New-York tribune., 1910-06-20
FINANCIAL MARKET
Stock Trading Dull and Money
Rates at an Easy Level.

I
joice in lower figures for securities are
afraid to make extended commitments
on the bear side Of speculation, while
on the other hand, traders who believe
that prices should advance are unwilling
to back their conviction by heavy pur-
chases on borrowed money despite the
fact that bank accommodation can be
secured at easy terms. The Street has
cultivated habit Of feeling uncertain
over everything that has a bearing upon
intrinsic values, and at the moment
there seems to be little prospect Of ac-
tivity on either side of the market Fun
6amental conditions have improved, the
larger number of securities are selling at
prices that represent a satisfactory in
come yield. weak bull accounts have
been HQuidated and Wall Streets bug
bear Congress soon will adjourn Crop
conditions indicate an average yield, and
as a result Of extensive liquidation in the
commodity markets our exports are in
creasing, with current indications sug-
gesting marked Improvement in this
country's position in foreign trade at no
distant period.
The factors named have not yet been
reflected in the stock market, but COM
mission houses believe that before the
summer is over there Will be a substan-
tial gain in speculative and investment
operations and material advance in
quotations, especially in the high class
railroad issues and the solid industrials
In dull markets such as Wall Street is
now experiencing important interests
who always have stocks to sell at high
figures are quiet buyers. Bond market
conditions at the moment are not favor
able TO bond houses, though prices and
factors affecting the real worth of mort
gage issues ought to attract capital to
this line of investments, the absence of
buying naturally suggesting a scarcity of
money available for investment pur-
poses. Money market rates and bank
holdings, however. do not bear out this
theory. Some observers assert the cur
rent dulness in the securities markets is
due to lack Of confidence on the part of
the general public regarding the future
Of the country's business activities, but
nothing can be found in basic conditions
that warrants any uneasiness over the
outlook The commercial agencies look
for quiet summer in trade circles. but
they find no indications of panic or de-
preston.
With the railroad bill law the trans
portation companies will adjust their
affairs to the new measure, which is in
tended to protect both the carrier and
the shipper, and in well informed quar-
ters it is believed that ultimately this
legislation will enhance the value of rail-
road securities, in spite of the statements
TO the contrary by interests who can find
nothing attractive in government regu-
lation Of the corporations. The railroads
are handling a big gross traffic and in
most cases are more than meeting divi-
dend requirements Ig it should be shown
later in the season that they cannot do
business at a profit on the present sched-
ule of rates the Interstate Commerce
Commission will help them out Of their
trouble by granting higher freight carry
ing charges. Incidentally, it is interest
ing to observe that the Central Railroad
Of New Jersey, which has been crying
for Increased freight rates and has ad-
vanced its communication fares, has de-
clared an extra dividend OF per cent to
its stockholders. And the poor old Mo-
bile & Ohio has placed its stock on g i
per cent basis, against 21a per cent last
year. Great Northern is earning be-
tween 10 and II per cent, compared with
SIS per cent shown q, year ago; Lehigh
Valley will show upward of Is per cent
for the current fiscal year, and Atchison
2 per cent more than common stock divi
Gend requirements. Even the Erie. with
two months earnings estimated, will
show q surplus after charges of almost
S5.00O,0o0 for the year that ends June so,
compared with an actual surplus in 1909
of S2,947,643.
Interior exchange Is in favor Of New
York, while the foreign exchange situa
ton suggests that in the event of aver
age crops and further liquidation of COM
modities this country will be able to
secure gold abroad in the autumn if the
needs Of the money market should be
come urgent Money promises to remain
at an easy level throughout the summer.
but higher quotations may be looked for
in the early fall as g consequence of the
usual withdrawal from this centre OF in
terror bank balances in connection with
the financing Of the harvests and of ex-
pected heavy demands for accom1noda- =
ton from the mercantile community
And it is not unlikely that at that time
the stock market will be something of
factor in the money market Further
more, II is quite probable that the fed
erai Treasury will be compelled to come
10 the market for funds incident to the
growing expenditures on Panama Canal
account. Foreign trade statistics for the
month Of May, issued last week show q
change in the trade balance in favor of
the United States, and they supply one
Of the most encouraging signs Of coming
improvement in the financial situation
recorded in many months. In recent
months imports of merchandise have
been running in excess Of exports, but
the May results present an increase Of
imports over exports TO the value of
more than S11,000,000. receipts Of foreign
goods for that period being lighter than
IN any preceding month since last Au-
gust Prices IN our markets are becom-
ing more attractive TO the foreign buyers.
TRUST AND SURETY COMPANIES.
Reported By Clinton Gilbert. No Wall street)