New-York tribune., 1910-01-10
FINANCIAL MARKET
MOST STOCKS LOWER.
Call Money Closes Week
Easier, after Manamum
Rate of II Per Cent.


selling resulting in small net losses in
the larger number of issues. Operators
who had bought securities on the expec-
tatton of heavy reinvestment demand
following the January ! disbursements
were grievously disappointed over the
absence Of such an inquiry, and with the
development Of higher rates for money
they hastily threw their holdings upon
the market, much to the advantage of a
large bear element, which was thereby
enabled to make substantial profits. The
more important Wall Street interests
failed to offer support, though they ap-
peared willing to take stocks on conces-
sions, and from the opinions freely ex-
pressed IN banking quarters a we'll de-
fined theory developed that lower prices
for brief period would not be opposed
by the chief market leaders Some un-
easfness developed in the Street last
week over the probability of legislation
| affecting the railroads, while there was
something akin to fear in the minds of
SPECTATORS as a consequence Of rumors
from Albany that efforts would be made
by the state lawmakers to pass bill
prohibiting speculating on margin. II
radical laws are made interfering with
Wall Street operations in securities, the
Stock Exchange will have itself alone to
blame. II has had the opportunity to
make impossible gross manipulation, but
1t has failed to take advantage of 1t.
And now the state may make 1t pay
dearly for it's inaction. Suspension of
wiz LOT nF ~rrIe nil 1of
effect reforms or prevent losses to hon.
est traders when gamblers rig the mar
ket, as in the case of the recent Rock
Island scandal.
General investment conditions are
sound and the outlook in the world of
money and business encourages op-
tinnism among owners of American rail-
road and industrial securities. There is.
however. no especial demand for invest
ment issues at the moment, though bank
ers believe they will have no difficulty
in disposing OF new stocks and bonds,
that will be brought out in the current
year, TO home and foreign buyers. Ex-
listing investment issues as a rule are too
high to appeal to capital, and, moreover,
just now there is little capital available
for investment purposes, owing to the
activity of money In the channels of
trade, Furthermore unless our bankers
can attract foreign funds to the Ameri-
can investment market our supply of
money is likely to be further depleted
through shipments of gold TO other coun-
tries. Gold exports last week to South
America aggregated s1064, 600. The
present year undoubtedly will make a
record in the matter of the emission of
new securities, and this probability in
connection with expanding general trade.
high cost Of living and increasing i'm
ports Of merchandise, which are not be-
ing met by corresponding gain in ex-
ports, precludes the chance of easy rates
for loans in 1870 though the extreme
quotations of last week are not expected
TO continue. The market showed an
easier tendency at the close. with call
funds down to So per cent, as against
high in the week of IA per cent. Time
money was little affected by the course
of demand rates, and no material change
in quotations for distant maturities is
likely to develop in the near future. The
excellent market for money here should
attract out-of-town funds and serve to
strengthen bank reserves, which in Sat
urday's Clearing House statement of
actual conditions as OF Friday night were
s14549,225 above legal requirements
An interesting development of the week
III the money market was the reduction
by the Bank of England in it's minimum
rate Of discount from 41a per cent to 4
per cent. the decision of the governors
of the great British institution to lower
the figure doubtless being based on their
belief that no market disturbance will
occur as consequence of election re-
suits. While a decline to per cent
rate does not indicate an easy position
of money it is, in view of the per cent
rate recently prevailing an encouraging
sign of improvement in the English sit
uation and reflection of increased con-
fdence in financial circles over the fut-
ure. That London still has large credits
in New York is shown by the resumption
of gold shipments from this port to
Brazil and Argentina for the settlement
of foreign obligations in those countries
and in the strength of the foreign ex-
change market which, in spite of the
easing Of rates at the close of 1909, again
shows an advancing tendency. Imports
of merchandise at New York for the last
year showed an increase to the value of
$210,115,S7S over the preceding year,
while there was a falling off in exports
to the extent of s15,407, ,296 from 1908 and
s39, sos 203 from 1907. No improvement
is reported in the outward movement of
breadstuffs while exports of cotton have
declined from the recent high weekly
totals. Exports of cotton since Septem-
Der have amounted to 3,S06,000 bales,
against 4916,000 bales in the same time
in 1903, the shipments of 1909 represent
ing an approximate value of 1870, 200, 900,
or almost $70.000.0O0 more than the ship
ments OF the preceding year. but in spite
OF this heavy gain in price sterling ex-
change rates have not been affected to
the slightest extent in our favor.
Efforts to bring about heavy liquida-
tion of stocks as q consequence OF the
recommendations made by the President
to Congress IN relation to legislation af-
fecting corporations were not successful,
holders Of stocks evidently realizing that
the Presidents policy If carried out