New-York tribune., 1909-12-27
FINANCIAL MARKET
LIGHT STOCK SHES.
Monetary Conditions against
the Theory of Easy Locn
Rates an 1910.

dications do not point to an extensive
enlargement in the trading in the i'm
mediate future, though in speculative
quarters there is the usual expectation
that following the January disburse-
ments there will be an active demand
for securities for public account. The
January reinvestment demand has not
amounted TO much in recent years, and
the fact that prices are now unusually
high. while the cost of living is so great
as TO involve heavy strain upon in
comes. ought TO discourage the theory
) that a big buying movement on the Stock
Exchange is about to develop. It is
quite generally admitted, however, that
in spite of the prevailing advanced levels
for securities further gradual improve
ment may be looked for in the new year,
without the accompaniment of a bull
boom in speculation. The present hold
ers Of stocks find in current conditions
no reason for liquidation, and apparent
/ ly the substantial interests who have
/ large speculative commitments are not
/ Yet ready TO convert paper profits into
/ cash.
/ Proposed new financing by corpora
tions is a factor that is occupying the
attention Of our leading banking con-
Germs, and it is not likely that the active
speculation for the decline will be per-
mitted until market has been found for
new. securities 10 be issued in the early
part OF 1910. Wall Street bankers and
capitalists are in position to control
- ge haf
they intend to exercise their power to
maintain stability in prices for months
10 come. It would require the develop
ment Of radically adverse conditions in
the world of money and business to up
set the plans Of the captains of finance
and industry The new year promises to
witness a tremendous emission Of new
securities for various corporate pur-
poses, and the banking community is
counting upon the sale of large blocks Of
mortgage issues to Europe, where Amer
fcan investments are steadily gaining in
favor. owing TO the sound condition of
credit here. TO the legitimate expansion
IN OUT industries and to the sincere ef-
forts thai are being made to bring about
q complete reform in our currency sys-
tenn. Congress may not enact new cur
rency laws at its present session, but
the work of education will proceed with
undirninished zeal. with the prom Sc Of
LEGISLATION in 1911 along lines best suited
10 the needs Of the country. Prospective
requirements Of railroad and industrial
corporations and the outlook for an &C
tive period in general business circles
do not encourage the hope OF easy
money especially as bank reserves ar
this centre are relatively low. Currency
should return from the interior in con-
siderable volume in the first two months
OF the year, though the movement doubt
less VIII be lighter than in former win
ter seasons, owing TO the increased de-
mand for accommodation at out of town
points incident to growing industrial ac-
tivities and TO the new fields that con
stantly are being opened for the invest
ment Of capital. Sterling exchange.
which has been abnormally high Tor
months and which has been q menace to
the money market, will be watched with
interest in the weeks to come inasmuch
as g continuation OF present conditions
. affecting exchange rates will accentuate
/ a situation that contains elements Of
/ monetary disturbance. Exports of gold
/ in the present year have amounted to
more than $104, 100000. The metal has
, gone out as a consequence of our un-
+ favorable foreign commerce IN respect
/ 70 exports of merchandise, which have
/ declined 20 the value Of SS,3S3. Al, against
/ an increase in imports OF $332. .169, AL
1 eleven months), and 10 heavy demands
/ for remittance on financial account other
than that involved in the trade balance.
Against the outflow of gold there has
been an increase in our bond secured cur
rency of more than $50 100000, q poor sub
stitute for the yellow metal Dispatches
/ received from Washington last week
/ foreshadow some government financing
. in the near future as q consequence of
the heavy drains upon the Treasury from
/ Panama Canal expenditures, and unless
/ Congress remedies at once the inequality
1 OF taxation on circulation secured bv
/ Panama bonds the Secretary doubtless
I viii offer short term certificates, which
/ are authorized by law to an extent not
/ exceeding 100000 600. Government needs
/ viii be q factor in the money market in
the new year, and they should be care
fully considered in present discussions
4 relating TO financial affairs. The work
/ ing balance IN the Treasury is below the
/ amount considered desirable, while the
same thing may be said Of the general
! fund. which includes deposits in national
! banks. and though the situation is not
/ alarming II suggests the necessity Of
= some form of financing to provide for
/ the heavy Panama payments outside Of
! ordinary revenue account. Government
revenues are improving and II is ex-
! pected that in the second half Of the
/ fiscal year federal income will be ample
/ to meet the general expenses Of the va
rious departments.
News developments last week affecting
4 the actual value Of securities furnished
! cheerful reading for the owners Of Amer
/ ican investment issues. Railroad earn
/ ings and bank cleariugs We're well in ad-
4 vance Of the results reported at the same
/ time in tie preceding year, when the re-
turns were beginning TO show marked
/ gains over 1897, iron and steel trade con-
/ ditions foreshadowed record breaking
activity in 1910 and Increased dividend
! declarations suggested d continuation Of