The Washington times., 1910-05-28
OBSTACLES IN WAY
Of STOCK MARKET
Land investments in West
Absorb Money-RailroadS
Have Difficulties.
CHenry CIe,rs weekly Market Letter.l

(Henry CIeyvs Weekly Market letter.
NEW YORK, May 2S-Efforts 10 lift
the stock market have thus far met
with only occasional success, and
arguments in favor Of higher prices
fail to enlist the desired attention o.
buyers. Whether this is because of a
suspicion that the big men have been
encouraging a rise for the purpose
of Riding themselves Of surplus
stocks, or else making a market for
pending new issues; or whether il is
due to other and as yet unrecognized
tendencies remains TO be seen. Com
pared with the high prices of last
year. good stocks certainly look cheap.
and yet there are some unpleasant
features developing, the outcome Of
which must be awaited with patience
Possibly the power to absorb stocks
has been temporarily impaired by re-
cent heavy issues, or else investors may
be holding back Tor better terms. In the
latter attitude they are meeting with
no little encouragement PHILADELPHIA
could not place a loan at per cent,
but might have succeeded at AZ per
cent, the Pennsylvania Railroad hay-
ing no difficulty in disposing of A
considerable issue on q 4 Y per cent
basis Chicago has just been obliged
10 pay y per cent for a new loan.
AT last the unprecedented demands
their effect
The monetary situation is also prob
4ematlcal, the present ease being largely
superficial Interior banks have beer
contracting their loans when possible
and sending funds 10 New York, the
result being an ample supply here of
can money. Bankers are wisely keep
Ing their funds well in hand.
Inc Western situation is attracting
much attention, because Of the consider
able oyer-eXpansiOn Of loans by Western
q n HHaH. 81
questioned stability There has been
a great land boom all through the west,
IN which State and National banks and
other financial Institutions have had
much 10 do In financing.
Western Land Boom.
While there has been an unquestioned
and healthy rise in land values, stiH
excess has broken out in many places.
and there is danger OF reaction With
SO large an amount OF funds locked
I'D IN such operations. the western
banks will be less able to take care of
Iue crops next fall than usual This
means nrm rates for money when
We ILe crop movement begins, and New
ork may be called upon for assistance
"a 10 d iarSer extent than for several
Little aid can be obtained from tba
treasury in event of a pinch. for Gov
eminent fumes are at a low ebb and
Ine borrowing capacity Of the Treas
I Wy ls also crippled, while there is no
prospect OF any thorough currency leg
lslaton during the present session OF
nsIess- me monetary movement
. .Ihereiore IS one which will require
cIose watching and skillful pilotfng dur
ing the next two or three months.
The Railroad Situation.
Our railroad situation is also not with
out us embarrassing features. Gross
earnings, IL is true. exhibit handsome
hfTf
corresponding gains, and in many casez
they are showing actual losses. The
litter may become still more anna rent
N ,hen the recent advances in wages be-
gin TO show their effect The railroads
had hoped to recoup themselves bv an
advance in rates To a limited extent
they have succeeded; but all further ef
IortS TO advance rates are sure to meet
with very strenuous opposition on the
part or shippers, and in the present
hostile attitude of public opinion. the
chances Of the railroads being able 70
compensate themselves for recent in
creased OUTLAWS is not at all brilliant
Business.
A slightly better tone is observable
IN the metal industries, and more &C
tivity is being shown In the iron trade.
although the Steel Corporation is only
running at about 20 PEI cent Of its full
capacity. crops are making fair pro-
greSs, the weather in the past few
A
stated in previous advices, good crops
are more vital to a continuance of good
business than any other single factor
and this year il is especially important
that the country have q good harvest
Our foreign trade continues to show a
oefciency In exports, but the recent
downward tendency Of commodities in
general should tend 10 restrain imports
End stimulate exports, thus restoring the
much desired equilibrium in our foreign
trade The decline in wheat IS an espe-
Cially favorable incident Fortunately
Europe IS in a much easier financial
position than expected. lessening the
probabilities of a further drain upon
cur gold supply, which would be very
Gnwelcome under existing circumstances.
The favorable features in the market
src these Satisfactory crop progress.
easy money until crop requirements be-
gin, and approaching adjournment Of
Congress, II may be that the market
leaders VIII be able 20 utilize these con
ditions as a basis for forcing a higher
market Upon all good rallies, however,
we should advise profit taking until in
trinsic conditions improve.