New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-05
FINANCIAL MARKET
Foreign Houses Heavy Buyers of
Stocks on Local Exchange.

A sharp break in sterling exchange
quotations. heavy arbitrage buying by
foreign houses on the local Stock EN-
change. and the report that a large
amount of American securities. includ-
ing SJ0.Oo00O0 Chicago. Milwaukee &
St Paul bonds to be issued. would be
placed abroad, together with active buy
ing by substantial interests were re
sponsible for precipitate covering of
short contracts in yesterdays stock mar
ket. Prices enjoyed marked improve
ment. and among the prominent shares
maximum gains Of from to more than
IS points were common, Union Pacific,
United States Steel, Reading and Anal
gamated Copper rejecting the heaviest
buying by the shorts. who evidently
were somewhat alarmed over the ap-
parent scarcity of stocks. Prices for
American securities In the London mar
ket were higher, and foreign houses
bought more than 10000 shares on
srbitrage account here. the latter oper-
alton, together with the accompanying
decline in sterling rates, naturally en-
couraging bull activity and a retreat by
the bears: also commission house buying
to Z. moderate extent for outside inter
ests In view Of this Country's adverse
position in foreign trade heavy pur-
chases of American securities by Europe
would offset our falling off in merch8n-
disc exports and obviate the necessity
of further shipments of gold. and the
report therefore that negotiations are
under way for the placing Of large blocks
of our investment issues in Europe. If
true. should be the means of upsetting
the plans of spectators who have been
counting upon an indefinite movement of
stock prices toward lower levels. Trans
actions Yesterday were poorly distrib-
uted. and of the total dealings the
larger part was supplied by Anal
gamated Copper. American Smelling
Reading. Southern Pacific. Union Psci-
fc and United States steel. which fur
nished \. total of $4,000 shares out Of
a total in all issues Of 779. 92s shares
The transfers of money by the Sub
Treasury to San Francisco for the &C
count Of local banks. and the course Of
domestic exchange do not suggest the
Clearing House institutions on their
operations with the interior IN the cur
rent week In view, however, of the
absence Of gold exports and the calling
Of loans Saturdays bank statement
should show an improved situation al
this centre as compared with that re-
fected in last weeks exhibit, though It
ho4 in
in reserves will be large enough to war
rant the return of the money market 10
an easy level The banks appear to he
well satisfied with the higher quotations
now prevailing for loans, but the loan
market does not lend itself 10 sustained
bull speculation In securities If ma
terial advance in rates should develop
some foreign capital doubtless would
seek employment mere, and IT is well
worth noting that since the passage or
the British budget there has been con-
siderable amount Of buying or stocks
on the local exchange for London, the
movement indicating perhaps more
general demand in the near future for
our securities for English account In
tOIuEALtOil " an Iiit poS -A''A@S "a N-N-A-~
involved in the British budget it should
he borne N mind that q large amount
Of money representing funds collected
by corporations from security holders
against the income tax requirements has
been available for use in the London
money market in recent months, and
that the withdrawal OF that amount in
favor Of the government will serve to
maintain rates at the British capital at
a firm level, especially as government
disbursements from the revenue already
collected and tina 70 be collected win
be spread over a vide area, with the
chances faHoring the movement Of such
FUNDS into Ire channels If trade rather
,nan their return 10 the money market.