New-York tribune., 1910-05-09
FINANCIAL MARKET
Importance of Foreign Buying of
American Securities.

/ 10 points. both groups in the decline
| that marked the course Of trading or
| Tuesday standing at the cheapest fig
ures of the current year. Conditions re-
/ sponsible for the downward movement
have been explained in this column al
various times and need no further COM
! ment now, but the fact that Wall Street
sentiment has undergone a complete
| change for the better in recent days
should not be accepted as a guarantee
that all obstacles to sustained bull oper-
ations have been removed. The money
factor has yet 10 be considered, and
! while rates for accommodation have
eased off and bank reserves show i'm
| provement over the exhibit of week
ago the actual position Of the money
| market does not warrant the accumula-
/ ton of large lines OF stocks upon bor-
rowed funds. The ultimate tendency Of
prices. however. should be in the dfrec-
ton Of higher levels. assuming that the
country is to be blessed with abundant
| hary ests and that our business enter
prises are to expand along conservative
lines in the rest of the year. The an
nounCSIuSIlI OIL lIl0 VI rNl1AS LII
ward on Friday caused a certain amount
Of liquidation in the local and London
markets, but it was not believed in
financial circles that the death of the
monarch would be followed by extensive
selling either at the British capital or
here. nor was it considered likely that
the accession of the new King would in
E,,e of oIrr railroad q
bonds in PaIis.
In respect to the crops 1t may be well
to point out that in the last few days
serious setbacks to a healthy growth
have developed in certain sections Of the
agricultural community. Dispatches re-
ceived from the wheat and corn regions
indicate lack Of moisture, especially In
the Northwest and Kansas. Winter
wheat reports do not suggest a large
yield. though spring wheat conditions
are far more favorable to a bountiful
crop, particularly as the acreage has
been increased. while the most trust
worthy accounts from the cotton belt
show that the recent injury to the plant
from the cold wave is not likely to re-
duce the final harvest to the low produc-
ton Of 1909. unless there should be a re-
turn Of distinctly adverse climatic con-
ditions. 1t is too early in the season to
predict either a fair or a poor harvest on
the farms, except perhaps in the case Of
winter wheat, the growth Of which un-
doubtedly has been stunted as q conse-
Quence of winter killing" and drouth,
and It Is therefore too early for specu-
lative commitments based on the theory
that the crops will be small or heavy
with a large surplus for shipment
abroad The Patten interests. however.
are bullish on wheat, and the course OF
the wheat market reflects the confidence
of many operators in the belief that win
ter wheat, at least, will make n d1sap-
pointing showing in the final gathering.
In the stock market crop conditions
received little attention in the week just
closed. owing to the overshadowing in
/ fuence upon sentiment of the reports
and actual announcements of successful
efforts on the part Of our bankers to
! find q European market for new secUr-
| fly offerings by various American rail-
roads The reports of large sales of
| American securities abroad and the de
velopment of a heavy speculative de-
n7and on the Stock Exchange for foreign
| account came when prices were at the
| low points Of the year. Moreover, these
reports. based on actual negotiations. as
| il was subsequently discovered. came
when the technical position of the mar
! ket encouraged 4. rally in prices, and the
extent Of the short interest and the sup
| port rendered by substantial banking
interests were reflected in an average
rise IN the prominent railroad shares
from the low Of Tuesday to the high
point of Thursday of more than 4 points
and more than ? points in the chief in
dustrials Whether or not the improve
ment Will run further will depend in
large part upon the extent to which the
short interest has been covered. the
| character of the response from the pub
| lie and the course of the money market.
all of which doubtless Will he known In
the transactions of the next few days.
Stocks. as a rule, are not dear at pre-
vailing levels, and they are we'll worth
the attention of actual investors and
/ people WHO Cdit ~ pdS JUL 81"
with the intention of holding for an in
definite period. Investors can now
secure q fair return on their money, but
in view of the uncertainty over the
future course Of money and the crops il
IS quite likely that in the light Of past
experiences and the probable active en-
plovment of funds in the channels Of
trade the so-cal1ed margin speCulating
public VIII not rush into the market TO
take the stocks which large individual
speculators and banking pools and syn
d;cates are anxious to dispose of at ad-
vancing prices. The outlook for the
bond dealers is far more encouraging
than il was a week ago. and the same
thing may be said Of the general invest
ment situation. Apprehension Of con-
gested bond market because of the large
amount Of unsold issues in dealers
hands and the expectation Of such a
situation becoming more pronounced as
a result of the new securities to be put
out bv the railroads has been dissipated
by the arrangements for the flOtation Of
new offerings abroad, and at the moment
this factor is the strongest influence
making for a more cheerful feeling in
banking circles.
The money market needed the relief
afforded by the announcement that our
/ adye-se DositioD In foreign trade would