New-York tribune., 1909-03-22
FINANCIAL MARKETS
DULL DAYS IN STOCKS.
Prices Moue Within Fractional
Limits Money and the Gold
Increment.

TrTTTT7 "a
within narrow limits and representing nothing
bevond the varying ideas Of the professional
element In the last week the most acIlNeI9
dealt in securities moved. as a rule between
fractions with unimportant differences at the
close as compared with the final figures OF the
r,recedinr week net gains predominating as a
consequence OF traders operations commission
houses having few orders for outside account OF
for the substantial interests who were the I'M
portant factors in the advancing movements IN
1905 There was some investment business put
NOT enough 10 exert a decided influence on
values In view of the current position OF the
money market there is little incentive for ex-
tended dealings the short side OF speculation
and until rates for funds seek higher leNei II
is not thought likely there Will be a material
decline from the prevailing quotation level
unless in the mean time there should be some
Development seriously affecting confidence ana
intrinsic values. On the other hand, the posi-
ton Of the metal trades and the uncertainty
over the final outcome of tariff legislation natu-
rally tend to restrict business on the Stock
Exchange. and consequence the posslhllity
Of an active bull movement in the Immediate
future receives little consideration In wall street
circles though many brokers are advising the
purchase of good securities to hold for the time
when prices they assert ought TO cell higher
as a result OF hoped for better trade conditions
Underlying conditions in the business world are
sound and with the elimination Of the present
uncertainties it will be natural 70 count upon a
II
If the years crops turn out we'll but eXpecta-
tions Of any great advance in stock quotations
may not be fulfilled owing TO the relatively high
level at which values are now rul1ng-a level
which in the opinion of many conservative Wall
Street interests fully discounts any improve
nent that may take place in industrial condi-
tions in the course Of the current year. Trade
i'm movement doubtless will be accompanied by
higher rates for money, and the future or the
money market in its relation TO stock market
-,-oTT ~ 1nr1 dor
time
So far money rates have not been affected by
the outward movement Of gold, owing to the
generally light demand for mercantile and spec
ulative accommodation, but 1t is conceivable
that with q continuance Of the outgo of the
precious metal with possible further government
financing before the tariff bill becomes a law
and with g resumption Of a commercial inquiry
for funds loan quotations will move to higher
range especially as local bank reserves are by
no means large The chief provisions Of the
tariff bill as presented to Congress last week
re calculated 10 provide the government with
sufficient revenue to meet its growing needs and
to convert the present Treasury deficit into 4
surplus. but it doubtless will be a long time
before increased revenues from this source Will
become available. while in the interval, eXpen-
ditures will continue heavy and probably IN
excess Of receipts. though II Is encouraging 70
note that so far in the present month the rederaI
income has shown material gains over that IN
tba corresponding period a year 60 The deficit
for the month date amounts 10 SI5O5'llS
against S6.004,44S in the same time in 1908, but
for the fiscal year there is deficit Of SS7S65099'
con1pared with S33095.235 last year. Customs
receipts have increased q result Of heavier
imports of merchandise and larger withdrawals
Of goods In bond the gain in the import move
ment and the falling off in the exports OF do
nestic products and general merchandise being
reflected in the strength in the foreign exchange
market and shipments Of gold from New York
10 London. Exchange also has been materially
affected by the persistent selling Of American
securities for European account ever since the
first of the year. and by the difference between
money rates here and abroad. New York is the
chea pest money market in the world. and Lon
don is taking advantage of conditions at this
point TO increase its gold holdings and TO pay
its debts to South America at the expense Of
this centre.
An important development Of the gold move
ment in the last week was the taking of tho
metal by London joint stock banks in accord
ance with a suddenly adopted policy at the
British capital Of strengthening general gold
holdings in England Further reason for the
flow Of gold from New York may be found in
the defects Of our currency system. which under
certain conditions practically drives gold from
this country. We can increase our bond Sc
cured circulation. while the better form OF
money leaves our shores. This is point worth
the consideration of our legislators, who doubt
less at the next regular session of Congress viii
be called upon 10 make real reform Of the
present inadequate and unscientitlc currency
system Indications point toward further heavy
exports of gold in the immediate future. but the
speculative element in Wall Street shows little
interest in the movement and probably will pay
no attention TO il until it begins 10 affect loan
quotations. which have ruled at such low level
for so many months that certain persons in the
Street can see nothing ahead that may bring
about a radical change in the course of the
market. Six months money was put out as low
IS % per cent last week, and nine months ac-
comuodatior was reported at per cent, though
the general level was above these figures There
was ? good demand for commercial paper. but
offerings were extremely light, with sign of
an active revival in this department of the loan
market. while in call funds few important trans
actions we're reported owing TO the dulness on
the Stock Exchange. Trust companies are not
making call loans. the rates are too low. but
they are financing in moderate way time re-
ouirenents at prevailing quotations On small
loans rates are fnucn better than those quoted,
but the inquiry is extremely limited. It is not
considered likely that money rates will rule at
cheaper figures and II is believed that at the
first sign of an advance borrowers will begin TO
show some activity in securing funds for future
reuuirements General business conditions are
too quiet to develop expansion in the loan mar
Let AT the moment but from the reports that are
gathered from various parts Of the country SEN
tirnent is confident of industrial growth in the
months to come and gradual progress toward
the high plane of prosperity that marked the
country's affairs prior the panic Of 1907. Rail
road earnings and bank clearings show marked
Improvement over those reported at this time
last year. and while comparison is made with
period of acute depression the gains are never
theIess encouraging and significant of general
betterrnent in the trade situation.
Speculation in the metal shares lags because
of the position Of the metal trade but on all re-
actions fair buying is reported, and as far
copper securities are concerned many quiet out
right purchases have been made on the theory
that their decline has discounted all that is un-
favorable in the situation Low prices for COP