New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-07
FINANCIAL MARKETS
STOCKS IN DEMAND.
Highest LeUeI for the Year Reported
Banks Lose Cash.

There was no evidence at the opening OF the
stock market OF the declining tendency that
developed in the last hour in Thursdays opera
tions. first prices showing as a rule advances
while throughout the best part OF the day the
general movement was in the direction Of higher
quotations. Trading heavy in volume
Commission houses We're active factors in all
departments. their buying orders being espe-
cially large in the Hartman shares. Northern
Pacific. the Steel stocks. Reading. American
Smelling Amalgamated Copper and St Paul
the last named issue contributing a substantial
proportion of the days total dealings. Strength
I'm St Paul encouraged increased bulhshness
on the entire list the theory that as some Of
the chief capitalists in the country are identi-
fed with the St. Paul company the larger in
terests still were working the long side OF
the market, and incidentally were accommodating
ST. Paul securities II may be pertinent 10 re-
mark that the large Wall Street interests accu-
mulate stocks when prices are on the bargain
level For the year ended June 80 the Chicago.
Milwaukee & ST. Paul earned about IL per cent
on its common stock. and at IT'S present market
price the issue returns 40 per cent, with no
immediate chance of an advance in the dividend
rate. Rock Island issues were eotive. strong
features; also Northern Pacific, American
Smelling. Republic Iron and Steel. New York
Central. Erie. Union Pacific, Wabash preferred,
Southern Pacific. Reading and United States
Steel Steel common not only made a new high
record. but exceeded by a substantial fraction
the highest quotation OF any preceding day in
the history OF the corporation. An advance in
Norfolk & Western was based on the expecta-
ton of increase in the dividend TO a per
cent basis, the rate paid prior TO the panic Of
1907. In the last hour the best prices of the
day, rule. We're made broad and active
trading. including heavy purchases for the
count of the outsiders. the bull argument being
the prosperity that is expected TO develop as a
consequence OF the new tariff law Foreign
houses. however, sold
The wave RpeCuiative pnthusiasTo that Ia
rolling along In Wall Street, without any sign
Of breaking, according 20 the optimsts who are
loading up with stocks at high prices. is being
carefully watched by students OF market affairs
who believe that IN spite of the favorable factors
governing the actual worth of securities the
time is not far distant when money market de-
velOpments will upset the calculations OF the
people who are carrying their accounts on Dor
rowed funds. II is true that millionaire opera
tors are behind the current movement, but even
the force of their resources will not be sufficient
10 maintain quotations AT high levels in the
event of disturbance i'm the loan market espe-
eialy If il is found, II probably will be, that
interests stronger than they, including large
institutions that accumulated stocks at lower
levels have been quietly distributing their hold
ings with the view Of reouying at cheaper quo
tations This consideration does not mean that
the bull movement is over that later in the
year prices viii not move TO better figures than
any recorded. but IL does however. convey the
thought that the general market is oaching
a dangerous level and is likely 10 run against a
period Of sitter rates for money, involving the
readjustment of market values 10 a temporarily
lower range. When the chief powers in the
Street believe the time has arrived for a sharp
decline there doubtless viii be opportunities TO
pick up some relative bargains. The in
money here and abroad Al the moment naturally
encourages the idea in some circles that there
can be no important advance in rates notwith-
sta nding the coming demands upon the market
incident TO the financing OF the crops and gem
eral business expansion; hut such an idea hardly
viii prove safe upon which 10 base opera
tions margins at the prevailing advanced
level Of Stock Exchange prices for more than a
quick turn. Stock market prices have a habit
Of discounting future developments In the last
year quotations have been moving up in ex-
pectation Of the improvement that has taken
place In our industries and that which is ex-
pected 10 take place in the months 20 come and
the present high range for the larger number
Of securities In connection with this dscounting
process is well worth the consideration OF peo-
pie who have funds available for use in specu-
lation and investment transactions
The known movement If money In the current
week presents unmistakable indications that the
terror Most OF the banks report an excess OF
shipments over receipts in the last six days
and II il had not been for moderately heavy
eceipts by = few institutions. influenced by
took market operations. the net result would
have been loss. the gain amounting to only