New-York tribune., 1909-03-23
FINANCIAL AFFAIRS
STOCK T4LUES 4DV4NCE.
Foreign Houses Buyers IN Loc01
Mqrket-Heary Gold En-
gagements.
gagementS.

HIGHER r7-ices for American securities in Lon
don and active huving here for foreign account
were effective factors in shaping the course ol
values toward a better quotation level IN 'le
early operations The improvement Of the fore
noon continued in the subsequent dealings. and
at the close net gains of from l to more than
per cent were recorded throughout the list OF
prominent shares the movement failing, now
ever TO attract any material increase in COM
mission house transactions. The heaviest buy
ing came from the shorts. the extent Of the ad-
vance on the relatively light trading rejecting
an Unexpectedly large bear account, especially
in Reading Union Pacific, Amalgamated copper
American Smelling and United States Steel COM
mon An advance in the price of copper and
the failure Of the Supreme Court to hand down
a decision IL the commodities clause case were
brought forth as arguments for higher prices
while the large engagements Of gold for export
passed without notice far as Stock Exchange
dealings were concerned. All the standard
shares were strong features, though their
strength was based almost entirely upon the
operations of the professional element Ihe
DAYS gains naturally created a more optimistic
sentiment in speculative circles regarding the
future and traders apparently made up their
minds that the various uncertainties in the gen
eral situation had been eliminated and that the
country's business Immediately would begin to
boom on the theory that, irrespective OF changes
in the tariff bill before its final adoption by Con
press merchants would not be far out Of their
reckoning in going ahead with commitments for
the future on the basis of the bill as presented
last week. Iron and steel men, however, dd
not indorse the Wall Street point Of view Wall
Street was In the discounting mood, forgetting
that stock values already at a high level
and that there is no disposition 'on the part or
the public to buy securities for speculative ac-
count at current prices. The general market
closed strong. Ten issues supplied the greater
part of the total dealings.
Heavy engagements of gold for export to Lon
don were made yesterday without appreciate
effect upon the local money market, which re-
n1ained inactive. with call loans ruling at IA
per cent and time funds at from ~ to ia per
cent. according TO the period Total shipments
l,v to-dav's steamer will amount to S',3JDUOD,
but in view of the favorable showing in last
weeks bank statement no uneasness is felt over
the position of the loan market at this centre
even with a further large outward movement OF
the yellow metal. The interior continues to
send currency to this point substantial gains
are recorded on new gold production and gov
ernment payments TO the banks are still in eX-
cess Of federal Treasury receipts, these factors
forming a partial offset to conditions in the
foreign exchange market, at the moment, at
least And an additional Offset TO the foreign
demand for gold IS found in the staGnation IN
the money market. There is no important in
oufry for accommodation, either for Stock EX-
change or mercantile account, a reflection Of
which is presented in the large decrease N
loans reported in bank operations in the last
week and the relatively small net gain in this
item since the first OF the year. amounting TO
only a triie more than S2S,OBtUDO. Though
business conditions throughout the country are
sound and gradual improvement is noted in the
volume of mercantile transactions, merchants
and manufacturers are not active borrowers OF
money here. Their immediate needs are financed
at home while their commitments for the future
are extremely limited and impose no burden on
the home banks, which only not with
drawing their balances at New York as is Gus
tomary at this period Of the year, but send
ing surplus funds to this city in round amounts
The DEVELOPMENT however. of a real active de
mand for money from business centres with an
extension of the gold shipping movement and
possible Treasury financing would seriously up
set the calculations of the people who are look
ing forward TO a long time Of easy loan quota
tionE.
The Bank OF England secured the South Afri-
can gold offered in the open London market yes
terday, but change reported In money
rates at that centre. The price OF money abroad
is higher than IL is here, with the chances ia
especially If the troublesome Balkan situation
passes as a disturbing factor lines fore
shadowed in current advices from European
capitals Until yesterday there had been no
recent foreign demand for our securities and
in the last two months sales for London ac-
count have been heavily in excess of purchases
the selling movement having contributed the
strength in the sterling exchange market. but
il is than probable that with the develop
ment OF cheaper foreign money and the elimina-
ton of political uncertainties the other side
OF the water American stocks and bonds viii
find a better market in Europe There Is a
steady, though light, absorption OF railway
mortgage issues on the Stock Exchange and
the counter, and bond houses are counting
upon increasing demand in the second half
OF the year. when. il is expected tariff Iegisla-
tion will be thing OF the past and general
business will be on normal basis.