The San Francisco call., 1910-03-20
The Financial
Situation

vailed in the eastern securities mar
ket all the week. with quite severe
declines in prices. The end of the
week shows fair recovery, due, no
doubt, TO the greatly oversold con-
dition of the market.
The demand from the real invest
ors continues small in most lines,
but is much stronger in United
States steel as a result of the pub
nshed report of the corporation
showing the net earnings of 1903
available for dividends on the COM
mon stock to be 1883 per cent. as
compared with 4.OS per cent of the
previous year.
a determined effort TO again ad-
vance the price of this security may
be anticipated and on account Of its
recognized position as the market
leader an advance in this viii carry
the general list up with IT.
one Of the important happenings
Of the week was the action of the
Bank OF England in advancing the
discount rate frem to per cent.
This advance is as large as in times
Of unusual financial stress and the
money market has felt its effect.
Time money rates are frner and
there is apt TO be a curtailment of
credit.
IN some quarters the advance is
regarded as an effort on the part of
the always conservative governors
of the Bank of England to check
the era of somewhat wild specula-
ton now in progress in that coun-
try and which is strongly evidenced
by the excitement in rubber shares
in the London market
Again. ii is estimated that Europe
has purchased at least 100000 600
worth OF our bonds within the last
two months, although in banking
circles il is pointed out that even
this sum is but a small Offset to our
debit balance abroad. But the fact
remains. If reports are TO be credit
ed, that the gold reserve of the Bank
Of England is nearly $4,000 600
lower than year ago with further
heavy Withdrawals in prospect. The
most serious effect of the advance in
the discount rate. as viewed on this
side, would be the probable check
TO our bond sales abroad.
In spite Of the general opinion
that the great combines will suffer
no curtailment Of operations at this
time. now that the matter is being
and ii is seen that the judges are
holding counsel closely to relevant
points, a certain element of unrest
is noticeable among the usual trad
ers in those stocks and this feeling
of unrest may have been the means
OF bringing forth the optimistic eX-
pressions of opinion from some of
the great financial leaders as op-
posed 70 pessimistic views intimat-
ing q pending financial crisis. In
spite of unsettled conditions in the
eastern stock markets such a crisis
seems far distant unless the su-
preme court decision is entirely op-
posite 10 what is expected and is
used 10 bring about crash
Crop damage reports have been
somewhat Offset ty expert opinions
that the possibilities are for large
crop even conceding a great reduc-
tion in the Kansas wheat Weld
General conditions in the railroad
world are considered very good.
Additional reports are coming in as
10 increased business and larger net
earnings. II Is not anticipated that
strike troubles will extend TO the
railroads. although demands for
higher wages Will undoubtedly have
10 be met.
The sugar trust announces great
Increase OF earnings for the last
fiscal year.