any general bull move
ment that may develop IN the summer, despite
the fact that the Hawley interests recently have
not taken an active position in the market
There has been some silly talk about bad feel
ing between the Hartman and Morgan people,
but there is no actual evidence Of anything
Of the sort, reflection of which is presented
in the course Of Erie affairs, which are managed
by Hartman Morgan combination in a man.
ner that ought to be extremely gratifying TO the
holders Of the Erie securities
Current strength In the sterling exchange
market is attracting considerable amount of
European lending at this centre, but the offer
ing Of bills against such operations fails to sat
isfy the active demand fer remittance which is