New-York tribune., 1909-11-01
FINANCIAL MARKET
STOCKS ARE STRONG
Domestic and Foreign None
tary Conditions Improve.

W '"isi'S oNef tHe immaculate futUr6 Of
money In this country still serves to re-
strain aggressive operations for the rise
but Inc easier position OF call funds and
the movement OF interior exchange more
Ia faVor OF this city encourage a theory
IN speculative quarters that recent de-
oilnes have gone long way to discount
the rev unfavorable features of the mon
elary situation and that TRANSACTIONS fo~
hgher stock quotations may be under
taken IN cautious manner with con-
siderable certainty OF success. The
lower rates Tor funds are due TO the
heaVy liquidation that has taken place
III bank loans and to the Offering of
Cut-of-town money at this centre. but
conditions affecting morey are lot vet
strong enough to warrant the RESUMPTION
OF active speculation for long account.
though the rcadjustment Of prices of the
last few weeks to ! lower level involving.
the elimination of weak bull holdings,
las placed the market in a position to
respond to future favorable develop
ments in money and business
quiet speculation at this time will in
sure an active, strong market later in
the season, but an outbreak OF reckless
operations for the rise just now will i'm
peril the chances of future stability Ia
speculative affairs. The idea that there
is enough money for extensive transac-
tions in stocks on borrowed funds AT q
time when the business and harvest re-
oulrements of the country in the matter
OF capital are growing more urgent is
not sound, and speculation based on the
idea that the banks will take out emer-
gency currency for the purpose Of pro-
noting a sensational advance in securi-
TIES, though accepted in vCrenthusiastic
bull circles, is not justified by the atti-
tude of our bankers. The issuance of n
large amount Of So-callod Aldrich cur
r.ncy would be warranted II the actual
needs Of the business world could not he
handled by existing supplies, but any
output of banknotes now. based on the
demands of spectators, would lead to
disastrous imitation and the expulsion OF
gold from the country. There is enough
money for the conduct of industrial
operations Money is flowing into the
channels of trade and confidence prevails
IN business circles. Only the boarding of
funds and the development Of panicky
conditions would call for the practical an
pifcation OF the emergency currency law
There is not the slightest indication tha /
such necessity will arise
Efforts TO inject life into the general
market for securities fail to bring forth
an investment inquiry, except in a few
issues in which prices are now at a level
that appeals to investment capital The
bond business IS inactive, except in
speculative issues, and there is little
probability of much Improvement in the
demand, owing TO the better returns that
may be secured on money in the regular
business channels. When business was
depressed large amount Of money went
into the bond market, but at existing
quotations for mortgage issues and with
heavy inquiry for funds in our indus
tries there IS little incentive for opera
ticns in the bond market, the chief buy
ing at the moment, outside of that for
speculative Sccount, being for estates
and indivicTals that prefer this form Of
investment 20 any other. Our city bond
market is dull. Tamrany's abuse of our
municipal affairs has lessened the value
of New York bonds with investors, and
dealers believe that no Improvement can
be brought about in the market until
the reign Of greed and graft IS succeeded
by that of party that will stand for
civic righteousness and sound city credit
as represented by Mr. Barnard and
his associates on the Republican fusion
ticket.
Underlying factors governing the in
trinsic worth of most American invest
rent securities are fundamentally strong
and indications of healthy expansion In
the industries upon which our securities
depend for their value multiply daily.
The report of the United States Steel
Corporation for the September quarter
supplies evidence OF the remarkable re-
covery that has taken place IN the coun-
tIys industries since the effects Of the
panic of 1907 disappeared, and the abil
ity of the corporation to advance its
common stock to 4 per cent yearly
basis and TO appropriate after dividends
100000 600 from the quarters earnings
for betterments and improvements en-
phasizeS the fact that no nation in the
world can equal in recUperatiye power
the United States following periods Of
acute business disturbance. The only
fear expressed in conservative quarters
al present is found in the theory that We
will not profit by the mistakes of the
past, and in our enthusiasm and zeal for
the accomplishing Of greater feats in
our business life again overstrain our
credit facilities. noteworthy develop
ment of the last week was the announce
ment Of heavy equipment orders by tn"
railroads, the filing Of which directly
affects the iron and steel industry and
msures pronounced activity in the steel
plants and car and locomotive building
concerns Tor many months to come.
While easier money mark It conditions
here have contributed to the better SEN
timent in Wall Street. the more reassur-
ing reports from London also have been
a factor in encouraging the speculative
appetite for stocks, especially for United
States Steel common, which is selling ut
a price that fully measures the position
OF the issue as a per cent investment
Steel may now go 10 par, but 1t is not
worth that figure as per cent indus
trial security, despite the wonderful!
strength of the steel corporation. Wall