New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-30
FINANCIAL MARKET.
Light Local Demand for Stocks
and Bonds.

are urging their customers and hoped for
customers to buy stocks. on the argument
that the sale TO foreign bankers OF new
American railroad bonds viii tend to adj
vance quotations on the local Stock Ex-
change, but so far the response to these
tation OF an active public demand for
securities in the immediate future. The
public apparently has no. intention Of
coming into the market at present, in
spite Of various factors that ordinarily
would be counted upon to bring about q
higher level Of prices, and in the absence
OF a demand from the outsiders the pro-
fessional element is unwilling to make
extended commitments for bull account
while it also is not disposed to operate
extensively on the short side, owing to
the fact that stocks as a rule are In
strong hands, and banking interests are
opposed to bear activity, because of the
need of a stable level of prices at a time
when negotiations are under way for the
placing abroad of our railway mortgage
issues. The sale to Europe of Ameri-
can securities which represent the finan
cial requirements of our transportation
companies of course reflects confidence
on the part of foreign bankers in our
credit and the strength of underlying
conditions here, but at the same time the
operation strengthens the power of
Europe to draw gold from the United
States, increases our interest obligations
abroad and indicates that our money is
so tied UP i'll various forms of specuIa-
ton that we have little surplus for legit-
innate investments.
The people OF the United States are
borrowing money abroad and are spend
ing vast sums abroad in connection with
travelling expenses and the purchase of
luxuries, and notwithstanding increased
gold production here the country is a
debtor nation and is likely to remain so
until the people spend more Of their
money at home and practise economy
We are good spenders. as is reflected in
our rising import trade, but we are spend
ing more than our wealth warrants,
and unless national, corporate and pri-
vate extravaganza is checked we will
run into one of those periods of financial
and business disturbance which so often
have interrupted the course of the coun-
try's industrial progress. Fortunately,
there are signs OF the development of
saner ideas among our people regarding
the question Of money, while there also
is a tendency on the part Of our bankers
TO bring about quiet liquidation of loan
accounts that have advanced TO danger
Gus levels as a consequence of borrow
ing totally apart from that based on
mercantile requirements.
The position Of the New York banks
is far stronger than reported a few
weeks ago, while among the Western
banks the policy Of reducing loans and
increasing reserves doubtless soon will
be adopted Uncertainty over the prob
able course of affairs in the rest of the
year, uneasiness over speculative loan
accounts outside this city and the in
flation in various lines of trade and
speculation have been important factors
in inducing the New York banks to
build up their reserves, and as a result
Of recent changes in bank holdings at
this centre the local financial situation
has been materially strengthened at the
opening of q season when the needs Of
the general business community may
make heavy demands upon bank re-
sources. Moreover, it is not improbable
that at no remote time the federal
Treasury may soon come into the market
for money in spite of gradually increas-
ing revenue receipts; and in the early
autumn this city will be called upon for
large amounts Of currency incident to
the gathering and marketing of the har-
| vests. <zs
| The working balance in the national
Treasury is less than S1SOO0OOO, while
I government funds in depositary banks
are too small to suggest Withdrawals,
and although the Secretary OF the Treas
ury has made no announcement regard
| ing an issue of Panama bonds or short
| term certificates. it is generally believed
in financial circles that he soon will be
compelled to do some heavy financing,
| especially as payments on canal account
are increasing. So far in the current
month disbursements on the Panama
Canal construction account amount 20
almost 100000. and for the fiscal year
! to date TO more than $50, 00000o, the lat
ter item comparing with excess receipts
over payments in the same time last
year of more than 100000. due to an
| income of more than $30OOOOoO from
the sale of Panama bonds. On ordinary
account the governments deficit since
July / stands at SIC, 120, 674, against a
deficit of S12414,424 in the correspond
ing period in the preceding year, with a
/ deficit on all accounts of SAG, 63S, 766
against S126, 249 917 In the year before
The total expenditures on Panama Canal
account TO the present time amount tc
a little more than $500, oo0,0 600 of which
$113 100000 can be returned TO the gen
eral fund OF the Treasury from the pro-
ceeds of bonds not yet sold. Congress
has authorized bonds TO the amount Of
1919, 200 $50 for the Panama Canal con-
amount of So, 631 $50 have been issued
Business conditions as summarized by
the commercial agencies are better than
they were few weeks ago, while the
outlook for d normal demand from con-
sumers in the various markets is much
more promising than recently reported
Improvement is noted in the iron and
steel trade, crop prospects are brighter