New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-17
FINANCIAL MARKET
Week of Bull Activity IN STOCK
Speculation.

mated on July 26. with the average pIiSe
Of the leading railroad issues IT lo'.'9
and the chief industrials at 1880. which
compared with a high for the ram aus Us
in the preceding year of 1916 ana $50
for the industrials. From July - Oh
the current year TO August Il there y dS
an advance by the railroads TO AII-+'
and by the industrials to Sl.4l. foilo"eu
by a decline to 1850 and 7Sio for the
respective groups on September .. from
which time there has been a steady ap-
probation. last weeks high points beng
1880 for the railroads and $50 for the
industriais. Although many persons IN
Wall Street believe that the market Is
now in a bull swing. it is thought that
money market developments will inter
fere for a time with sustained opera
lions for higher quotations. despite the
theory held In some quarters that the
present ownership OF stocks and the
close concentration Of banking interests
will make ineffective any adverse de-
velopment as an influence upon market
movements.
come out in large volume from what
may he called the strong primary
sources in the last TWO weeks. and in
many minds the thought naturally arises
that substantial interests who have been
selling have based their operations on
the idea Of getting them back at cheaper
figures as a consequence of liquidation
~
course the market may take in the i'm
mediate future. there is little doubt that
general conditions are shaping them
selves along lines that eventually viii
lead 10 2 much better level of quota
tons but speculative transactions for
the rise on borrowed funds at this par
ticular period may not turn out SO
profitablv rs enthusiastic margin trad
ers predict especially in view Of the
marked Improvement that has been re-
corded in market values in recent weeks.
Outside Of the money situation there is
every reason for Cbeerfulness. but the
fact that the money market contains
clements of danger ought TO suggest ex-
treme conservatism in the making Of
new commitments that involve the use
Of bank accommodation.
Money market movements are dis
tinctly in favor Of firmer loan quota
tons call funds last week reaching the
highest point since May Of the current
year. the general trend Of the market re
hecting d rapid absorption of the float
ing supply Of money at this centre. And
unless this country should he able to
import gold from Europe before the end
Of the year the rate for demand funds
undoubtedly VIII go 10 level that Will
call for extensive calling Of loans
against speculative accounts. Fortu-
nately. one important factor that might
have led 10 disturbance in the money
market practically has been eliminated
by the compromise over the cotton bill
Of lading controversy between local and
foreign bankers. which calls for the for
nation Of a guarantee company which
VIII guarantee the validity Of these bills
and safeguard them against forgery
While the solution Of the matter is not
altogether satisfactory. il will serve to
meet the pressing needs of the situation.
!
PEELED 10 finance cotton exports severe
stringency would develop in the money
market; but even with this problem re
moved, local bank reserves and foreign
exchange conditions do not warrant the
idea that our financial institutions will
be in a position safely 10 handle the re-
qUirements Of an aggressive bull specu-
lation in the stock market
In Saturdays statement. showing the
actual condition O. the Clearing House
hanks reserve above legal requirements
stood above S1l.0OO.0OO. the showing
suggesting that if an active movement
on the Stock Exchange should be in
jected into the situation something
higher than d Der cent rate for call
money viii be recorded. especially as
loans already are heavily in excess of
deposits. while the banks are still losing
money 70 The interior and TO the gov
eminent. the loss 10 the Sub-Treasury
being made IN spite Of an excess Of fed
eral expenditures over receipts So far in
the current month of more than So 200. -
o0". Government disbursements are not
concentrated at any one point. but the
larger proportion Of government receipts
comes from New York direct. with
much Of the outside movement handled
here ny drafts by interior banks TO the
government on balances held at this cen
ire, The federal Treasury is in a com
Portable position. 81 far as current needs
ere concerned. nut its working balance
is too small 10 permit of heavy deposits
with national banks in the event Of
money market Stringency. Moreover.
We cannot hope 70 draw sold from Eu-
rope unless foreign capital moves &C
tsvelv into our securities or money rates
reach an extreme Level As a matter Of
tact the available supply OF capital in
Jhis country at the present time. though
Increasing is too small 70 encourage the
nope II ueavy domestic investment
haying movement or the successful
fotation Of large new securities issues
u the moment The general position Of
affairs IN the United States viii he ma
terially helped if we can find an active
market abroad for our surplus grain
and cotton. and for cotton exports at
least the outlook is promising in spite
q high prices prevailing for the staple.
Stocks on hand in Europe are low, and
the foreign spinners evidently Will have
TO come TO us for the raw material ire
spective Of high costs.
The railroad rate controversy appar-