New-York tribune., 1910-06-23
FINANCIAL MARKET
Money Rates Unchanged, While
Sterling Exchange Declines.

The prospects Of an early adjournment
Of Congress and weakness in the grain
market following reports OF rains and
lower temperature in the spring wheat
belt, were effective factors in inducing
covering of shorts in yesterdays stock
market, which in turn brought about q.
higher level of prices throughout the list
OF active issues. In Tuesdays transac-
tions the bear element overextended it
self on adverse advices from the North
west regarding the position Of the spring
wheat plant, and as consequence the
favorable dispatches received yesterday
from various points in that part Of the
country naturally caused certain
amount Of apprehension among the trad
ers in the stock and grain markets, who
operated on the preceding day on the
expectation that opportunities would be
offered 10 settle their contracts at at
tractive profits. As a matter Of fact,
SPECTATORS III both markets practically
were compelled to run for quarter.
Stocks were strong at the opening and
in the larger part Of the day, with sub
stantial net gains in the active shares,
correspondingly weak, d loss OF about
three cents q bushel being recorded.
Although the volume Of business did not
show q material expansion as compared
with the dealings in Tuesdays market
the trading was better distributed and
at times suggested accumulation by well
informed banking interests, especially in
the local gas stocks, American Sugar
Refining, Northern Pacific, Southern
Railway preferred, Reading, Union Pa
cific and United States Steel, the last
named issues being taken in spite Of
somewhat unfavorable reports from the
iron and steel industry. The general
action Of the market was favorable to
the theory that stocks are 4 good pur-
chase for long pull. Prices may go
lower before a sustained advance de-
velops. but quotations as q rule are at
4 level that has discounted the adverse
features in the situation, and they rep
resent for the actual investor a return
OF from 10 6 per cent on his money.
Strength in the local gas stocks at
tracted attention. owing TO the relative
activity in the issues. Consolidated Gas
has q strong investment following, and
the chances are that the company at no
remote period viii restore its dividend
rate to the level that prevailed prior TO
the S0-cent gas legislation, while Brook
lyn Union Gas IS held by people who sci
dom make d mistake IN their invest
ment operations The latter stock yields
at its current price e substantial in
come TO its holders, and II is generally
believed that the conlpany's large earn
ing power and its so-called concealed
assets are responsible for the speculs-
tive interest now taken in the market
fluctuations of the issue on the theory
that the favorable position Of the com
pany eventually viii be reflected IN
larger dividend Disbursements The
stock closed yesterday at Ia, against
1397s for Consolidated shares. Ameri-
can Sugar Refining, which always has
paid dividends and which viii continue
to pay dividends, closed at an advance
Of points on z better volume Of bust
ness than recorded on many days in re
cent months Another issue that at
tracted more than ordinary interest was
Southern Railway preferred. which en-
joyed q net gain Of 2 points. This stock
is on its way 10 q dividend basis.
Money rates were easy. though q trifie
hrmer than recently recorded Sterling
exchange declined under the influence
% heavier offerings OF commodity and
bankers bills London discounts fell 10
the lowest level touched since last sum
mer. going under 2 per cent. While
most bankers received Z quotation OF >
per cent, some discounts were offered
as low as Is for sixty and ninety days
On that basis money could be borrowed
abroad for three months at a cost Of
about 212 Der cent, making allowance
for the usual commission, as compared
with 8 TO 81 per cent for three months