New-York tribune., 1909-07-18
FINANCIAL MARKETS
q. P. At RECORD PRICE.
L. S. Steel Touches 7S-Bank Re
SerUeS Increase Money Easy.

Stocks were strong and moderately active IN
the two hours of trading, the general level NOV
ing to the best average OF the year, while new
high records made by several issues,
notably Union Pacific and United States Steel.
which were the chief features of the speCula-
ton. Union Pacific at the close was within ~
points Of 200, price which this column fire.
Quently has intimated would be reached by the
security. and one which represents return Of
5 per cent to buyers of the stock at that level
Union Pacific on its merits and a stock of a
company Of tremendous assets and earning
power is among the few high class railroad
shares that have not advanced beyond the price
warranted by investment return, but OF course,
at any point beyond 200 It viii cease to be an
attractive purchase as a permanent income
yielder for persons who not satisfied with
any security that returns less than per cent,
though it is possible that in the future the divi
dend on the issue may be increased. notwith-
standing the high rate already paid. The COM
pany is earning at present almost double the
amount OF It's annual disbursements on the COM
stock, while II is receiving from its invest
ments in other properties amount equivalent
to 7.2S per cent its stock. its total income
from this source amounting to than $14.
100000 And this is likely to be increased
through the exchange Of its Southern Pacific
preferred stock for common stock, upon which
the dividend in all probability eventually will be
increased. Union Pacific. including its income
from investments is earning amount equal
to more than 16 per cent surplus after the pay
ment OF 10 per cent the common. Southern
Pacific stock moved up in sympathy with Union
Pacific the latter enjoying maximum
gain OF more than s points on buying by
houses that represent aggressive interests, their
operations attracting heavy covering of shorts.
Reading also a strong feature, while
increased dividend rumors gains were made by
Louisville & Nashville and Norfolk & Western.
On the general advance there was further quiet
liquidation that had no effect upon prices. this
selling being especially pronounced in the Har-
riman, Steel and Reading issues St. Paul was
in fair demand; also Wabash. Last prices were
near the best OF the day.
Bank statement figures failed both in the
average and actual figures to show the heavy
estimated loss in cash holdings. this item in the
average exhibit rising S1S50,100, and in the
showing Of actual conditions as of Friday night
decreasing trtfie more than $4,000, 000r against
an Indicated loss of more than S. 900 900, based
On the known movement OF money IN the
week. AS q result of ali changes reserve above
legal requirements increased $2.566.300 10 $34,
569 200, which compares with 52,728.4OO year
ago and $9,0SS 075 in 1907. There was q de-
crease in loans of $3,3S4105 in the average
statement and of s4,654,399 in the actual
showing Trust company and state banks not
reporting to the Clearing House also showed
reduction in loans and cash. The general
hibit foreshadows easy money rates throughout
the coming week, and 1t would not surprise
stock market followers If this situation in
money, which does not promise to last. would be
taken advantage OF to bring about an active
bull speculation IN securities. The foreign ex-
change market was hrmer yesterday, and in
foreign banking circles particular interest was
taken in the situation, owing 70 the unusually
unfavorable government statement OF merchan-
disc exports for the month OF June and the large
gain IN imports the latter being in excess Of
exports for the first time in any month IN the
last twelve years, amounting 20 S715S,1 ,104,
against an excess Of exports in the same month
last year Of $23, ,262 352. Imports heavier
than IN any June record. increasing more
than $4,000 600 over the corresponding period
in 1905, while exports showed increase OF
less than COG. For the fiscal year the eX
cess oe exports amounted in value TO t351,178,-
316, against an excess in the preceding year of
s666431,554. Total foreign commerce for the
twelve months amounted to S2,975. .075,600,
Exports of merchandise in the last fiscal year
decreased s19764s,49s. against an increase in
imports Of s217.606s00