New-York tribune., 1909-11-08
FINANCIAL MARKET
MONEY RATES E4SIER.
Industrial Stocks More an
Faror than Railroad Issues.


iatlVe operations within narrow bounds
until the danger Of high rates for money
no longer is q factor in the situation
Minor interests have been working for
higher prices in the industrial issues. and
10 a certain extent their efforts have
been successful. especially ia the copper
and railway equipment shares. the ad-
vance I'm the latter last week encourag-
ing the expectation Of better dividends
for American Car and Foundry common
and a resumption of dividend payments
or Pressed steel Car common and Amer
lean Locomotive common Marked i'm
provement has taken place m the bust
ness Of tho locomotive and car building
concerns. and the current outlook favors
the idea that the coming year viii see
new high records for earnings for all the
equipment companies. as the railroads
are I'm the market for rolling stock 10
greater degree than the most sanguine
manufacturers hoped for earlier in the
season. Amalgamated copper has been
pushed up on the talk OF combination
Of copper interests and - the eNpecta-
tion Of an increase in the dividend al
no remote period. but Al its present price
the stock more than measures a decided
advance in the dividend rate. which
doubtless VIII be made if the copper
trade beers out present signs Of
marked increase in the consumption Of
the metal
United States Steel common. acco~d-
ing 10 Street opinion. is on lis way 10
par. The issue has been heped by the
revival Of reports that II viii bo admit
ted 10 quotation on the oouiisse Of the
Paris Boursc. while the record breaking
business being handled by the Steel Cor
poration convinces the most pessimistic
bear that the stock will be- established
upon a : per cent basis early N 1910.
which. Of course. would justify its ad-
vance 20 loo. Extravagsut claims re-
gardinG the future price Of steel common
are being made by the followers OF the
speculation in the security. but il may
be well To bear in mind that the man
agement Of the corporation has record
for conservatism. that its policy Is 80
divert large amount from earnings FOR
improvements and betterments. and that
in the next twelve months the require
ments for this account viii be heavy
enough To make the directors think
twice before paying anything better than
per cent 10 tho holders of the junior
issue. Big margins should Ice supplied
in operations on the long side Of this
stock. As in the event OF any unfavorable
development the overextended long ac-
count IN il would be a serious menace 70
traders who are carrying the security on
borrowed funds
A general proposition thu industrial
shores appeal more 10 conservative
operators than The railroad issues, owing
IL The high prices ~ which the latter are
selling and the tendency To put out new
stock. as 2nstanced IN the case OF the
Pennsylvania. the New York Central and
the New York. New Haven & Hartford
but until there Is more certainty regard
iuc tho future course ~ money specula
ton IN All departments of the market
should be discouraged. The railroads
are in "a position 10 maintain current
dividends ard 10 make moderate in-
,Ieascs This situation. however, has
,orded I'm market prices. and there is
therefore litt .e incentive for the purchase
oi railway stocks Tor speculative profits.
and in the case Of The larger number of
issues little reason for investment buy
ing unless capital viii he satisfied with
"a small return. Mone- marke; condl-
tious have been working against the
market for mortgage securities. and in
ihe local bond market operations are
confined chiefly 10 the speculative issues.
which have good chance Of becoming
solid permanent investments New York
city bonds lave been strengthened by
tic defeat of Tammauy, and She new
administration can make the improve
ment permanent by rehabilitating the
citys credit which Tammany's bungl.ng
has seriously weakened
Money is easier in all departments. and
i speculation runs along in quiet man
ner in the next few weeks there VIII be
no disturbance in Wall Street Further
liquidation of loans against Speculative
commitments would help the situation.
and gold imports would be a boon, buc
Ecpe II the latter is fading away in spite
OF our larger exports uf merchandise
which az the port % New York las, week
showed a gin i'm value Of more than
$4,000. 900 over the corresponding time
in 1905. Interior demands for currency
are lighter. hut the local banks are los
ing large amount of money ou their
operations with the Sub Treasury. not
vithstsnding The fact that governments
disbursements continue 10 exceed re-
Cclpts. Government payments are not
confined TO AeW York. while payments
10 the government are far heavier a. this
centre than In any other city including
rot only heavy customs and internal
revenue, bur also amounts due by out
of-toWn points which are settled by
drafts on local institutions Can money
ia London is higher than in New York
and the Bank OF England is determined
10 replenish and protect its gold supply.
even II such an operation compels a
further advance in its discount rate. so
fociive in materially strengthening gold
holdings. though IL has checked the drain
for the account OF ether countries. while
the per cent rate Of the Imperial Bank
o. Germany also has failed 20 bring
about the Improvement hoped FOR in the
holdings Of the German institution. II is
possible that the Reichsbaull viii de
clare a 6 per cent rate al its meeting to-
aa,- Il, The event Of which th. Rank -