New-York tribune., 1909-07-09
FINANCIAL MARKETS
BONDS SHOW 4CTTFfTf-
Stocks Hcauy Under Traders Press
mc-Crop Report Discounted
Money Easy.

Stocks we're inactive in the best part OF the
day on an irregular movement OF prices with
the general tendency among the leading issues
in the direction of lower quotations until the
publication OF the government crop report when
some Improvement was recorded Final quota
ticns, however, showed more net losses than
gains, though the declines a rule were con-
fined TO unimportant fractions. Overnight con-
sideration OF the remarkably favorable ccndi-
tions in the agricultural sections of the country
may bring about increased inquiry for stocks
in to-day's market, as estimates OF the years
harvests based upon the percentages furnished
by the government indicate total wheat yield
4 per cent better than a ten-year average, Il
corn crop larger than ever recorded in the his
tory of the United States and return Of oats
heavier than in any preceding year with the eX-
ception of 1902. Winter wheat of which so little
was expected early in the season, has improved
to a wonderful extent, and its July condition
os S24 ranks the crop among the four heaviest
in the last ten years, while spring wheats -e
ported condition of 927 is, with the exception
OF that OF 1904, the best in the last eight years
Though prices improved throughout the list
following the receipt of the crop report, trading
continued narrow, and before the close further
beaviness developed on the cessation of buying
by the shorts and on the absence Of response
from commission houses to the encouraging har-
vest news. United States Steel was relatively
firm throughout the day, while American Smelt-
Ing gave exhibition OF strength wholly lack
Ing in other parts Of the so-Caied active list,
advancing a on buying that was accompanied
by rumors Of an Increase in the dividend IN the
eutumn. Reading was down more than point
az the close: also Brooklyn Rapid Transit,
Southern Pacific Union Pacific and Wabash pro-
ferred. The bond market more active than
that for stocks and in many issues, notably the
Interborough- IN metropolitan 41zs the Southern
Pacific 4s, the United States Steel reTunding IS
and the Southern Railway As and 5s. the buying
was exceptionally good particularly In the last
named The advance in the Southern Railway
bonds strengthened the belief of early re-
sumption of dividends on the company's pre-
ferred stock
Wall Street interests who have stocks for sale
are counting on the Favorable government crop
report and the end Of tariff discussion to create
a better outside demand for securities, and the
recent persistent strength of prices In the abb
sence Of an active public inquiry evidently re-
fleets the efforts of these substantial operators
10 bold the market a high level pending the
development OF stimulating factors. In con-
servative circles it is believed that purchases
made at current quotations will not show ma
terial profits in the summer months while 1t is
thought more than likely that the tendency in
the railway shares soon will be toward a lower
rarge as consequence OF the distribution now
under way and that which Will take place on the
appearance of any demand as result Of the
many encouraging indications of industrial
growth throughout the country. Stocks have
been advanced in anticipation Of the improve
ment that is taking place in the business af-
fairs of the nation and OF the bright prospects
Tor large harvests, but in view OF the desire Of
prominent holders to secure their profits and of
the approach OF the time when money rates must
move TO higher figures II is not reasonable 70
predict further heavy gains from prevailing
levels especially in the railroad issues, which
are selling near the best prices of the year and
in many cases at the highest quotations ever re-
corded, with their investment return too small
10 attract buying for permanent holding First
class industrial shares are more attractive at
the moment than the railroad stocks, and 1t is
not unlikely that on any decline in the general
market this group OF securities Will be taken by
the most discriminating buyers. particularly
such issues as United States Rubber preferred,
United States Steel preferred and the railway
equipment shares.
There is a better demand for money at the
West, as indicated by the tendency OF domestic
exchange TO move against New York, while the
position of the sterling exchange market sug
gests further shipments of gold to Europe and
Argentina, despite the somewhat easier rates re-
ter are due to the transfer Of European funds 10
the local market. owing to the extreme ease in
Iponey at the British capital a reflection OF
which is presented in the offering of American
bills in the London market against which sight
drafts are sold here. an operation equivalent to
the sale of finance bills at this centre The
Bank of England made no change In it's mini
mum rate Of discount yesterday, but showed n
large gain ia it's weekly return of holdings. with
al Increase In the proportion of reserve to lia-
bility of more than per cent. compared with
a week ago, at 1882. against 1923 in the cor
responding time last year.