New-York tribune., 1910-10-31
FINANCIAL MARKETS
Signs of Hardening Money Rates
Receive Little Attention in
Speculative Circles.

publican success at the polls IN this
state. which. according 20 SPECTATORS
would mean the injection Of Roosevelt
policies into future legislation at Al
bany. Roosevelt policies started the cru
sade against dishonesty in the manage
ment of corporations. and if these poll
cles are 10 be continued SO much the
better for the holders of American rail-
read and industrial securities. Wall
Street does not place itself in a favor
able light when it opposes policy that
aims for a higher level of business
morals. and If il looks TO the Murphy
brand of politics to bring about i'm
provement in intrinsic values it is going
10 be nightly mistaken if by chance
Tammanv Hall should get its grip upon
our state capitol. Speculative values
might be helped for time, and it is not
unlikely that in the event Of the cleo
ton Of Mr.. Dix aggressive efforts viii
be made by substantial interests who
have stocks for sale to encourage a
sharp inward movement following No
vember :. while It also is possible that
in the current week bear traders may
be able TO force lower prices on the
theory Of q Republican victory.
General conditions affecting the under
lying worth Of securities are sound, but
stock market quotations have been do
ing good deal Of discounting Of the
iu1proyement that is looked for in the
business situation Moreover, as money
market factors do not warrant heavy
buviny Of stocks upon borrowed funds
II IS conceivable that continued active
speculation for the rise may be sharply
checked by an advance in money rates,
although the little traders who are fol-
lowing the lead OF larger interests feel
opite convinced that the latter have
made ample financial provision for push
ing the market up irrespective Of future
developments in money. The bull move
r,,en+ has been ably conducted so far,
and low bank reserves have neither dis
couragpd blving on small margins nor
have. they been effective in placing loan
quotations at high figures. but the con-
s+a0f expansion in loans and the
deyindliug Of cash at this centre DO not
make for 3 strong speculative situation
especiallv as a large amount OF stock
recently has passed from strong to weak
hands. From the low prices Of the sum-
u7er the average price for the leading
railroad shares shows a gain OF l24I
,oints. while that Of the chief industrials
nreeents an advance Of 12.3S, the cur
rent level Of lis for the railroads ana ."
for the jndustrials comparing with l-o-.'"
and % 04 respectively, at this time IN
1Qrq There still are good opportunities
for the investment OF money in stocks
~ Weld a satisfactory income, but bet
ter chances viii develop if anything IN
The nature Of disturbance should come
10 the money market.
The local money market is in an uncer-
tain position. with indications pointing 10
higher rates. regardless Of the course OF
enecllation on the Stock Exchange
o-eyv York banks continue TO lose money
r. -be Sub-Treasury and on their direct
onarations with the interior, but fortu-
na-eIv the prospects OF shipments % sola
10 F-,,rone are less promising than re-
oorred 2 week ago. The Bank Of Eng
lands higher discount rate has been ef-
f
metal in the British capital, and the
,,-Iliuguess Of the Bank Of France TO
1and assistance 10 the British institution
removes for the time. at least, dah-
ee. that recently threatened TO cause
considerable l1nsettlement in the inter
national money market. Local bank
! holdings are not 50 strong IS reported
! at -1is time last wear. and an advancing
tendency in Western money rates does
not suggest an active movement of cur
rancv TO this point in the immediate
/ future. More currency is going from
New York than at this period year
ago. the federal Treasury continues 70
show an excess of receipts over eX-
/ neodir,lrec. 50 far as its operations here
are concerned. and sterling exchange.
while showing q somewhat easier tone
1 does not hold cut the hope Of gold i'm
/ rorts at any time IN the rest OF the year.
! The factors named supply no reason for
uneasiuess. but they do furnish an argu-
r1ent against extended commitments on
borrowed money in the stock market
II is reported ia the Street that an
enormous number of calls on United
states steel common good until January
/ have been purchased in London, while
the general character Of the speculation
in the issue on the Stock Exchange de
notes increased confidence in the theory
that its price viii move to "A higher level
before The end OF the year. Eventually
steel common should sell above par on
its merits The report of the corporation
for the September quarter makes most
excellent showing. in Wow Of the falling
of in new business in the summer
months. and assures total earnings for
the wear equal TO 111l per cent on the
common, without any profits at al in the
last quarter Of 1910. i is quite evident
that the last quarters results Will not be
a. favorable as those for the three
months ended on September 30, bat the
chances are THAI there viii be surplus
avail ble for the common dividend OF at
least . per cent, bringing the total for
The twelve months to a little more than
L. per cent, against the , per cent re-
auired. And this showing viii be in the
face Of appropriations from earnings for
new construction Of So. 100000 or more.
United states Steel common appears TO
be moving into tho list Of safe invest
monts.
An increase IN the dividend on Con
soIidated Gas 10 a . per cent basis
caused no surprise in circles where the