New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-18
FINANCIAL MARKET
Better Speculative Demand for
Stocks Fails to Attract
investors.

toward higher level under the innuenCe
of speculative buying For both accounts.
Fundamental factors in the general stu
alton are strong. but their effect upon
quotations has been less than that re-
sulting from a more optimistic sentiment
in Wall Street circles. induced by the de-
cision of the Supreme Court TO have the
American Tobacco and Standard Oh
cases reargued. and by a readjustment
Of ideas over the value OF various I'M
certainties in money. business and poll
tics as arguments for lower stock mar
ket figures. Recent gloom in the finan-
cial community was not warranted by
actual facts. while. on the other hand.
the cheerfulness that helped prices TO a
better range last week did not Justify
the exaggerated predictions by certain
speculative interests that a long. sus-
Tained bull market had developed. Mon
etary conditions at this centre and in
London do not favor bull boom at
present, but crop prospects, bank clear
ings and railroad earnings warrant sta
bflity in quotations and the investment
Of capital in high grade stocks and
mortgage issues.
Expansion of our industries continues
on a conservative scale. The general
volume Of business Is well in excess OF
that reported at this time a year ago.
and il also is heavier than at this period
in 1906, when industrial activity was
most pronounced. The crop prospects
have improved since April 1, and unless
extremely adverse weather conditions
develop in the rest Of the season the in
creased acreages Of cotton, wheat. corn
and other products OF the ground doubt
less will make the wealth Of the farms in
1910 greater than in any preceding year
In the history Of the United States
General factors in the situation should
create a better local and foreign demand
for American investments. but In View Of
the low position OF bank reserves at this
centre and the ability Of London to
draw gold from the United States ex-
tensive speculative commitments in
pear warranted at the present time.
especially as in the larger number Of
Issues prices fully measure intrinsic
worth. There are some issues. however,
that are entitled TO improvement as in
vestment propositions. as. for instance,
Pacific Coast common, which practically
is on 10 per cent basis, though il is
quoted in the neighborhood Of Ill, which
is far under the prevailing prices Of
many other securities Of 10 greater
actual worth and OF smaller dividend
yield.
At the close Of the last week indica-
tons were not wanting OF a wider public
inquiry for stocks that can be financed
on borrowed money than at any time in
recent months The improvement in the
demand was encouraged by the optimis-
tic letters OF speculative houses and by
the theory that the directors of the
United States Steel Corporation will in
crease the dividend on the concerns
common stock to a per cent basis at
their next quarterly meeting. The quar-
terly statement Of the corporation. which
viii be made public on April 20. doubt
less will show that net earnings for the
first three months Of the current year
have been in excess Of the returns Of
the December quarter, when net results
amounted 20 S40.971, 800. and IL is quite
probable that the record for the first
quarter OF 1910 together with the ex
cellent prospects for a heavy volume Of
business in the steel industry in the rest
Of the year. Will influence the directors to
establish the common stock in the > per
cent class. which would Justify a price in
the neighborhood OF par for the issue.
An easing off in foreign exchange
rates last week, due 10 the drawing Of
finance bills and a lighter demand for
remittance. as consequence Of a firmer
tone in the local money market, checked
the movement Of gold to London from
New York, but the general developments
in the sterling market did not remove
the possibility Of further shipments of the
precious metal. The position OF our trade
balance does not encourage period OF
cheap rates in foreign exchange. In the
month Of March imports Of merchandise
increased to the value OF SJO.0Sl. 100. as
compared with the corresponding time in
the preceding year, while for the sec
ond time since 1890 there was an ex-
cess Of imports over exports, the latter
falling under imports to the extent Of
SI9. 254.613. Heavier imports are aid
ing the federal Treasury. and it is a
noteworthy fact in connection with the
operation Of the new tariff law that Gus
toms receipts since last July have in
creased more than S3S.OoOoo over the
same time in the preceding fiscal year
And in the same period the deficit in
government revenue has declined on or
binary account from S10.G61.sl6 at this
period in 1909 to Sl7 .691. 23i at present.
The total deficit amounts to Si2.OG6.932,
against Sll5645.914 twelve months ago.
Imports in March have never been ex-
ceeded by the figures Of any preceding
month in the history Of the country, and
the gain in imports in the last nine
months Of 500 .245 2S1 also makes new
record in foreign trade statistics. Elk
ports Of merchandise increased in March
to the value 81 81 4O9.O 96, and for the
nine months. SJ1.S5l .l26. the excess Of
exports for the fiscal year to March 81
amounting 10 S1GS. 673. 30. decrease of
Sl79 .:}g3. 7:i5 from the corresponding time
I'm the year before. And this excess has
been wiped OFT by other known factors
that affect foreign exchange market con-
ditions. Money rates here are tending
toward q higher level. but they Will have
ill.,