New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-14
FINANCIAL MARKET
Sterling Exchange Moves to a
Hiqher Level.

q
ket were light in volume, with the only
evidence of activity in the first and last
! hour Of trading, particularly IN the last
| hour, when the leading issues showed
| decided strength on an expanding VOL
ume Of business. The upward move
ment, which was led by Canadian Pa
cific. failed TO attract an outside demand
for securities, the chief buying coming
from the shorts and from speculative in
terests who found in various stocks an
opportunity for quick turn on the bull
side Of the market Operations OF the
latter character were pronounced IN
Canadian Pacific, which is largely held
abroad and which lent itself to bull
manipulation owing to the fact that the
source of supply for the issue will not be
available to-day and Monday, as the
London market suspended business last
night until Tuesday morning. There is
nothing new in the affairs Of the Cana
dian Pacific, although the rise in the
price of the stock has brought forth the
old rumor that the company viii take
over the Wabash and the Rock Island
a probability apparently so remote that
no one need give it the slightest thought.
The Canadian Pacific is a splendid prop
erty, and its gross earnings have in
creased more than S14,0OO,OOO since last
July, but at its present price the stock
of the company, including the dividend
| from the land department, yields only
! trifie more than 80 per cent There was
nothing at all convincing in the advance
| in the market yesterday as an indication
OF a long period of sustained improve
ment, and the chances are that If it had
not been for the manipulation in Cana
dian Pacific the general price level
would have ended at the net losses that
were foreshadowed in the midday deal
| ings. a feature Of the trading was the
dwindling interest shown in United
States Steel and the Hartman shares
In genuine bull markets these issues are
| leaders.
| According to the known movement or
money in the week the local banks have
gained more than 100000 in cash re-
sources, due in large part to a heavy ex-
| cess of receipts over shipments on the
| interior currency movement. If there
J has been a big reduction in loans most
! favorable Clearing House statement
should be made to-day. but the course
of money rates in recent days does not
suggest a large addition to the surplus
reserve. Rates for loans have not been
high, but they have been on firm basis,
with no tendency to decline from the
level established following the stiff fig
ures that prevailed several weeks ago.
Unless there should be a material set
back in the country's business, of which
there is now no indication, quotations
for loans doubtless will rule around the
current range for some time to come,
with a substantial advance in the
autumn. The present level does not in
volve any burden for operators in stocks
on borrowed funds. but this fact fails to
attract an active outside demand for
securities. The public is taking little
interest in the market, either in the
speculative or investment department,
and in spite os the success of local bank
ers IN placing new railroad bonds abroad
there has been no response in this mar
ket for established issues and no surety
that prices for mortgage issues will not
! gradually work to a lower level. Home
investors are not parting with their
| holdings, but they apparently have no
surplus funds for additional purchases.
Sterling exchange rates again moved
10 a higher level yesterday, and the
course of the market suggested that for
elgn purchases of American bonds would
have TO be far heavier than SO far re-
Dorted to maintain demand sterling at a
low level. Offerings or security bills in
the current exchange market are quickly
absorbed and no substantial help need
be looked for from our export trade for
months 10 come. The possibility Of
flow of gold from Paris to London is
suggested by tho advancing tendency of
French exchange on the British capital