New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-24
FINANCIAL MARKET
Wall Street BuIIish in the Face
of Hardening Money Rates.

ing evidence OF coming higher rates for
money here and throughout the country.
by the flrmer discounts abroad and by
the movement OF sterling exchange rates
toward the gold exporting level. In
deed. the speculative element that is
working TO bring about a more atTac-
1 tive level Of prices for the distribution
Of its holdings is making capital out of
the argument that the hardening ten
dency in money reflects increasing trade
activity. and therefore is an excellent
reason for the public TO come into the
market for stocks. In view of the fact,
however. that stock market quotations
have enjoyed an almost uninterrupted
advance in the last two weeks the &C
cumulation of accounts at current levels
on borrowed funds does not appeal much
to conservative interests. which take lit
tie stock in the theory thar prices are at
the beginning of a long upward swing.
1t should be borne in mind, nevertheless,
that substantial banking interests are
behind the current upward movement,
and that with their tremendous control
OF bank facilities they can conduct a
market toward higher prices for a time,
Irrespective of conditions that would
seem TO make for lower figures.
There already has been heavy dis
tribution of stocks by these interests,
and the probability is that anything in
the nature of a real decline Will not be
permitted until the big men have thor
oughly liquidated their lines bought at
the low points OF the present year. When
the time is ripe for accommodation by
powerful! spectators the public as usual
will sell its stocks on a declining mar
ket. That time may come with the de-
velopment of stiff rates for money, as
the so-called money kings are taking ad-
vantage Of each advance in prices to let
the other fellows have their holdings. At
prevailing levels securities as a rule still
offer fair opportunities for investors, and
there is nothing in general conditions af-
fecting the intrinsic worth of our stocks
and bonds that does not warrant invest
ment purchases, but buyers on small
margins may not secure the profits they
expect Stocks bought at the low prices
recorded in the summer just now look
like attractive sales.
From the money market point OF view
the most important development of the
last week was the hardening of Eu-
ropean discounts, including a sharp ad-
vance in the Bank OF England's mini
mum rate, the strength in local foreign
exchange and the elimination of the
cotton bin Of lading controversy as a
factor in the monetary situation. The
extension Of the date of expiration Of
the validity of the form of cotton bills
of lading now used to December 81 re
moves from this market the problem of
financing exports OF cotton, while it will
serve TO provide ample time in which
consideration can he given to
the question. with the probable result Of
an agreement satisfactory to all parties
concerned at the opening of the new
year. Before that time the bulk Of the
cotton under export engagement will
have been shipped under existing meth
DDS without involving A strain on New
York hank resources With monetary
I'm Europe Tightening, how |
ever. and with sterling exchange sug-
costing shipments Of gold from tho |
United States it is quite probable that |
extremely high rates for loan aCcommo- |
dation viii he recorded before the end |
Of the year. especially if The demand in |
creases Tor mercantile and commercial /!
account
We'll jutormed business men i'm various /
parts II tho country express the opinion /
that trade revival already is under way
as = consequence Of the nations favor
able harvests of corn and other cereals |
and Of tho high prices at which this |
y ears cotton crop Is being sold. They |
find an increasing disposition OF con /
sumers 10 come into the iron and steel |
market. ANA they detect in all industrial |
circles %" evidence Of conditions that |
Wall Street a few weeks ago professed /
To see. while Wall Street itself now pro- |
claims from the housetops that reaction |
iu our industries is a thing Of the past, |
IS Colonel Roosevelt. it says, is To he /
Bull Spectators see a big |
market ahead if Mr.. Murphys little man |
should go 10 Albany, and if a Democratic |
I tilSftSH eliCt4lu ~ tlSCtt4- SIlhE 'iit /
fact that the Democratic party has /
never shown capacity to govern in the |
best interests of the general public. !.
They practically say that former Presi- |
dent Roosevelt has injured Wall Street |
by standing for honesty in the manage |
ment Of corporations and by his efforts |
to compel corporations and individuals |
to operate within the law. Hence. they |
argue that Roosevelt policies must be |
stamped out in the interest of stock |
market manipulation In other words, /
these spectators assert that they can |
not do business proftably with a higher /
Plane Of morality in our business af- !
fairs. Real investors are rot concern |
ing themselves with the Roosevelt boEie. |
Foreign trade figures for September, |
published last week, showed "a comfort |
able balance in favor Of this country, |
but il will require many months Of heavy /
excuses Of exports Of merchandise over /
imports to give Us a strong position in |
the foreign exchange market. Exports |
IN the last month exceeded imports to /
the value Of more than SJl,000,00 |
owing chiefly to heavy shipments Of cot
ton. but as an Offset against this sum
there were large freight charges paid to
foreign ships which carry the bulk of
our commerce. payments on interest &C
co,,,p+ IN oz-rcre In Furope Of American