New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-14
Fin ANCIAL MARKET
INVESTORS BUYING.
Home and Foreign Capital
NoUing Into Gilt Edged
Securities.

are exhibiting more friendly attitude
toward our high grade stocks and bonds.
me strength of fundamental conditions
In the United States and the difference
| between the yield on American and
European gilt edged issues in favor OF
thls market are contributing TO ali ex-
banding foreign demand for our solid in
VestmentS. which it Is believed eventually
will serve :" -"feet this country's adverse
position H. .Ie International financial
markets rs 4 consequence of a heavy
decline IN exports Of merchandise from
! here and an enormous increase In i'm
ports at New York and other ports.
Shipments of domestic products from the
United States in the month of February
amounted in value to s49.417.065. "A de-
cline of Sf4.361,617 from the same time
i year ago and s45,lS3.s54 from the cor
responding period in 1908 The high
price Of breadstuffs and cotton has made
| our market a poor one for buyers. while
the attractive figures quoted on the ar
ticles we import naturally have kept
transatlantic liners busy in discharging
enormous cargoes OF foreign goods on
our shores.
Farmers are holding back their grain
IN the expectation of receiving even bet
ter prices than those now current but it
is conceivable that with the approach of
the spring planting season, which will
| show increased acreage, and with favor
! able progress of winter wheat there may
be some serious upsetting Of the ideas
At present prevailing in the AGRICULTURAL
community. large amount of grain is
being carried on borrowed money, and
herein lies factor that encourages the
theory in well informed circles that heavy
liquidation in the produce markets may
soon develop. owing TO the enormous
| expansion in bank loans in the country
at large and the certainty that a period
| Of higher money rates is coming. Banks
| may be compelled to do some extensive
| liquidation Of speculative loans in order
/ to meet the demands of trade and cor
poration financing and with this posi-
| bility in view conservative operators in
| stocks are not making heavy speculative
commitments for the future. On the
| advance that has been recorded in Stock
| Exchange prices since the collapse of the
| downward movement in the first week III
| February a large amount of stock has
been sold by the people who accumulat-
! ed securities at bargain figures and
while actual buying for investment ac-
count is under way the current specu-
lative selling is better than the buying.
| Stock market prices moved in an ir-
regular manner last week, with the gen
eral tendency in the second half in the
direction of lower levels. this movement
! following a period of decided strength
/ in the course of which the average price
for the leading railroad shares advanced
to 1884. against the low point in Feb
ruary of 1885. and the chief industrial
| issues to 1886, compared with the low of
the year at S5.03. In Saturdays market
the close for the railroads was 125 and
for the industrials 93.75. These averages
are we'll under the fictitious levels re-
corded in the bull speculation Of 1909.
/ but sentiment in speculative circles is
not oyerbullish on the prospects for
| further material gains in quotations al
the moment. AS a rule present prices
discount favorable conditions in the
countrys industries, while in view of the
weakened technical position of the mar
ket and the large amount of stock now
carried on borrowed money the develop
| ment of adverse factors, even without an
/ element Of permanency. doubtless would
/ tend to bring about q substantial reaction
in the general market. The labor situa-
ton is far from encouraging, and al
/ though trade conditions are sound an ex-
tension of labor strikes would necessarily
check for time business progress.
The action of the directors of the New
York Central 6 Hudson River Railroad
I'm increasing the dividend at this time
/ has caused adverse criticism in some
quarters on the ground that higher
dividend viii tend to strengthen the de-
mands Of employees for additional com
pensatiCn for their services and upset
the argument that the transportation
companies are entitled to higher freight
/ charges. As far as earnings and other
/ income" are concerned no exception can
/ be taken to the decision of the company
/ to enlarge its dividend disbursements.
/ Traffic receipts of the New York Contra
have increased to an almost record
| breaking extent, while the road has been
substantially benefited by the larger div
| idends declared by its subsidiary com
panies. but there is nevertheless some
/ reason for the complaint Of critics OF
the company's policy that the matter Of
bigger dividends should have been left
| for future consideration. Bulls on Penn
sylvania look for A per cent dividend
basis for that stock in May for reasons
similar to those that prompted the New
York Central directors to raise their
rate The stocks OF both companies are
solid investments. and they can now be
bought to return a satisfactory yield for
| the conservative investor
An important development Of the week
in the financial markets was the offering
of large amount Of New York City
! corporate stock AT Az per cent, tho rate
representing bond market conditions and
the determination Of the city admins
tration 10 do its financing on the basis
OF conditions prevailing in the financial
markets, something OF which former
Controller Metz was never guilty. The
/ offering will be heavily oyersubscribed,
| according to present indications, and il
! IS likely that considerable amount of
the bonds viii be taken by foreign in