New-York tribune., 1910-02-21
FINANCIAL MARKET
STOCK PRICES GAIN.
Foreign Commerce Conditions
Encourage Shipments Of Gotd.


panied by active buying for the so-called
ordinary public. Nor was there any
heavy accumulation OF securities by
banking interests. The chief buyers
were big traders. who had ample bank
ing facilities at their command, While
the chief sellers were the substantial
financial institutions and capitalists VINO
bought stocks on the recent severe de-
cline In order to prevent acute demor-
alization in the market. The latter In
terests are not opposed to advancing
prices at this time but they evidently
are not working actively TO bring about
a repetition of the bull movement that
eliminated last autumn. Later on IN the
year when the crops are in the ground,
the real big men OF the Street doubtless
viii find an opportunity 10 encourage
lower prices for q time for the purpose
of sccunlulating large lines to sell on the
usual August bull BOOM but in the
mean time it does not appear probable
that the market will be more than a
traders affair, With the tendency in the
immediate future in the direction Of
higher quotations. Al least this is the
view expressed by the best observers in
the financial community
Liquidation that began in the late fail
and became exceedingly heavy in Janu-
ary ceased early in the current month,
when the average price for the leading
railroad stocks was 1885. against o
high level in 1909 of 1916. and that for
the chief industrials S5.03, compared with
:. H.
low prices were made on February 8,
and since that time the average for the
railroads has advanced to 12426 and the
industriaIs TO 91-s5. This average gain
supplies good idea OF the change that
has taken place IN stock market condi-
tons but il does not reflect the bull
manipulation that has been under way
Reading. in which there has been an
advance from 154 to 172A the latter
quotation, with the dividend added, be
ing the highest ever recorded for the Sc
curity. Traders assert that Reading is
advancing on the strength of the con-
cealed assets Of the company Reading
interests say there are no pending de-
velOpnentS that warrant the great bull
activity in the shares of the company,
but enough of the stock has been added
TO the original holdings of the insiders TO
encourage the belief that the chief own
ers Of the Reading property are con-
WINGED that the price Of Reading common
eventually Will sell far above its current
level. which represents an investment
return Of less than 31a per cent.
Wall Street discovered last week that
its recent rysteria was not warranted
by the attitude Of the administration on
legislation affecting corporations, and 1t
reached the conclusion that the decline
in prices did not indicate The approach
of z period of business depression. And
it also discovered that some of the most
hysterical people in speculative quarters
We're heavy buyers Of securities when
the Wall Street atmosphere was thick
and sombre. There has been d large
amount of actual investment buying on
the decline and active purchases for fo7-
eiEn account, the latter being reflected
III heavy shipments of certificates to
Europe. and it is not likely that these
securities viii come back to the market
unless something should happen to de-
preciate the intrinsic value of American
Investment issues 1t is highly proba-
bic. however. that more of the stock
bought for the purpose Of supporting
prices will>be put out on all advances. The
foreign buying is less active now than
il was q week ago, and unless Europe
takes a large additional amount Of our
securities in the weeks to come foreign
exchange conditions viii move more de-
cidedly against this country.
Gold exports to South America have
been resumed The shipments represent
the settlement Of London obligations IN
Argentina, and they reflect the adverse
position the United States at present oc-
cupies in international trade. Europe's
recent purchases Of securities in this
market depressed sterling exchange
rates for time, but an advancing ten
dency has again developed, with every
indication Of strong market for many
months, owing TO our dWindling exports
OF merchandise and our growing import
trade the latter for January showing an
increase as compared with the same
time last year Of more than $4,000, 600,
against a decrease in exports of more
than Sf2po,ee0. In fact, imports were
the heaviest fer any January in the his
tory Of the country, while the excess of
exports was smaller than in any Janu-
AIRY in the last seventeen years. amount
ing TO only S10.357, ,2S6. From july |,
1909 the excess Of exports of merchan-
disc amounts TO $192 96S,:}29 against
S;;:54 22S4 4SS IN the corresponding time
in the preceding year and S431, 49,. .2I4
in 1907. The apparent balance IN favor
of this country has been more than off
set by expenses Of American travellers
abroad, interest on securities held in Eu-
rope. foreign freights, money sent to the
old country by foreign born American
citizens and by other known factors that
figure in international financial transac-
tions Europe has invested considerable
money in American securities in recent
weeks and has thereby increased its
command Of our gold reserve. Europe is
frightene' easily. and it has a habit Of
calling in its capital placed in the United
States at times when we can i'll afford
TO spare it
Russia has been the principal exporter
OF wheat so far in the current year, for
the good reason that il is selling It's