New-York tribune., 1910-02-18
FINANCIAL MARkE
Up STRONG FE4TIRE.
Sterling Erchange Higher
7cith Exports of Gold to
South america.

substantial interests bought stocks III
Yesterdays market, and In the larger
mart of the five hours Of business the
tendency of prices was In the diIecuoh
of higher levels. Commission houses had
few orders for ordinary public account.
hnt they reported heavy purchases oS
big traders and realizing by people VINO
accumulated active lines in the recent
decline, the latter movement, however
falling to affect quotations, except 10
some extent in Reading, IN Whlch re-
action was due, owing TO the sharp al
vance in the issue IN Wednesday
+r,nsac+ions There was no more news
regarding Reading than on the preced-
ing day, but the Street continued 10 oe-
ljeye, and with good reason, that the
conlpanys hidden assets are enormous
and eventually will make the stock 1ar
more valuable than represented py 1lS
current market price. Present buyers OF
Reading common secure return on lle
investment of less than 312 per cent, and
it is quite evident that something more
than the present dividend Yield is re-
sponsible for the quotation at which the
issue is selling. United States Steel
common was conspicuously strong ana
there were no indications that the BANK
ing interests who bought heavy amounts
of the stock at recent low levels ndd pc
gun 10 reduce their lines.
Union Pacific. though less active than
Reading and Steel, enjoyed greater i'm
proyenent and appeared to be eHcep-
rioDally well bought. Wall Street ap-
rarently believes that the government
has made a poor case against the Union
Pacific company in its efforts 20 prove
that stock control of the Southern Pa
cific by the Union Pacific constitutes "A
merger of competing lines, and the lack
of interest now taken in the proceedings
before the governments representative
suggests that the financial community
correctly assumes that even if the Har-
riman merger does not come within the
law the Southern Pacific and Union Pa
ciffc securities viii continue to be valu-
able investments. The Street also be-
lieves that the decisions in the Ameri-
can Tobacco Company and the Standard
Oil suits viii not be rendered until the
fall and that the business Of the coun-
try therefore has new lease of life for
the next six or seven months. Reports
received yesterday from iron trade cen
tres showed no cancellation of orders
and pointed TO no coming recession in
the iron and steel industry.
Interior exchange rates on New York
90 not indicate the probability Of much
Of an addition. If any. to local bank re-
sources from out of town points in the
current week The banks have gained.
however, on their operations with the
Sub-Treasury. despite the fact that ordi-
nary government receipts are now run
.lng in excess of disbursements, and Un-
less there has been heavy expansion
in loans to-morrow's Clearing House
statement should make a relatively
favorable exhibit So far in the present
month there has been an excess OF fed
eral receipts on ordinary account Of
S120,226. while for the fiscal year to date
the excess Of expenditures shows a re-
6uction of S42. .435, $50 as compared with
the same time last year, and on all ac-
counts reduction of S35.5S3,o26 the
actual excess amounting 10 Stb,-- ,u-s',
against SOL ,S10,053 al the correspond
ing period in 1909. The Treasury's
available cash balance stands at SO.
go, ,426, decline Of S63071.3o7 from a
year ago. Receipts are now heavy
enough 10 take care of ordinary ex-
penditures. but the financing Of Pan
anna Canal payments doubtless soon VIII
result in a sale Of bonds, authority fo-
which was given at the last session Of
Congress. Sterling exchange was strong
yesterday, and showed an advance for
demand rates Of 40 points since the first
part Of the week The upward tendency
already has encouraged q resumption of
gold shipments 70 South America. and
unless Europe becomes heavier buyer