The Washington times., 1910-04-02
MARKET CONDITIONS
ARE NOT FAVORABLE
London Money Stringency
Starts Exports of Gold
From United States.

The month or april opened with tie
stock market hesitating and depressed. /
Prices underwent a further reaction,
and had it not been that stocks were
generally In strong hands the decline
might have been still more marked. |
Nevertheless. the big holders had some
what lightened their burdens and were
indispOsed to re-enter the market as
buyers, until concessions of Importance
could be obtained. II must be ad-
mitted that eurrost developments were
temporarily Of an unfavorabIe nature
The advancing tendency i'm money was
adverse TO stocks. In London the strin-
gency was particularly noticeable. the
situation there being aggravated by the
British budget difficulties The quar-
terly and fOrtnishtly settlements in
London occurred this week, added 70
which the Government was Obliged 10
meet unusual financial obligations. This
imposed a severe monetary strain upon
London, the high rates for money there
neceSsitatinE sold exports from New
York This movement would have be
gun some time ago had IL not been that
our adverse trade balance had been
partly Offset by liberal European tax
inEs Of our Investments estimated at
about $9J0,CO00O0.
The foreign demand for our securities.
h3wever, has suddenly subsidized. and
the adverse trade balance II Is feared
will continue until the new crops are
available. COnslders ole quantities If
grain and provisions are still held baC,-.
and these may he exported later on,
thus partially relieving the export sit-
uatiOn.
Another depressing factor has been a
sudden rush 20 market new securities
In Unexpectedly large volume The
railroads continue IN need of immense
sums 10 keep facilities equal 20 de
mEndS, and a desire 20 take advantage
Of the first opportunity the market at
foTded has been accelerated by fear OF
Federal restrictions upon the issue Of
new securities The lOtauOnS during
the month Of March were unusually
heavy, and II Is knC IN that many other
| important amounts are suspended await
ing the next opportunity The result
D. a much cOnEeSted bond market The
new issues have been readily under
written, but have not yet found sue
cesSfUl placement with investors. Low
rate bonds. moreover, are adversely al
fected by the better rates demanded
for money, and the necessity Of luVes-
tors securing as large returns as posi-
bic In order 20 meet the increased cost
OF living.
Short Term Notes Favored
short term notes are again coming
into prominence as the most feasible
method Of raising funds FOR the rail-
| roads. One more element Of weakness
has been the labor situation. The rail-
! roads generally have made liberal con-
! cessIOnS 70 their employees. which viii
materially increase working expenses.
1 How far this will affect net results can
not yet be determined. but railroad man
| ayers depend for compensation through
| an increase Of traffic, as We as some
| advances In rates. Railroad earnings,
/ 10 is encouraging 70 note, are already
| making very satisfactory gains COM
> pared with a year ago. and the eXpec-
4 tatiOns OF traffic managers are Tor B
heavy business next autumn. If not be
4 fore.
/ sim other causes OF uneasIness are de-
law in the Supreme Court decisions arls-
/ ing from the death OF Justice Brewer.
/ and the general political situation. es-
| peCialiy regarding the tariff IL Is belnS
I more and more recognized that the lat
] Ter question will not down and must
/ 2 gain become the subject Of political
! controversy, the high cost Of food max
eng the issue all the more lneTltaDle-
Such are the unsatisfactory features
.. the present situation They have.
,owever, been pretty thoroughly ClS-
/ counted, and the general outlook Is not
! .nfavorabIe. on the contrary, there IS
1 every prospect for another season OF
I good business, provided we have good
/ crOps II there is one thing more Jndh
4 another which the country requires, II
( Is a much larger product OF al @srl-
continued prosperity 70 the farmer. and
afford a much needed relief 10 the
/ masses by lowering the cost Of living
/ and bringing IL nearer 10 the lever
| which prevails abroad II is. Of course,
yet too early TO form any opinions re-
Eardiug the CROPS. most Of the reports
Of damage to early wheat and cotton
/ having proved 20 be exaggerated v IS
quite certain, however, that there VIII
be a larger acreage Of cotton. wheat
. and corn
Depression Cannot Last.
As 20 the future, the present period
Of depression cannot last Prices re
ceded owing TO the temporary condition
OF the money market, the congestion m
bonds and the disturbed political stu
alton. bu' these conditions have beer
ar.rly discounted, underlying conditions
continue sound, and when II is shown
that the earning powers of our Ereal
railroad systems and Industries are not
impaired confidence viii return. and the
securities Of well established properties
will be once more in demand and must
recover from the present reaction SuCf
a recovery cannot be very far distant
and should come as soon as easiel
money is in prospect. The fact tina
April !, usually a period Of special dis
turuanCe in the money market. ha'
Z Il. 4. i