New-York tribune., 1910-07-15
FINANCIAL MARKET
Sterling Exchange at Lowest
Level in Almost Three Years.

on q light volume of business stock
market prices enjoyed decided improve
ment in the larger number of issues, at
tenpts by bear traders to induce a sell
ing movement meeting with no response
Sentiment was favorably affected by the
announcement that the Interstate Com
merce Commission would not suspend
the increased schedules on suburban
communication rates, on the theory that
the commission might grant increased
freight rates if the railroads could pre-
sent arguments as effective as those
offered in the case Of higher passenger
tariffs Wall Street may rest assured
that the commission will show no favor
itisn and Will decide the freight rate
cases entirely upon their merits The
general market exhibited its best
strength in the late dealings, even Anal
gamated Copper, which earlier in the
day sold off sharply, recovering with
c0ngidera bic vigor. its advance being
helped by a report that something Of
favorable import to the copper trade
soon would develop The copper in
d1rsrr-v At the moment is in need OF a
stimulating announcement, but what 1t
needs more than anything else is a pol
icv Of curtailment Of production. which
for months has been running far IN eX-
cess Of consumption. Commission houses
had some fair buying orders among the
-,--orninert stocks, especially in Reading
and Union Pacific but as rule transac-
+ions represented the operations Of high
: rho larger
number Of whom believed that the bear
side OF the market no longer was at
+ractive There wa TO material chahse
in money rates. bat sterling quotations
again declined. reaching level that
makes gold imports profitable. Demand
sterling touched the lowest level III al
most three years.
When hear operators in stocks put
forth malicious fables it is d good sign
that they have come to the end OF ther
+arher It has been shown that the re-
! cent alarming dispatches regarding the
alleged attitude Of Germany toward
Nicaragua were the offspring OF fertile
br+ iii conditioned brains of q class OF
srecuIators that place the financial COM
u1rity in d false position before tIe
country at large. and for this reason in
vestors and legitimate traders should be
on their guard for further manufactured
bear stories At this particular time, "hen
every effort will be made by interests
who have overstayed the short side OF
the market TO bring about frightened
Iio1Iidation by genuine holders Of secur-
ities. There is nothing in the general
situation OF an adverse nature that mas
not been discounted by the decline that
has taken place in stock market quota
tions. and there is nothing in the out
look that warrants the theory that the
intrinsic value Of American investment
issues IS on the down grade For many
months the iquidating movement IN
stocks was fully justified by conditions
that had their inception in the overspec-
ulation and overextension of credit OF
1905 and 1909. This liquidation eiilni-
mated the weak features from the situa-
tion and brought about readjustment
Of prices 10 d basis warranting invest
nent purchases, though It failed to i'm
press many spectators that quotations
could not decline indefinitely
Barring the improbable development
OF some national catastrophe, further
declines from prevailing Levels Will carry
the persistent shorts 10 a point where
besr panic viii develop. Stocks have
been accumulated ny the largest aggre-
cation OF capitalists in the country, and
such purchases have been made on the
certainty Of sales at materially higher
levels. The development Of q sustained
advance may not De sn affair or to-
DAY or tomorrow. but an indication that
the next big movement will be in the
direction of better prices is found in the
character OF the support offered on bear
attacks and the ease with which rallies
are accomplished. There will be no
money panic in the fall. for the good
reason that the banks throughout the
country are preparing a. this early
period Tor The heavy demands that
doubtless win be made upon their re-
sources III the autumn The chances are
they viii import gold for weeks to come
international money market conditions
are now favorable To this operation,
while they may not be later in the sea
son The Bank Of England made no
change IN its minimum rate OF discount