New-York tribune., 1910-02-05
FINANCIAL MARKET
LONDON BUYS STOCKS.
Current Prices ProCe 4ttroc-
tice to Investment Capital.

Higher prices for our stocks III the
London market were rejected III
strong opening on the local exchange
md in spite of heavy selling in the first
hour of business the initial Improvement
was fairly well held, while IN the early
afternoon marked strength developer
throughout the list. Gains were based
more on technical market conditions
than on any aggressive effort TO bring
about better quotations The seLlhs
movement in Thursdays operations was
overdone, and the rebound yesterday
was wholly in line with the naturai
course of quotations following severe
depreciation in market prices. Seno-
ment among professional traders, now
ever. was not bullish, and predictions
were freely made that further GQulda-
ton would develop before sustained
gains could be expected It may be well
to bear in mind that stocks SOLD III re-
cent days have gone from weak 10
strong hands: also that liquidation has
not been the result OF conditions affect
ing the intrinsic value of American IN
vestment securities, and that present
quotations are at a level that doubtless
will attract investment capital TO the
market. Based on the price Of money
and the dividend yield high grade rail-
road and industrial issues are cheap at
prevailing figures, though they may not
prove profitable to operators VINO buy
them on borrowed money. Notwlth-
standing the enormous decline from the
high levels Of 1909 big margins should
be provided for the reason that bear
movements, like bull movements, run to
extremes.
Active efforts to force declines were
made at various times in the day, but
the volume of buying was large enough
to prevent the development Of weak
ness. except in American Smelling and
Iaclede Gas, which ended at net losses
Of more than 1 point. Utah Copper also
was heavy, but was bought by substan-
tiaI interests. 1t is now apparent thal
the Guggenheim interests hold enough
Nevada Consolidated stock to insure the
success of the merger Of the company
with the Utah Copper Company on the
terms proposed which have appealed to
all the large interests in the Nevada
company While much Of the buying IN
the general market represented covering
of short contracts there was an improved
demand from local and foreign oper-
ators, who always may be found on
hand when prices have declined to at
tractive levels, and in foreign banking
houses sentiment favored the idea that
Of
vestment capital would be attracted TO
our bonds and stocks as a consequence
Of the extensive decline in quotations.
Last prices were under the best Sew
eral commission houses that recently
have advised customers not to buy
stocks announced yesterday that pur-
chases might now be made with GER
tain degree OF safety.
According to the known movement Of
money in the current week, the local
banks have gained S1,50O,OG0 in cash
holdings, against an estimated gain a
week ago OF S66S5,O00 and an actual
gain in the Clearing House statement of
Sc, ,243. 100. The receipts Of currency
from the interior in the last six bust
ness days have shown noteworthy de.
crease as compared with those Of the
preceding weeks of the year. while ship
rnents from here average about the same
as IN the earlier weeks, with the ten
dency faVoring a larger outward flow
as spring approaches. Money is easy
at this centre. and in the absence OF an
active public demand for securities on
marginal account there is little incen-
tive for outside funds TO come to New
York, especially as loan rates at other
cities generally are higher than they
are here Sterling exchange was easier
Yesterday under the influence of offer
ings against purchases OF stocks for Eu-
rorean account.