New-York tribune., 1909-03-15
FINANCIAL MARKETS
DULL DAYS IN STOCKS
Prices Irregular and Short Interest
Luge-Position of Money.

of business
Commission houses are not operating 1oT inc
account of the public; the substantial interests
who were active factors in the bull moF@ihell'
in 1905 show no disposition TO resume desieS
sive transactions the long side OF speeuia-
ton. and the ordinary professional element Is
not inclined to make extended commitments
o,+bo- |or the rise or for the decline though It's
sentiment as a rule is bearish. The fact that
money is so easy naturally works against nm
portant bear movements, while, on the otnel
hand the relatively high range at whlch tiie
ereater number Of securities are selling al
+i,,o ~ uncertainty over the new seasons crops
and as TO the effects upon business of tarln reao
iustment, tends TO discourage activity alohs ou'i
lines In the last week gossip was heaFd III
some quarters that prices would not go indue
RALLY below the current level, and 1t was as
serted that in the near future there Wouio ue
-a1-ival Of interest in speculation for the rise
but such gossip founded on nope ratheI
than on any actual knowledge that Dun ooolh
is about TO develop. 1t is ,oeI1eVed ina III.
tariff will be changed in the interest OF amer
,can Industrial prosperity. and on the basis OF
the rresent condition OF winter wheat announcer
favorable crop year is promised; II IS -Fecos-
nized that fundamental conditions IN THIS couh-
Try are sound. that the supply or money III tiie
banks is heavy and that, compared WIN 'lie
industrial depression of year ago. the nation
business is improving but in view OF the FACTOR
Of uncertainty that must enter all calculations
regarding the future II hardly appears sale |"
advise the purchase OF STOCKS on Hldi ei0 a.
This tuncture unless such margins are large
enough TO stand the strain OF possible passing
fluctuations on the down side OF the market
In most minds there is little doubt thal secull
+ies eventually will reach higher level put
before that time OF before a sustained upward
movement begins there may De chaiiceS ~
secure stocks at cheaper figures
According 10 the views OF many careful OBJ
servers prices have more than discounted the
Improvement that has taken place IN the posi-
tiop of money and business since the panic
days while from a purely speculative point OF
view quotations have not discounted the ue-
n1oralization in the metal trades and the uncer-
taiuties involved in tariff readjustment Bear
speculators maintain that as there has been no
substantial decline in values from the top point
Of the year. recorded on January ?, When prices
were higher than they had been in more than
twelve months quotations should move 10 a
cheaper level and apparently the chief obstacles
10 such a movement are the low rate Tor money
and the large amount Of stock in strong handS
On the investment side of the market there is
nothing that need alarm holders Of securities
and nothing that need discourage the invest
ment of capital at ruling figures. There are
many good opportunities for the placement or
money for permanent income yield. and there IS
nothing in sight that will drive American ran
road and industrial corporations Of merit into
bankruptcy The future is bright with promise
for actual buyers of attractive stocks and bonds
and the prospects favor materially higher prices
for our investments at this time year hence
Confidence on the part Of small capitalists In the
future of the country's industries is reflected in
the purchase Of odd lots for investment account
and the refusal Of holders of securities that
have been paid for TO throw their possessions on
the market at the behest Of speculative Hanip-
ulators The latter class Of operators endeav-
ored last week to break the general market by
circulating false stories regarding the Erie com
pany and while they able 10 bring about
some liquidation in the Erie securities they
failed TO induce any selling Of importance else
where in the list for the good reason that in
vestors were not concerned with idle tales and
had 10 mind to encourage bear market based
on prevarications. The Erie company is in a
far stronger condition than II was few
months ago and its earnings are increasing at a
rate that more than meets fixed charges, and
reports put out with the intention to make the
public believe that the road will go into re-
ceivers' hands come under the same head as
those that a few years ago were directed
against the credit Of the Brooklyn Rapid Tran
sit Company. and which were followed by Grim
inal prosecution against the orginators of the
attacks.
Though money continues easy and probably
will show no great change in this respect in
the immediate future. It is not likely there will
be a protracted period Of cheap funds. owing to
the probability OF a gradual increase in the mer-
camille demand for accommodation the need of
new Treasury financing, further large issues OF
securities gold exports, crop necessities later
IN the season and increased speculation in
stocks when tariff readjustment is out of the
way. A large additional amount of gold was
sent TO South America last week, while con-
siderable sum exported to London, the first
shipments to the British capital from New York
since June 1907 with indications in the foreign
exchange market of a further outgo 10 that
centre. Foreign commerce statistics and the
lto,,idation Of American securities for European
account in the last two months furnish adequate
son for the current strength in sterling rates;
also the difference between money rates here
and abroad quotations at New York being under
those at Paris, London and Perlin, though the
position of money at the French and British
capitals does not demand the importation Of
the yellow metal from the United States. Cold
is going out on a normal exchange basis In
payment Of accounts for which there Is not a
sufficient supply Of commercial bills in the local
market the scarcity Of exchange being due 10
the demand for remittance on increased i'm
ports of merchandise from abroad and the fall
ing of IN export trade. The official state
ment Of the bureau Of statistics for the months
Of January and February shows a decline in
exports OF domestic products of $685., sos 1t
is likely the total decline in all exports for this
period will reach upward Of s90,000000 in the
face OF a material expansion in the import
movement and It is therefore unnecessary to
look further for sufficient reason for the ad-
vance in sterling that has made possible the
shipment of gold coin 10 London The fuu
figures for February merchandise movement
have not been received. but for the seven months
endel January 81 the loss in exports Of general
merchandise amounted iE value TO S157 10000,
as compared with the same time in the year
before. Wheat prices broke last Tuesday,
consequence Of the government report showing
unexpectedly large supplies in farmers hands.
and though prices recovered, IL Is to be hoped
that the movement marked the end of the ex-
travagant speculation in the grain markets
which has so seriously interfered with the
port movement of breadstuffs.
Railroad earnings and bank clearings showed