New-York tribune., 1910-11-07
FINANCIAL MARKETS
Speculation in Stocks Contracts
as Money Rates Advance.

been strong as rule on purely pr
fessioual movements. The Street al
ready has elected Mr.. Dix. and ACCORDING
10 its point OF view Colonel RooseNei'
has been eliminated as political factor
for which the speculative community Il
singing songs of joy 10 the tune or All
hal. the gang is here" Wall street y
for Dix. therefore il is for Murphy an"
from Murphy and his brand Of Statesmen
sreculators appear TO he looking l'i
some luscious fruit in the near ru'uIe'
although they have no we'll defined lue"
Of what sort Of plums the Murphy men
could give them. The Street is bettlus
on Mr.. Dix and ii has been advancing
, stock market prices on the assumption
that he viii he elected. Democratic sue
cess in this state and in Congress cleo
tions throughout the country would ne
good news for spectators. who have
forgotten that intrinsic values never
have been strengthened by Democratic
policies. ana If the professional element
follows precedent ii will sell stocks on
the publication Of this good" news
which IT has been discounting. Further
more. il doubtless viii sell stocks for
time II Mr.. Stimson is successful but on
any decline that may follow Repuoh-
can victory conservative interests will
buy securities TO hold for higher prices
that eventually will be recorded Eiec-
ton results. however. are not likely to
he a factor IN the market for any length
Of time in the rest of the year as none
ta-v conditions and the course Of our
Industries Will assert themselves as
governing Influences in speculative and
/ irsveS1rr rr7ant movements
Banking interests that are devoting
their time 70 making n better market
Tor American investment securities al
/ home and abroad are not apprehensive
/ over the future Indeed. they believe
that in the new year there Will he an
ample supply Of money for investment
/ operations. and that corporations that
need additional funds will experience no
difficulty in placing new capital issues
on reasonable terms. Al the moment
money market factors should serve TO
keep the stock market quiet and dis
courage the placing Of new securities,
but inside Of sixty days there probably
will be "a readjustment Of conditions that
will warrant h broader and better mar
lzet for all securities. Indications point
10 4 more active business situation in
The coming year. In the iron and steel
trade. which is one Of the best barom-
oters OF industrial conditions. sentiment
is improving, while over the last few
weeks actual business has shown dis
tinct betterment. authority for this
statement coming from the head Of the
United States steel Corporation. who
asserts that conditions are sound and
/ that recent developments warrant the
belief that the railroads soon viii order
! equipment. rails and structural mate
riaIs in volume. Reports Of demoraliza-
/ tion in industrial circles are not justified,
while the extent Of the recession in trade
( IN the last six months has been eXag-
/ gerated-
Railroad earnings. bank clearings and
/ commercial failures have not indicated
/ real business depression. and as far as
the gross receipts of the transportation
con1panies are concerned as an index Of
| or industries the weekly and monthly
4
mism over business conditions. Net
. earnings continue TO make unfayorable
comparisons with the heavy returns Of
a year ago but there are few roads that
are not reporting q substantial surplus
after dividend requirements. Buying
of rails for 1911 delivery has begun, and
before the close Of the current wear
orders aEgregating several hundred
thousand tons viii be placed, The Iron
Age" the leading trade authority, say
ing in its last issue that the Erie has
practically closed orders for about thir-
tv-three thousand tons and that the
PENNSYLVANIA and New York Central re
auirements are now under considera-
tfon. a 5 are those Of the Norfolk & West
ern and several large Western com
panies. There are various factors in
the present situation upon which one
may base the prediction Of Improvement
in stocks and business after the turn Of
the year. but buyers Of securities on
borrowed funds at prevailing levels
should bear in mind that prices already
have enjoyed material appreciation from
The low levels of 1910, that there has
been d large distribution OF stocks
bought al d cheaper range. and that
substantial speculative interests may
r.-lze advantage Of money market con-
diiions 10 bring about lower quotations
before January ].
can money rates have shown progress
sfve strength in the last six days
Money continues TO move 10 the interior.
the banks are losing on their operations
with the Sub-Treasury and sterling ex-
change tendencies at this centre, while
in our favor. do not encourage the eX
rectation Of large imports Of gold from
Europe. despite increasing exports Of
merchandise from this port. A demand
for gold in London for American &C
count viii be opposed by the Bank of
England. and even though our foreign
trade is improving and Europe may he
dispoSed To buy our securities il viii
REQUIRE many months Of favorable eX-
porr balances and large investment OF
foreign funds in American stocks ana
bonds 10 place this country in posi-
tion 10 control the international money
market. We have been through a long
rer7or- of falling trade balances. while IN
the same time our expenditures abroad
have haan enormous TO say nothing OF
,,,1,-- interest rayfnents due 10 for