The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-10-13
MARKET TAKES A
DOWNWARD TURN


a feeling of contontment over tho
extent of the advance already achicv-
cd and the profits accrued and in part
a misgiying over the adequacy of
forces to accomplish further advances
Evidence that the newly awakened
demand for bonds was being harmed
by the action Of the stock market
was a potent factor I'm checking the
organize efforts to further the rise
Ia stocks
] light is thrown upon the revival
in The bond market as well as on the
events that preceded it by the sta
tstics Of new capital issues which
have been made up by the Journal of
Commerce. For the third quarter Of
the present year just ended the COM
pilation shows new issue of a par
value Of 1874 $4,000. This compares
with $417147,OOO in the second quar-
ter and S613,2S2 900 in the first quar-
ter, making an aggregate for the first
half year far beyond any precedent
in the history Of the New York money
market.
Dealers in the bonds have come to
the underwriters to replenish their
supplies, and savings banks and in
vestment institutions have become
buyers This helpful process has
gone to the root of the recent Difficult
tie and the most favorable auguries
are drawn from it.
At the same time it is recollected
thar the difficulty grew partly out
of last years excuses in stock mar
ket speculation at time when more
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extent cleared it is difficult to view
the fundamental features of the mar
ket for stock exchange securities in
other than a favorable and encour-
aging light Were the political fac
tor entirely and fpally removed, 9th q
err conditions at present would com.
mand gradual if not spectacular i'm
provement. The corn crop. for eX-
ample, is now practically 90 per cent
safe and will this year undoubtedly
cross the three million bushel mark
for the first time in the history o.
our great country. Other products Of
our farms, while in no single in
stance do they promise to be new re
cord markers, nevertheless in the ag
gregate will not fall far short of ma
king 1910 the banner year in Ameri-
can agricultural history. This is &
fundamental situation that in the long
run must make itself felt-a situation
that will probably be reflected by the
financial market well i'm advance Of
either trade or industrial activities
It is hardly possible to exaggeratC
the Importance of such a factor il
the stock market
Another fundamentally favorabl,
influence is the distinct change 70
the better that has taken place Il
money conditions during the last few
weeks. The Bank of England. it /
true, advanced its official minimum
( discount rate to per cent on Thurs
day, following a similar advance b
the German Bank on Monday. In thi
the governors of the English ban
p merely made their official figure cor
respond with the actual market Mon
ev in England is not abnormally hig
e and the figures that FUNDS now. con
I mand there may be regarded as
! sign of strength in the general fisca
t situation rather than an indicatio
p, suggesting unfavorable development
e Great Britain today is passin
i through a period of almost unpre
T. cedented trade activity and prospe
t ity. It is natural therefore that tn
e banking business should Join heart
?. " in the current prosperity. In fa'
T. our own banking institutions couI
0 well stand a trihe more of this SAN
e kind of prosperity without it cor
Y stituting an unfavorable influence q
q the general DuSueSS Sll"a'i"'' '
e money per Sc, is not an unfaVoraD
Y stock market influence. 1t usually a
S companies depression in both tra'
and industry The fears that wei
- so general early in the summer
shortage of funds for the autun
If have proven unfounded and the pr
y sent prospects suggest that the sto'
e market will find ample banking ace
r. mediation available for any moveme
II of speculative character that
e likely to occur during the closll
r. weeks of the year Preparations II
Il the Quarterly dividend and intere
e disbursements which begin tod'
It were responsible for rather firm m
% ney rates late I'm the week, This
i matter that will now correct