New-York tribune., 1910-11-28
FINANCIAL MARKETS
Stocks in Light Demand, Despite
Easier Rates for Money.


Easier Rates for Money.
Current transactions In the local stock
market are made up In large part or the
dealings Of the professional element, in
cluding the personal operations OF q
member of large banking house and
| several individuals who in the last year
have been uniformly successful in Stock
| Exchange speculation. The chief bank
Ing interests are doing little in the mar
ket. while the public is a negligible fac
| tor There has been great deal OF
manipulation in recent weeks that has
! failed to attract an outside demand 1or
| securities, and as a consequence the
market is extremely artificial and does
not appear safe for traders who have to
| depend upon borrowed funds 10 carry
| their accounts, despite the easier ten
/ dency in the money market ana the
willingness Of the Wall Street banks to
extend accommodation to spectators on
| a basis we'll under the level demanded
| from mercantile borrowers. AS RUE
| stocks are not cheap at prevailing fig
| rres. and many cautious observers OF
market movements believe that ire
| spective of favorable developments In
the world of money and business, quota
tions for the larger number of securl-
ties will go to lower range before
sustained bull campaign can be lnaoe
effective. FROM a technical point or we"
the market is not in strong posldoh'
The short interest is small anG certain
nools and individuals are carrying more
stock than their resources warrant TWO
factors which would tend to drive prices
down In the event of aggressive opera
| tions for the decline.
Improvement is reported in sentiment
! in financial and business circles over the
future Of the country's industries puI
In banking parlors and in the oIhces u
our large corporations there Is no dlspo-
sition to predict widespread demand
for stocks, either for speculative or IN
vestrnent account, until various uncer-
rainties in the current situation nave
| heen eliminated. While 1t may be taken
for granted that the railroads VIII come
| into the market for iron and steel ana
new equipment. 1t is safe to assume that
they will limit their purchases TO a nlilll-
mum basis until the railroad rate con-
troversy has been settled, and the TACT
that a settlement doubtless will not
| he sneedily reached discourages the idea
Of an immediate development Of great
| activity in the finished steel business.
| The railroads are making Dig nght LOT
higher rates, and the shippers are max
ing a strong opposition TO the proposed
advanced schedules. but In the END ths
railroads will again become heavy puy-
ers of rails and equipment. no matter
what the decision Of the Interstate eoll-
merce Commission may be.
IF IS not unnatural however, that
while the question is under discussion.
with the railroads threatening reduced
| dividends as a result of the rise in oper-
ating costs as shown by their pooNs'
there should not be an active demand
for railroad stocks at existing prices;
and in view of the decisions yet 10 come
in corporation cases before the supreme
Court involving the right OF certain cor
| -ora+ions TO do business under their
nresent organization. which the govern
! ,,en+ asserts is in violation Of the anti
.r,,et law. il is not surprising that the
n,hlic Is timid about placing its 1unds
in the shares Of Industrial concerns Al
though q government victory in cases
now pending will not wipe out 1naterial
| va1ues as the corporations concerned
| will reorganize to conform TO the law u
| is not possible at the moment TO con-
vince the ordinary investor OF TINS An
other factor that is restraining outSiue
participation in the stock market Is the
uncertainty over the course and charac-
+er of legislation at the coming session
of Congress and the feeling that the re
/ cent Democratic victory at the polls Will
cause a further postponement OF cur
rency reform.
Against the unfavorable features III
the present situation there are many
/ conditions that point to expansion IN our
| industries in the months to come, notaply
the strength Of our agricultural POSITION
which is something real and tanglpie
and which is adding intrinsic worth TO
American investments. Fundamental
conditions affecting the nations indus
tries are sound, and if they could only be
hacked by the surety of currency reform
would be marked increase IN the nome
and foreign demand for high grade
American investment issues. A some
what better market for our railroad
bonds is reported abroad. and bankers
who in recent weeks have financed new
| securities issues of railroad and indus
| trial companies have experienced little
difficulty in finding a market, although
from the point of view Of the issuing
comnanies the transactions have not
| been altogether satisfactory owing TO
the high price paid for the accommoda-
tion. Corporations and ordinary mercan-
tile borrowers are not receiving the same
consideration as accorded the Wall
Street speculator- In fact. there has
been a great deal of discrimination in
favor of Stock Exchange interests in re-
cent loan market operations
Reserves Of the local banks are now
larger than usually reported at this
period of the year. and it now looks as If
there would be nothing in the nature Of
disturbance in money in the last month
of the year. At this time IN 1868 call |
money ruled at from AZ to D per cent |
while in December a maximum OF Z per !
H. r1.xlrf.-