The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-21
rKE FINANCIAL SITUATION.

tons In values h . mere day 90 day spscu
Afive opportuniam. There WIS ALSO
lutely no prsssnce last week tlas changes
IN markst values we're dus 60 any othel
cause than strictly prOesssioaAl opera.
tions- AZ tho end 81 The hrst week In tn
pressnt month prices had snjoycd a very
considerable rise from tho sharp dspres-
SION that culminneed q month previoSisly.
The extent % this advance was surpris-
iRg To. many people In tho financial dis
trict because 10 wAs quite beyond that
which prsosdeut Indicated. The custom
sryrnls In such things 10 for q security mar
bet after . more or iess violent fall 20 rally
sharply In q brief space Of time and thsn
70 sag back 60 che low point originally
touched. This time under the particular
leAdorship Of ono stock. namely United
States Steel common. the rally In tho
market was 30 prolonged - TO bO not
merely q rally but o sustained upEarSs
movement. whom this In turn had run
Co rather extraordinary lengths specn-
lators began 60 QUESTION the souTsdness
Of the move and 20 take profits freely.
In the fore part Of last week therefore and
the latter half of the week before shs gcn-
eFal tendsncy Of prices was downward.
but At the end Of the week q pooond re-
covering movement bad made consider-
able Roadway. All these market ups
and downs were In no way accompanied.
% far a. intelligent observation could
discover. by any material change In the
underlying financial and business situa-
ton. and In all probability or stock
market would be excessively dull just now
were 10 not for the rsatlsasness Of habit
ual spectators. Men OF this sort are
never contsnt unlsss prioeO arc NOV
ing At a fairly rapid pace In one direction
or tho other. and tho times Of the year
are scarce when such operators. OF the
greater number Of than. are out Of the
market. Moro has been made In the
last few days. and very properly so. Of one
decidedly unfavorable phase Of financial
Affairs. tho Indications u firmer money
here and abroad. The Bank Of England
last week advanced its discount rate from
. 90 per cent. the directors Of the bank
declining 20 -ssssss ito 5ssSs % = cherry
by advancing the rate az the usual stages
Of ons-haR Of per cent. last year. az
will DO remembered. tho English hank
got itself into more or less difiiculty by
an advance In the rate longN
than it should; this year the management
OF the hank has. a. seems. cot out TO keep
itself In q proper supply Of funds from tho
beginning.
Time alone can show just what the
general effect OF the higher rate OF the
Bcnk Of England will be. The primary
reason for tho advance 10 apparently the
confused and unsettled state OF Euglish
finances owing 20 the complications over
the English budget. which are still far
from being unraveiled. Sooner or later
in the year something Of financial crisis
IN feared in England a. a result Of all this.
and IL IL expected that the matter will be
does pass and a great collection OF psnt
NJ revenues takes place within q compare
lively limited space Of time. Aside from |
lhia q dsplStiOn OF the banks reserve |
seems 10 be going on owing 20 large de- |
mands for money from India and Rupsia |
In tho 0Aas oR RalasAa this 10 due to ths |
traditional policy % the Russian Govern |
nent In adding TO its stores OF gold. rightly |
~ not designated a. those OF q war |
,hest,- on every possible occasion, and |
he occasion at present In that Russia has |
enormously in tho laat year
through the fact that along with Argentina /
he has been practically the sole eOurcs OF /
he wheat supplies Of importing countries,
hat il TO sAy has profated largely by the 1
Absteution Of our own country from the /
xrain export trade. The whole affair an /
{ concerns M centres upon the point
whether the United States will be- called
Ipon 10 export gold az q time Of the year
l. EWn 1
MIR country both for agricultural and
general mercantile purposes. Il appears
% he undesirable that gold exports would
AVE occurred before this and would now
" in full swing were II not for the large
,ond sales recently negotiated by our
,ankerp. The circumstances that a great
Iuantisy Of exchange was ready awaiting
IN advance in sterling rates here had the
feet last week Of sitting q rise In sterling
hat immediately sst In a. a necessary
consequences Of the advance in the Bank
EnRlAnd's discount rate. whether a
Supply cs sxshsaSs from tho
ource NAMED will ba still obtainahle
nd whether the securities sold abroad
rill be held there permanently or soon
gain be reHold here are matters conosrn-
ng which &C the moment only unoer-
sinty can be oppressed.
II must be noted. however. that many Of
az leading international bankers saw In
rivats that tire European market for
ur bonds 10 nov distinctly poorer
han IL was a few weeks and oven A
sw days since. and that this 10 due. an
! inevitably mus have been. to the large
Terings ~ securities made by us as
Don as the European disposition TO buy
itself IN other words our
ankers have flooded the European
market with bonds for the tune being.
y thOss. moreover. who are looking for
rounds for encouragement az N the
enersl position 81 affairs no qualification
'as gwen in the report ~ the country.
Nretgn trade for February which was
lade public last "Wednesday. a decrease
\ the c0untry's exports 81 staple prod
cts that is 70 -ay mostly foodstufYs. OF
"a 40 90 vas. u - true. r~duost tn a
ecTesse IN general shipments Of q little
yer esn0. coo by an increase IN the slim