New-York tribune., 1910-05-25
BANK STOCKS ON STOCK E>
FINANCIAL MARKET
Sterling Exchange in New York
and Paris Declines.


ket We're confined IN large part to the
traders. Commission houses were prac-
ticaIly without orders for outside ac-
count, while their dealings for the larger
Wall Street operators who are not MEM
bers of the exchange reached small to-
tails and were made up chiefly Of pur-
chases in the metal group Reading and
the Hartman issues. Prices showed
fair degree Of strength in the early
trading. but the advance failed to at
tract an active demand on either side
of the market, while there was no indi-
cation of the development in the imme-
date future Of anything in the nature
OF an aggressive bull movement, despite
the encoura ging advices from the agri-
cultural section of the country, rela-
lively easy money rates and declining
commodity markets. Both the grain and
cotton markets moved toward a lower
level in the best part of the day without
being reflected to any extent in stock
market speculation An easier tendency
in sterling exchange also was without
effect upon speculative sentiment, al
though the decline encouraged a more
cheerful feeling in banking circles over
the prospects for improvement in for
eign exchange conditions, which for
many months have been against this
country. Exchange in Paris on London
also declined, and discounts at the lat
ter centre were decidedly easier. The
course Of French exchange yesterday
caused q revision of opinion regarding
the possibility of exports of gold from
Paris TO the British capital, notwith-
standing the reports that the St PauPs
-, ~ S59.O@O0o bonds were being Of
1ery.3 ~ Paris subject to issuance 1t
is Likely thai the 81 Paul deal will be
financed without shipments of the metal
by the transfer Of credits against the
purchase OF the bonds Il London for
the payment of our debts there Stocks
as q rule closed strong.
The present character Of trading in
the stock market does not suggest the
development in the immediate future Of
the big bull speculation that has been
so freely predicted IN certain quarters
Of the Street. On the other hand, there
appears to be little chance Of sus-
tained bear movement without the de-
velopment Of distinctly adverse condi-
tions in money, business and politics, of
which there are no Indications at the
moment. Business conditions as sum-
married by the country's leading COM
mercial agencies are stronger than they
were q few weeks ago, while the outlook
Cor a normal demand on the part Of
consumers in the various markets is far
more promising than recently reported
Improvement is noted in the iron and
steel trade, crop prospects are brighter
and commodity prices are falling. the
latter suggesting the probability OF ex-
pansion In our exports Of domestic prod
ucts and the readjustment Of foreign ex-
change rates to a lower level. Money Is
relatively easy at this centre, and bank
reserves are large, but our bankers ap-
parentIy are not disposed to encourage
activity on the long side Of stock mar
ket speculation. though they are work
ing 10 maintain stability in prices as
consequence of their efforts to find
foreign market for the security offerings
of American railroads that are in need
Of additional working capital in connec-
ton with the physical expansion and I'M
movement Of their properties,
Stocks as q rule are in strong hands.
but further quiet liquidation would tend
to strengthen the outlook for more
active market later in the season, espe-
ciaIIy II accompanied by a continuance
Of the liquidation now under way In
grain and cotton and an orderly liquida-
ton of the overextended bank loans in
the West The New York banks are ex-
tremely conservative in their loan oper-
ations at present, and they are building
up their reserves TO meet possible en1er-
gencies that may arise from the reckless
speculation in land in the West, from
the extravaganza Of the poor" farmers
and from the unprecedented demand for
money upon reserve cities by the coun-
try banks Furthermore, the New York
banks are mindful of the fact that they
viii be called upon this year as usual 70
finance the years harvests. and proba-
bly, federal government loan.