New-York tribune., 1910-11-14
FINANCIAL MARKETS
Stocks Down and Sterling Rates
Near Gold Importing Level.

market was materially improved last
week through enforced liquidation of
speculative accounts. and further selling
/ of this character would tend to strength
en- the monetary situation at this centre
and help to lay the foundation for nat
ural bull movement in the new year, as
Stunning that the new year is 20 witness
! expansion in our industries and no dis
turbing developments in money and poll
| ties. Spectators who were heavily COM
mitted to the bull side OF the market
prior to the election practically We're or
dered TO reduce their marginal holdings
following the victory Of the Democrats,
and this selling, together with bear press
ure and actual sales by people who were
alarmed over the size Of the Democratic
vote throughout the country. were effec-
tive in bringing about losses of from to
4 points from the levels prevailing i'm
rnediately preceding the battle of the ball
lots II may be recalled that big bull
boom was scheduled to develop on the
day following the election-that is bull
traders anxious to get out Of stocks on
an election rise confidently predicted
such a movement.
Wall Street eliminated Roosevelt ac-
cording TO its own ideas. but prices failed
TO respond in the manner forecasted. and.
while many traders who sold stocks We're
able to show small profits, the larger
part of the business was transacted at a
loss, especially that for the account of
operators who stayed up on Tuesday
night in order to buy stocks in the Lon
don market. A large amount Of stock
was taken in London in the expectation
Of the transaction showing a profit in
the local market on Wednesday morning,
but the only persons who made money by
losing their sleep Election Day night
were the spectators who sold in London
and covered here on the sharp decline the
next day. The ante-election market was
an unnatural and artificial affair, and its
climax was far from what the gullib1e
public was led to believe il would be
Fortunately the outside following in the
market has not been heavy, and accord
ing to current indications there will be
no extensive public participation in spec
ulative operations in the near future.
while at the moment there is little rea-
mart of Wall Street until conditions in
the money market become clearer and
the iron and steel trade begins to reflect
a resumption OF buying on large scale
by the railroads.
The untitled tonnage report Of the
United States Steel Corporation, as Of
October /, makes an unfavorable ex-
hibit as compared with preceding months
in the present year. but the actual
shrinkage compared with the falling off
in September shows a decrease of 9o932
tons. In August the shrinkage amounted
to 43S3 600 tons; in September to 3}lS,9352e
tons. and in October to 2S6.ooo tons AS
a matter of fact, the October statement
is more favorable than it appears on Its
face in comparison with former years, as
the basis upon which the figures have
haep complied has been changed so as TO
include only orders outside of the cor
poration's own interest. The total un-
/ filled tonnage on October 81 under the
new method was ., 81 $40 tons, while on
the old method il would have been s.
! 80. 900 tons. the latter figures comparing
with , or. 600 tons. the low record made
steel trade reports received by the local
offices Of the various companies do not
discourage the idea of increasing bust |
ness in 1911. At the same time business
has not grown in recent weeks to the eX-
tent predicted by the followers of the
market. The United States Steel Corpo-
ration. however. will end the year with
more than IS per cent earned on its COM
mon stock.
I.io,ljdation in loans against stock mar
ket commitments has served the useful
purpose of reducing to a small extent
+he excess of loans over deposits OF the
local Clearing House banks, but it VIII
require further substantial contraction
of loans and a large gain IN cash mold
;nes TO place the banks in a position
strong enough 10 finance successfully
sustained speculation for higher prices
in the stock market In view OF the
fact that quotations have enjoyed ma
teriaI advance from the low points of the
summer. net gains running from 10 to
20 points in the leading issues, there is
no especial incentive to operate for
higher, levels at a time when the money |
market is in an uncertain position and
the future of business is not clearly de-
fined but on declines however. good in
vestmcnt stocks should appeal to buy
ers who can finance their own operations.
Can money did not get above 494 per
cent last week. and eased off at the close,
while no change of importance was re
ported either in time funds CONNER
cial paper Sterling exchange was lower,
with demand rates not far from the gold
importing level.
As the Bank of England has made its
> Der cent discount rate effective, and at
the same time has added materially to
its reserve, il is thought in some local
quarters that the governors Of the in
stitution Will not oppose shipments of
gold to New York. but in well Informed
circles here and in London it is stated
that any demand for American account
at this period will be accompanied by
further rise In the English bank rate.
There is little probability Of shipments
Of the metal to this side, except, pos
siblv small Consignments secured from
the South African gold that is available
in the open London market every Mon
day While there also is little probability
Of emergency currency being taken out
by the New York banks. although re-
ports from Chicago suggest the probable