New-York tribune., 1910-05-23
FINANCIAL MARKET
Light Speculative and Invest
ment Trading in Securities.

nent. There is practically no commits
sion house business for the account o.
the public, and apparently the stimuli.
Of some exciting development will be re-
quired TO attract an active demand fror
outside SPECTATORS, who for many weeks
have shown an entire lack of interest in
the course of affairs in Wall Street The
investment market likewise is inactive
Dealings in railway mortgage issues
both on the exchange and over the
counter, are confined TO unimportant
totals. the recent moderate improve
ment, based upon the report of sales of
new railroad bonds to Europe, having
disappeared. with no indication of a re-
sumption of buying in the immediate
future. Prices. however, hold remark
ably firm in both departments of the
market, and according to the opinion of
the best informed men in the financial
community there viii be no material
slump from current levels unless there
should be a distinctly anfavorable
change in conditions governing the in
trinsic value Of American Investment
securities. Stocks as a rule are in strong
hands. and the powerful financial inter
ests can be depended upon to work for
stability in market prices, particularly
as the success Of the financing Of the re-
quirements OF various railroads depends
TO g Large extent upon a firm level of
prices for investment issues OF estab-
lished reputation.
The fact that our railroads are unable
TO secure the accommodation they desire
at home and are compelled to pay a
good price abroad for the money pre-
sents one of the few weak features of
the present situation. but this view of
the placing Of large amounts OF Ameri-
can securities with European bankers
does not appeal to Wall Street. although
there are signs that the country at large
is not satisfied that borrowing abroad is
a bull argument on the stock market
While our ability to sell securities to
Paris bankers reflects confidence on the
part Of the latter In this country's credit.
1t means big increase in our interest
obligations to Europe, and it STRENGTHENS
the hold Of Europe upon our gold sup.
this country is on the wrong side Of the
ledger in its foreign trade, and, further
more, We are sending immense sums to
foreign capitals representing travellers
expenses and funds sent home by irnni-
grants who have prospered here Our
prices for commodities are too high to
give us a favorable market for export
Nd in l.
tract tremendous imports Of merchsn-
disc. For the ten months ended ApriI
80 our imports showed an increase to
the value Of $247,064, ,912, against an in
crease in exports In the same time of
S63. 723. 169.
In spite Of moderately heavy bank re-
serves at this centre local banks are
making no important concessions in
rates for money. Call and time quota
tions are higher than they were earlier
in the season, when bank holdings were
lighter than reported at present, and the
efforts OF our bankers to strengthen re-
serves above legal requirements, their
firm attitude in the matter of rates on
loans and their close scrutiny Of col
possibilities the development Of which
would cause some disturbance in 2
money market unsupported by a strong
position on the part Of the financial in
stitutions. And the same thing NAV he
SAID OF the situation in London, which is
in the maintenance Of q 4 na,
cent rate by the Bank of England in the
face of a proportion OF reserve to liabil- |
lty much higher than ordinarily reported
at this period of the year. It is a NOTE
worthy fact that the 4 per cent rate did |
not prevent an outward movement of |
gold from the British institution last |
week, while it also is worthy Of note that
relatively. high money quotations hero
and the expectation of big offerings of |
olls against American securities sold to |
Europe failed TO keep sterling exchange |
from advancing
Loans reported by the New York
banks are not excessive. and thev .ra
well secured, but the same thing can
not be said of bank conditions in tbe
West, where loan accounts have bee,,
unduly swollen by speculative onera-
tlons IN some instances of a doubtful
character. There has been a tremendous
increase ia bank loans outside New York
in the last year, while at this centre tba
oan item in Saturdays exhibit of the
Clearing House showed a decline of
from the same time 2 wear
ago and d decline of $35. .S97. 900 from,
l@lS. The interior demand for currency
S increasing, but the local banks con-
-inue to gain on their operations with
he Sub-Treasury, despite the fact that
he federal Treasury shows for fhe
month 10 date an excess Of receipts over
on ordinary account of
j, 400, 426. ON all movements. however.
he Treasury shows deficit SO far in
Nay of S790,23S, compared with 2.
ieficit for the corresponding period last
year of SO 521, ,135. For the fiscal wear
he deficit on all accounts is S43, ,TO3. .527.
against one Of $127,25S, ,647 in 1909. The
Effect of the new tariff law upon The
governments ordinary receipts is re-
iected in a constantly diminishing def
cit, which now amounts to only S15.-
'03.396, as compared with So, ,903, 129 at
his period a year ago.
Current dulneSs in the stock market |
makes small commissions for Wall
Street brokerage firms, but the luII in
speculation VIII not upset the country.