New-York tribune., 1910-06-27
FINANCIAL MARKET
Stocks and Bonds on Attractive
Investment Basis,

belt We're advanced as ample reason fol
bear pressure throughout the list, espe
cially as the course of prices for wheat
options in Chicago and at this centre
rose sharply. but professional sales OF
the Stock Exchange, however, failed tc
bring out investment holdings, while
they did not create alarm in circles
where supreme confidence is felt over
the future of the country's industries
| As a rule stocks are in strong hands
The liquidation of recent months has
/ concentrated the ownership of our lead
| ing issues among the strongest financia
/ interests, and il would seem as if the
extensive decline in quotations that has
taken place since the first of the year
/ about discounts possible future unfavor-
| able developments. The crops cannot be
killed in a day or a week, and exagger-
ated reports of adverse climatic condi-
tions cannot weaken the intrinsic value
/ of securities June always brings crop
scares. but such scares do not spell har-
vest failures.
According to the governments figures
of wheat conditions. as OF June ]. the
yield indicated was upward Of eighty
million bushels in excess of the crop OF
1909, and the damage that has been done
since that estimate could hardly have
been great enough to wipe out that IA
vora bic balance. Crop injury reports
come chiefly from the Northwest, and it
IN ind "a
are a few other farm lands in the United
States September wheat at Chicago sold
in the latter part of the last week more
than five cents higher than at the close
of the preceding week, the movement be-
ing one of the most remarkable incidents
of the current year in the grain market
particularly as trading in the Septem-
ber option represents dealings based on
the transition from the old crop sup
plies to the new. Corn and oats have
not been materially affected by the rise
| in wheat. and at this early period the
outlook favors normal yields of the first
named cereals. Commercial agencies
covering all parts of the country find 1r-
regularity in trade and little expectation
in business circles of any great actlV-
itv in the summer months; nevertheless,
as measured by bank clearings and rail-
road earnings the volume Of commercial
transactions is large in comparison with
a year ago.
Uncertainty over the outcome Of leg
islation at the national capital has been
eliminated from the situation, and the
financial and business community VIII
low adjust its affairs TO new laws az
/ fectiug various lines of trade which
should be materially benefited by the
new. enactments of Congress The
| transportation industry is dependent
upon the public. and the fact that law
/ has been passed which gives the Inter
state Commerce Commission enlarged
power to deal with matters affecting the
/ carrier and the shipper promises protec-
/ ton both for the railroads and the pub
lie in manner best calculated to serve
their mutual interests. The actual
worth of American railroad securities
will be strengthened by the provisions
of the railroad bill which was signed by
the President hast week, despite the ad-
verse criticism of the measure by many
railroad men. a prominent company
has just sold S222,J00,o00 Az per cent
equipment bonds, yet only a short time
ago a railroad president said: The
credit of the railroads in this country
has already been SO badly shattered by
the attacks that have been made upon
them during the last six months in
Washington that 1 believe it has been
almost totally destroyed by its action.
1 It will be almost impossible, in my Opin-
ion. for any railroad to secure a toan,
either here or abroad
Not only has q good market been
found for the equipment bonds men
toned, but in addition another company
! has placed 81. 100000 of its bonds with
Paris bankers since the passage of the
railroad bill. The credit of the railroad ds
has not been destroyed or weakened, but
the i'll advised and bad tempered state
ments of certain railroad men regarding
| legislation affecting corporations have
induced many investors TO make a need
/ less sacrifice OF their securities. Rail-
road credit is better to-day than 1t ever
! has been in the past and there are rea-
sons to believe that the companies that
need funds for new property and addi-
| tional facilities will experience no diff
Guilty in finding a market abroad for
new mortgage issues. Good bonds may
now be bought on AZ TO , per cent
basis, and good stocks on a AZ to q per
cent basis, which encourages the opin-
ion among the most conservative bank
ers that no mistake will he made in the
actual purchase of investment securities
at prevailing prices.
Money is easy. both in New York and
| London, and sterling exchange condi-
autumn, when rates for accommodation
at this centre doubtless viii advance to
! a materially higher level as q conse-
quence of trade demands and harvest
financing. Demand sterling is almost
two cents under the level reported at
this time last year, the difference being
ment in the financial situation in this
country as compared with a year ago,
while it certainly suggests that when
our exports Of commodities begin in vol
ume the market will be much more in
our favor. There was no time last year
when exchange warranted imports Of
gold. American bankers were heavy
borrowers abroad last summer, and the