New-York tribune., 1910-12-26
FINANCIAL MARKET
Speculation in Stocks Light, but
Investment Buying Heavier.

Investment Buying Heavier.
A better investment situation Is re-
ported both at home and abroad. and IN
creased willingness on the part OF for
eisn capital to move into American is
sues is noted Speculation, however, is
| inactive. There is no public demand TOT
securities that have to be carried on
borrowed money, nor is there any lnol-
cation Of the development of such an IN
ouiry in the near future, although wall
Street is talking about a January boom
as a consequence OF the large amount
of money that will be distributed IN
| interest and dividends in the first week
Of the new year. OF the total disburse-
ments the larger part will be used fcr
living expenses, and the balance doubt
less will find its way into the invest
ment market rather than into the specu-
lative market, reflection of an expected
investment movement being found In the
current course Of bonds. Redeposits OF
January interest with the banks and
the usual return flow Of currency from
the interior should serve to bring ABOUT
an extremely easy money market AFTER
the first week Of 1911 and supply Wali
Street with the financial ammunition tor
a bull market on the Stock Exchange
but from the current attitude or tne
public 1t looks as If there would be h1tie
response from outsiders.
Absence of public participation. how
ever. does not preclude the possibility
of advancing prices. wall StEeee
larger interests are in a position to move
stocks to a higher level, and IL they 'eei
that the time is ripe for such a move
n1ent they doubtless will put through
a camraign of this character, Win tle
suretv that the public as usual Will ouy
when prices have discounted improve
ment in the business situation. Ii Is
asserted in many quarters that pre'aii-
in., price levels discount all that is pau
in the industrial world. and that at no
distant time the market will begin Io
anticipate the business expansion Iiiat
will 5evelop when the current PERIOD OIL
readiustment has run Its COURSE anu
when our large crops, oetler ioi e'e
trade conditions and cheaper prices loi
orr products begin to stimulate oe
usnd from consumers Quotatlohs ioi
-ao,,rit;es are we'll under the range re-
,or,ed at this time last year, anu al
current figures reasonable returns lucy
la secure6. If money continues TO rule
~ relatively easv rates interest bearing
-oo,,-;,;es viii be in better demand
,fanv of the best railroad stocks are Sell
ing on a basis that yields from 4 10
,er cent. while first class moftsase
sues NAV be bought for return OF irolh
1 to az per cent
Among railroad men the belief Is grow
inc, that the Interstate Commerce Coiii-
,,;sr;on will allow certain changes IN
r.+a schedules that will bring higher
TRANSFORMATION rates. although tlie i"ii
advances asked for are not eApecleu'
The uncertainty over the rate question
soon will be settled. and no matter "ha'
the decision may be the railroads VIII
,,e conpeIled to come into the market
for rails and supplies, while they also
,-;,, come into the market for money just
as soon as they know just how they
etsn6 with the powerful government
! commission in the matter OF rates diio
other questions affecting their welfare
Requirements of our railroads for ne"
cspitaI are pressing. a1ld there Is no
reason to- suppose that they VIII not
soon be able to finance new Undertakings
on satisfactory terms, as IT Is not con-
ceivable that the growing tendency or
government regulation OF corporations
doing an interstate business VIII oe-
veIop anything that will upset the credit
/ OF the country's great transportation
cor,panies. The street numbers many
,assimists but among its members, but
their gloomy forecasts for the new year
are altogether too sad TO be reasonable
The railroads will receive fair treat
--ani from the Interstate Commerce
Commission. and the country will con-
t,nue to ship freight. Business pros
nects are not as bad as painted, ana
the mere fact that the iron and steel In
dustry is operating on a basis Of about
one-half of capacity does not spell COM
mercial panic. It Is quite likely that
steel prices will be reduced by co-opera-
ton among the large producers or by the
establishment Of an open market. and 1t
! is ouite certain that with lower quota
| tions demand for consumption VIII
quicken. The United States gathered
from its farms in the current year
nroducts Of a total money value OF ap-
nroximately S9, GOO, ,OO0. 900. which will not
lie idle in the banks. The country is
going through process Of readjustment
that IS creating sounder and stronger
fundamental conditions. Eventually this
readiustment will be reflected in the de-
| xe1onment of business along safer lines
lines that will possess the element Of
more permanent prosperity than recorded
in the past. In January the interest and
dividend disbursements will be heavier
than ever recorded and will aggregate
500. coo, coo. Such results do not sug-
sest anything alarming in the situation.
The local money market is inactive to
the extent OF stagnation, and II now ap-
pears probable that the end Of tbs year
will pass without a noteworthy advance
in loan quotations, though the financing
Of the January payments may cause a,
passing firner tendency. London and
New York money markets practically are
ON q, par, and as easy money is looked
\ evils, orfc cf bn