New-York tribune., 1909-04-21
FINANCIAL AFFAIRS
MOST STOCKS STRONG.
Reading and Wisconsin Central
Features Money Market
Unchanged.

STOCK market values were strong in the
greater part of the day. the only evidence n
weakness being presented in the early and final
dealings. when a number of issues, including
Union Pacific and United States Steel moved
below the closing OF the preceding day on real
izing sales and bear pressure. The heavy ten
dency in the first hour, however. was followed
bv an active commission house demand and
revival Of manipulation for higher quotations
bv powerful pools and individual professional
traders. especially in Reading, Wisconsin Cen
trail Baltimore & Ohio, American Can and Col
Grad & Southern in which substantial advances
were recorded Reading gaining more than
points and Wisconsin Central more than .
points There was news accounting for the
exceptional strength in certain issues but the
Street was flooded with the usual sort of rumors
thai accompany bull markets, including one that
the United States Steel Corporation was secur-
ing new business at a rate that would double
the earnings Of the current quarter as COM
pared with the first three months of the year
Steel common did not respond TO this generous
forecast OF the corporations activities. but the
general market was helped particularly Penn
svlvania, which handles a large proportion Of
the United States Steel Corporations tonnage.
The general market maintained its firm tone in
the early afternoon, but weakened before the
close, the selling apparently being induced by
the manipulation in Reading, which carried the
price of that issue to the highest quotation
corded since the bull ement Of 1906. when
it solo at the fictitious price of 164- AS
per cent stock Reading is extremely dear at it's
present level. Perhaps in the distant future it
will be advanced to S per cent basis.
There is however no indication that any change
in the dividend rate is contemplated at present
Splendid" manipulation marked the course of
this stock and Wisconsin Central The move
ment reminded the Street OF the John w Gates
operations of unhappy memory-for the public.
It is improbable that Reading viii sell
higher though ! per cent stock it is selling
40 points above its actual worth In the final
operations it lost points from its high point
Of the day on realizing sales. Wheat dropped
cents yesterday Some people are wondering If
stocks viii follow.
Local money market conditions showed no
material change yesterday. though a somewhat
firner tone reported in time loans. Bank
ers apparently are looking forward to better
price for money. and II is not unlikely their
pectations' will be fulfilled later in the season.
when the mercantile community will, according
TO current indications, become an active factor
in the market. Reports from most parts of the
country reflect slow Improvement In the volume
Of general business. and while the best informed
men at industrial centres Go not count upon
return OF trade to a normal basis in the near
future they are satisfied that throughout the
year our industries will move in a forward di
gection With the elimination of the tariff fac
tor there ought to arise d strong inquiry for
money from the merchants and tn; manufactur-
ers and in view Of this probable demand and
the possibility Of further heavy exports Of gold
Wall Street Is taking advantage OF the prevail
ing easy money market to advance securities to
new high levels. Stock movements are dis
counting industrial prosperity. When the busi-
ness world begins to operate in the loan market
stocks max decline consequence of i'm
rrovonaent in money rates. though the greater
number of operators believe that despite the
discounting process now under way values year
hence will sell far above the best figures Of
1903 And the public evidently is buying stocks
on the assumption that quotations will move in
that direction withou. material setbacks. Sc
curities are selling at about the best range of
the year and not far under the high prices of
January 1907. and in the greater number OF
instances quotations fully measure actual in
vestment values the latter fact. however pre-
senting no argument for bear operations at a
time when monetary conditions offer no opp1
sition 10 speculation for the long account. There
IS Of course the possibility of easy money lead
ing to dangerous imitation in the stock market,
but the suggestion of such development is not
encouraged in the Street
Reports received from Washington yesterday
stated that there a demand from banking
and financial interests for government
bonds for use as a means OF increasing national
bank note circulation, which already Is enor-
nous and which is stimulating speculation and
helping to drive our best money out of the
country. There is known necessity that re-
quires an increase in ineIastic bond secured
currency. The country needs an elastic credit
currency secured by gold and high grade COM
mercial paper constantly maturing, which would
do away with the familiar spectacle of money
rates running times to 1e0 per cent OF more