New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-10

Stocks Up. Notwithstanding LOW
Bank Reserves

now CARRYING from % to 40 per cent more
in speculative accounts than they were
able to report at this time a month ago
Stocks that have been absorbed by COM
mission houses represent sales ny inter-
ests that accumulated securities at the
low points of the year and which nave
shown no reluctance TO satisfy the de-
mand at prevailing figures. despite the
fact that prices eventually must sell al
a higher level. Such sales, however
have been based on the theory that quo
tations viii move TO a materially lower
range before a sustained bull movement
/ can be brought about. II is true that IN
/ comparison with the price levels prevail
ing a year ago stocks as rule are cheap
az present, but this fact does not pre-
clude the possibility Of still cheaper fig
ures before the end OF 1910. especially
! as conditions governing the money mar
/ ket suggest the possibility Of rates for
1 loans that might compel extended liqui-
I dalton Of speculative accounts
Recent selling has been better than
the buying. and so far the character of
the dealings has not warranted the idea
that a big hull market is under way.
/ There has been, however. some good in
vestment buying, particularly in the bond
( department and when money begins TO
return in volume 20 this centre there
doubtless will be a substantial increase
! in the demand for mortgage issues. espe-
Cially If general business operations con
tlnUe to be conducted upon hand to
mouth basis Bank clearings are de
clining. but railroad gross earnings have
not Vet shown a sign Of great reaction
II our industries Railroad returns are
The last. as d rule. TO present evidence
Of a slaCkening trade. and it generally
/ happens that when visible indications of
q setback il business are reflected both in
/ hank clearings and transporta ton results
stock market quotations are at or about
/ the low point OF the season, as prices
! or the Stock Exchange always discount
/ changed conditions far in advance of
other markets. a hopeful sentiment is
noticed in business circles, and a long
/ Teriod Of dulness in trade is not looked
/ for Nevertheless with the presence of
various factors Of uncertainty dominat-
F. ing the situation, il is not likely that
4 improvement IN our industries will de-
velup until these uncertainties have been
entirely eliminated.
Decisions of vast Importance to our
railroad and industrial corporations have
Yet TO be handed down by the Supreme
Court. which convenes this week. while
Of secondary Importance is the final out
come OF the fight for higher freight rates
before the Interstate Commerce Com
mission. and although in some quarters
Of the Street il is contended that rulings
against the corporations have been dis
counted 10y stock market prices the gen
eral business community is unwilling to
make commitments for the future until
il knows whether or not it viii have 20
roadiust its affairs to new conditions
L the Standard Oil Company. the Amer
lean Tobacco Company and the Ameri-
can Sugar Refining Company should be
dissolved by a Supreme Court mandate.
Il the same thing should happen TO the
sC-called Hartman railroad merger and
the Interstate Commerce Commission
should decide that the railroads will
have To meet increased operating costs
by some method other than the raising
or rates. temporary confusion doubtless
would develop, but American industrial
corporations and railroad companies
would not be driven out Of business
There simply would he q reorganiZa-
ton Of affairs on a basis within the
law which ultimately would tend TO
strengthen the vested rights Of CAPT
tai According 70 opinions gathered by
American bankers from foreign investors.
there is less uneasiness abroad over
government regulation OF our corpora
. TiOns than there Is in Wall Street. In
deed. foreigners believe that present
( movements against corporal tons involve
. q policy OF safeguarding the interests of
people who have their funds in American
F Investment securities.
Local bank reserves are not in a po-
sition 10 stand the strain OF active bull
4 speculation in stocks at present without
the accompaniment of disturbance in
the money market especially as the de
man0 for currency from the interior has
not run its course. while there is little
/ proba bility Of d movement Of gold from
Europe TO this country in the current
+ autumn. The chances are more in favor
OF an outward movement of the metal
Furthermore. II Is quite probable that
London bankers viii not recede from
I their refusal to accept our cotton bills Of
.
autee. which. of course. would place an
additional strain on the local institu-
tons in financing exports Of the staple.
Bank loans are heavy at this centre and
throughout the country. Notwithstanding
the fact that there has been no active
speculation in stocks for many months,
although movements in the commodity
markets have involved the tying up Of
2 large amount Of credit Speculation
for the rise in cotton again is heavy.
and bull operators are confident that the
strength OF the raw material will not
interfere with exports and an increased
CONSUMPTION by domestic spinners, ow-
ing 10 low stocks on hand and actual
trade needs AL indications point TO
crop under the average. but II may not
~ safe 81 this period TO count upon a
Weld under normal requirements The
price Of cotton futures is high. and thera
is 50 much manipulation in the market
that current speculative operations in
the stable DO not lend an element Of
strength to the current Wall Street sit
UatiOn-
The portion Of the corn crop not Vet
assured is too small 10 kill the prospects
Of q record harvest. General production
from the ground this year viii add heav
ifv 10 our material wealth and later on
become a decided factor in encouraging
rising securities prices.
TRUST AND SURETY COMPANIES.