New-York tribune., 1910-09-19
FINANCIAL MARKET
Stock Speculation Inactive.
While Better Demand for
Bonds Develops.

6ica+ion Of the development Of aggres-
/ sivsa speculation FOR either account in
the immediate future. Sentiment in
/ commission house circles Is conserva-
lively bullish without attracting an out
/ side demand for securities, while efforts
/ bv professional traders to induce iiqui-
dation meet with little success Prices
/ fuctuate within narrow limits on light
! transactions, with the larger part of the
business confined to a few stocks. chiefly
! the Hartman shares. Reading and the
metal issues. Although the tendency OF
the iron and steel industry has been
downward since the beginning of the
year. the fact has not impressed itself
uuon speculative interests until the pres
ent time, and Il IS owing 10 this sudden
realization Of the situation in the trade
that speculative interests have grown
somewhat more bearish in recent days.
| Conditions I'm iron and steel have shown
| no change In the last two weeks. and the
outlook is more in favor of the develop
ment of r stronger market Tor netal
nroducts than for denoralizauon, par
| ticularly as there is no underlying weak
ness In the industry; but in view of the
absence of an active public participation
in the stock market and OF prevailing
uncertainties, the Importance OF winch
/ is overestimated. il is not unlikely that
the dulness IN iron and steel will be
called upon toS help spectators short OF
stocks cover their contracts at lower
prices.
Judge Gary said IN an interview last
v.as,,. Underlying conditions Of busi-
ness are good. The steel and iron busi-
ness at this season is always more or
less dull, as is TO be expected, but iron
and steel manufacturers have no reason
/ to complain For six months prior TO
March Of this year We were booking or
ders about 80 per cent in excess of full
canacitv. That could not keep on in
definitely or We would have been
svyanped. and when a hull in business
comes there is always falling off in Or
ders received. We have generally three
10 four months orders ahead on our
/ books. and if We booked only half or our
capacity daily Il would take a long time
70 catch up with orders" Judge Gary,
/ as head of the United States Steel Cor
marathon. is in a better position TO an
alvZe the iron and steel trade situation,
1 and the fact that he is optimistic over
the future Of the trade and Of general
business in the United States ought to
cause Improvement in Wall Street
ideas over the outlook for the main
tenance of dividends on representative
steel securities. In the first three quar-
tiers Of the current year, September earn
ings estimated, the net income of the
Tinted States Steel Corporation ahead
of all charges and dividends has av-
eraged close 10 S3S0o0.000 for each
quarter. and even if in the last quarter
of the year net earnings should amount
10 only S30.OO0.o00. the concern would
still show for 1910 more than 13 per
cent earned on its common stock.
In the opinion of many conservative
observers uneasiness over national poll
tics has been overdone in Wall Street;
/ likewise uneaSineSs over the railroad
rate situation, and various other so
called uncertainties. The attitude OF the
administration does not suggest that
| honestly conducted corporations VIII be
! disturbed OF that business in general
will be interfered with. Certain new
/ conditions have developed in this coun-
I try. and the business community Is be
/ ginning II adjust itself to the change
/ which. in the end, should enhance the
actual value Of American investment is
sues and make them more attractive to
| foreign buyers, who undoubtedly Will
come into this market as soon as they
are convinced that the government
poIicy as affecting corporations is based
on protection for the investor. Any
regulation that safeguards the interest
Of the holders Of American securities
must necessarily tend 10 strengthen the
General business situation. The regUla-
! ,inn .f railroad rates does not involve
nrinciplc of cutting off reasonable profits,
! and the idea held in some quarters that
the federal government seeks 10 pare
| down railroad earnings TO an extent that
/ will permit Of extremely small DIVIDENDS
on capital stock is not we'll founded.
People who hold this view and VINO
have idle funds on hand would better
/ 90 into the bond market. where the gov
ernment. at least. Will not interfere with
! interest rates The market for mort
carc securities offers rare opportunities
for investors Dealings in bonds last
Noel, showed A marked increase over
Tn, light operations Of the week before,
and from the character of the business
on the Stock Exchange and over the
| counter there is reason to assume mat
| q much better demand for this class OF
investments may be looked for.
\ more confident tone is reported IN
business circles outside Of Wall street
and an increased inquiry for money from
1 mercantile sources is expected. Ihe
local banks are still strongly intrenched
! IN reserve and cash supplies. but the
/ tendencv Of loan quotations appears To
be i'm The direction Of n higher level,
both for call and time funds. eau
/ money advanced last week. due, in part,
t. the interior Withdrawals of currency
from this centre and to the idea OF re-
Gently unexpected demands upon the
! hanks i'm connection with tho financing
. Of cotton exports London bankers have
refused 80 accept American cotton bills
~ lsGinc without an American bank
guarantee. which our banks rightly re
! f1:ee To give. but as We have the cotton