New-York tribune., 1910-12-22
FINANCIAL MARKETS
Sterling Exchange Weak, While
Money Rates Go to Lower
Levels.

On a. light volume Of business stock
market prices showed a firm undertone
throughout the day, with decided
strength in certain issues, notably Le-
high Valley, which enjoyed substantial
Improvement following the announce
ment Of the declaration OF a seni-annual
dividend of 5 per, cent, an increase OF
per cent for the six months. Both Le-
high Valley and Union Pacific are on
10 per cent annual basis, but the former
is selling almost ten points above the
Hartman issue. the difference being due
more to the current bull speculation in
Lehigh than to a lower actual value for
Union Pacific as based on Intrinsic
worth Nevertheless. in the long run
Lehigh Valley doubtless will far out
strip Union Pacific in market value, as
the company has potential possibilities
not possessed by the Hartman road.
There are some reasons to believe that
in time Lehigh Valley will become a sec
ond Lackawanna, which now pays 10
per cent regular and 10 per cent extra a
year on its shares.
Reading was favorably affected by the
advance in Lehigh Valley, and, while the
general market likewise responded to
some extent, there was no increase in
outside interest in the dealings and no
indicat ton In the general character Of the
days business of an expansion in public
operations in the immediate future, ex-
cept in the bond department, which
again gave a good account OF itself
United States Steel common, Reading,
Union Pacific and Lehigh Valley sup
piled the larger proportion Of the days
transactions. Speculation in Steel COM
mon continues in fair volume in spite of
the falling off in the corporations bust
ness, which is represented by operations
on basis of about so per cent Of blast
furnace capacity. According TO the
weekly summary of The Iron Age" the
expectation of lower prices is the dom
mating factor in the iron and steel in
dustry at the moment, buyers appar-
emily believing that lower figures will
be attained either through cooperation
OF the manufacturers or through an open
market, as in February last year.
The local money market is inactive TO
TIE thtSEI ol SldSltdtlOfl tOollI St1il anu
| time funds are easier. and from current
indications the end Of the year will pass
without a noteworthy hardening of
| rates, though the financing OF the Janu-
airy interest and dividend disbursements
doubtless will be accompanied by some
what higher quotations than those now
prevailing. It is estimated that January
payments Will exceed those Of any pre-
ceding month in the history Of the coun-
try, the total being placed in the neigh
borflood of S221, 600 900, the gain over
other interest periods being due to the
declaration Of initial dividends, to in
creases in dividends IN the year and 70
the large output of bond and note issues
III the last twelve months. The record
speaks well for the sounGness OF fUnda-
mental conditions in the country, and
should serve to silence the pessinistic
croakings Of many people who appear TO
believe that the bottom has been
| knocked out Of the industrial and rail-
road business in the United States.
Low rates for money here do not tend
to attract funds to this centre, and as
consequence no great increase in the
cash resources OF The local banks IS
looked for in the last two weeks of the
year, but If current quiet conditions in
trade run on for any length OF time cur
rency doubtless will move in volume 10
this centre for use in the market for
mortgage issues, while the first signs OF
trade improvement should be accom-
panied BY an active speculation in stocks
on borrowed money. There was sharp
decline in sterling exchange yesterday,
as a consequence Of heavy offerings Of
. cotton bills and liquidation by brokers
who recently accumulated exchange III
the expectation of rapid advance in the
last two weeks Of the month on end-of-