New-York tribune., 1910-07-14
FINANCIAL MARKET
Sterling Rates Down and More
Gold Engaged Abroad.

The larger number of proposed in
creases in freight rate schedules re-
Gently filed with the Interstate Com
merce Commission will not become ef-
fective on August 1, as planned by the
railroads operating between the At
Iantic seaboard and the Mississippi
River This fact became known yester-
day afternoon in dispatches from Wash
ington stating that the commission
would not permit the companies to ad-
vance their rates until an exhaustive in
vestjgation regarding the reasona BILE
ness Of the higher schedules had been
made and it's announcement was i'm
mediately followed by a sharp decline in
stock market prices. which up to that
time had shown decided strength on a
small volume Of trading. The weakness,
however. was shortlived, as the larger
interests rendered support. compelling
rapid covering of short contracts and
bringing about a strong closing, with
gains of from ! to g points above the
! lowest among the prominent shares,
! Union Pacific showing the best strength,
despite the fact that it was one of the
weakest features on the break. In the
| final rally little stock came out, as was
/ the case on the advance earlier in the
day Bear traders argued that if in
creased freight rates should be allowed
by the Interstate Commerce Commits
| sion they could not be put into effect for
several months. and that the delay, to-
gether with the fall political campaign
l,o a the and
the outcome Of the American Tobacco
and Standard Oil cases, now pending in
/ the Supreme Court. would tend to drive
prices to lower levels. It would seem as
/ if stock market prices already had dis
counted these factors a number of
strong bull pools have been formed in
! recent weeks, and in the opinion of many
! good market judges prices VIII rule well
! beyond the present level before the open
! ing of the autumn season. Wheat was
weak yesterday. under the influence Of
better weather reports and increased re-
ceipts at Western points.
Gold to the amount of S1,0OO,00O was
engaged yesterday in London for ship
ment to the United States. making
total on the current inward movement
Of So, 10000. Sterling exchange is at
the lowest level of the year, and, while
under present conditions in the market
there is little if any profit in bringing
gold to this side of the Atlantic, the in
ternational monetary situation appar-
entity foreshadows a decline in demand
sterling to a range that will encourage
the importation of q large amount of the
metal Money is easy in London and
time funds show a firmer tendency here
Call rates, however. have not advanced
from the level that has prevailed for
MANY weeks, and at the moment there
appears little probability Of material
hardening for weeks to come. Our call
quotation, nevertheless, is point or
more higher than the rate in the Lon
don market The lower discounts in
London and the offering Of stock bills
bv arbitrage houses at this centre are
the chief influences in weakening ster-
ling quotations. Our export trade shows
some improvement, but there has been
such large decline in the last twelve
months in exports of merchandise and
such an expansion in imports that there
would be little prospect u solu illipoiIs
if a movement depended solely upon for
eign trade balances. For the month of
June exports of domestic products from
the United States amounted in value 10
S44 O45.429. compared with S41,37o, go
in the same time last year, the slight
gain being due almost entirely to heavy
shipments of cotton at prices well above
Il, For fhH nEC3l
total exports of domestic products
reached a value Of $7S7764. .637, against
SS:3}3 977. .41G in the preceding year and
S943. 80, ,O45 IN the year ended June 80.
1908