New-York tribune., 1910-03-31
FINANCIAL MARKET
STERLING RITES Up.
Foreign Exchange Conditions
Hclp to Ucakrcn Stock Prices.

Stock market prices moved toward
lower level throughout the FIVE hours of
business in Yesterdays trading, losses at
the close running from TO points in
the leading active issues. \ sensational
advance in the sterling exchange mar
5et and an absence of buying from COM
mission house circles encouraged selling
pressure from the professional element
while the reports OF various railroad
companies for the month of February,
showing material declines in net earn
ings, also contributed TO the enthusiasm
of bear operators. who we're particularly
active i'm the last TWO hours of trading.
There WAS no evidence Of investment
selling and no developments in the day
that warranted uneasiness on the part
Of actual owners OF American invest
ment securities. The lack Of support in
the standard issues naturally induced
operations on the short side of the mar
kct. and the pronounced Weakness in
such stocks as ST Paul, Reading, Union
Pacific, United States Steel and Atchison
evidently convinced the minor prophets
Of stock market movements that Ameri-
can investment properties were about 10
move into position of hopeless chaos.
There are certain conditions in tho
current situation that do not warrant the
purchase of stocks on borrowed money.
but there is nothing in the position OF
affairs affecting the intrinsic value Of
railway and industrial securities that
should encourage uneasiness on the part
Of holders Of these issues. The fact that
d Leligh Valley melon report failed yes
terday To check The bear movement
merely aocentuates tho belief ;hat Tor
the present, al least. bear spectators are
IN The majority. In increasing wages OF
employees the PENNSYLVANIA and certain
other companies have added large sum
10 their payrolls. This is a superficial
bear argument and the same thing may
be said of the announcement that the
members of the supreme Court will not
attend tie funeral of the late Justice
Brewer az Leavenwurth. Wall Street
bears interpret the decision of the Su-
prome court judges not 10 go 20 Kansas
as "A practical announcement that a
pauy case viii bc handed down next
Monday. The larger part of the dealings
i'm yesterdays market We're supplied by
ton issues, with the heaviest Transactions
in Reading, Union Pacific and United
states steel The metal shares were
weak features.
Unless foreign exchange conditions de-
81.
future gold viii be shipped from this
country 10 Europe next week. and pos
siily ~ the close of this week Demand
sterling advanced again yesterday, with
the closing level not far from the point
al which exports Of the metal could be
undertaken al a profit, the chances Of an
outward movement being intensified by
the difference between money rates here
and abroad. Money Was i'm strong de-
mand iu London and the cOntango on
American stocks la the settlement was
~ the unusually high quotation Of 5la
per cent, while al stool. exchange loans
lOT the next tao weeks were made IL Al.
per cent, against 4 per cent fortnight
ago. End Of the quarter settlements and
treasury borrowing viii serve To main
tain London money rates a. a high level
for some little time 10 come, while il Is
possible that the April interest and div
dend disbursements here viii bring about
firmor level H. our market, though iu
tho absence of an active stock market in
quiry Tor funds and tile movement Of
currency 10 this centre from The interior
no disturbance is looked for unless gold
shipments should reach heavy totals
Bett,Imcnt IN the foreign exchange situ-
alton as affecting New York depends on
foreign buying ~ American securities
and heavier exports of merchandise. At
The moment Europe is not bu, ing securi-
ties in this market. but it is interesting
10 mote that for Tho v".l. ouded Tuesd4a
shipments OF mer"nandi.e from this port
G. bowed au increase 4" the Naiu. Of 50
3a2.2ss over the preceding week aud an
increase II SS.Jos9l over the same time
le-. ,t4t-