New-York tribune., 1910-03-07
FINANCIAL MARK ET
STOCK PRICES UP.
Indications Point to Higher
Rates for Money.

: tAipIiS Ol likt ITplGSSlpudl elGIllPIl- 1Oill-
mission ho;:ses were not active factors in
! the dealings, as far as orders FOR public
| account We're concerned. and according to
/ the advices received from leading firms
there was nothing in the attitude of the
/ outsiders that suggested the development
! of heavy inquiry in the immediate
/ future. SO far advancing quotations have
! failed TO exert Il favorable effect upon
outside sentiment but it is conceivable
that in the event of further material i'm
provement in prices the public will return
to the market as il generally does after
stocks have enjoyed substantial sppre
citation following the collapse of bear
movement. The investment demand is
inactive and bond houses arc carrying a
large amount Of securities for which at
the moment there is a poor market
though some encouragement is found in
the ability Of bankers to place high grade
mortgage issues with foreign investors.
Outside New York the speculative posi-
ton in propositions not represented on
the local Stock Exchange is heavily ex-
tended. as reflected in the enormous in
crease in bank loans at other cities, and
more capital is moving into land booms
in the South and West and into irriga-
tion projects than into gilt-edged securi-
ties of railway and standard industrial
corporations.
An enormous amount of staple prod
ucts is held back from the mar rket, large
" carried on borrowed money. in the eX-
pectation that high prices for everything
will continue. and if anything should
happen to bring about q sudden decline
in prices a serious situation might de
Velop. owing to the oVereXtensiOn of
credit now reported. Something akin to
imitation exists in the country outside Of
New York. fostered by our unsound cur
rency system. which is adding to the
amount of national banknotes in circua-
ton and encouraging shipments of gold
10 other countries. The last report of the
condition of national banks to the Con-
troller Of the Currency. showing re-
sources as of January 81. contains fig
ures that should he carefully examined
by bankers and business men. as il pre-
sents striking changes from the report Of
the same time year ago and indicates
that at this centre the banks have been
liquidating their loans. while the banks
elsewhere have been extending credits at
a surprisingly rapid rate.
Loans and discounts of the New York
banks show a decrease in the Controllers s
compilation of So, 499 25S from the same
time last year: individual deposits. an
increase of $S7, ,627, 1913: other deposits
decrease of So $40. .699. and cash. a de-
crease of S16.2S1. .639 Exclusive Of this
city the banks of the United States re-
port the enormous increase in loans Of
S461, ,236. 40. an increase in individual
deposits of S491. .1a2,c771. a decrease in
other deposits of S12.0S3.252 and loss
in cash of SO, 756.315 The Wall Street
Journal" says that this exhibit is capable
York utterly underestimates the volume
of business and the substantial pros
perity Of the rest of the country. The
other possible deduction is that the rest
Of the country is in a condition of infla-
ton. while New York, by the recent re-
duction in the speculative account in
stocks and in other ways, has restored
itself to sounder basis. The latter
theory finds more believers here than the
idea that New York underestimates out
side conditions. There is, however. no
doubt that conditions among our lead
ing Industries are sound, a reflection of
which is found in trade barometers. but
even a blind man can see that prosperity
is breeding dangerous industrial 'booms''
in certain sections of the country
Easy money at this centre fails 10 at
tract an outside speculative demand for
securities. the chief buying at the mo-
ment representing the operations of the
professional element. while advancing
prices reflect this sort of trading and ac-
tive manipulation by large interests who
accumulated heavy lines of stocks at the
low levels recorded in the early part of
February. Since that time prices for the
leading active issues have advanced on
the basis of averages little more than
$ points, with much greater improve
ment in a number of individual stocks
such as Reading, Uniol. Pacific. United
States Steel and Amalgamated Copper.
The extent of the advance does not en-
courage the idea that the big men are
dCuluS materially 10 tHelT holdings at
current quotations. as their buying OPP
erations always take place when prices
are at a cheap range. Although there
are many securities upon which a fair
investment yield may be secured the ad-
vance of the last few weeks has deprived
the general list of the attractive features
that were so pronounced when prices
were falling under the pressure OF forced
liquidation and selling for short ac-
count. street sentiment however. is
bullish. and current indications point 10
price levels that will make securities still
less attractive as investment purchases.
An indication Of the Fundamental
strength Of conditions governing the
actual value Of investment securities is
found in the growth of bank clearngs
and the gain in railroad earnings. s
compared with wear a go and with this
time in 1906, when unusual industrial
prosperity prevailed Roads reporting
net returns for the month Of January
generally show substantial gains over
January. 1909. the Pennsylvania for in
stance. presenting an increase in gross Of
S.i.3IH.3Do and an Increase in net of
S1.olI1oo. The Hartman roads incIud-
inS the Erie and the Baltimore & Ohio
also made encouraging exhibits in spite
OF adverse weather conditions. Differ
ences between capital and labor over the
question of wages promise in most cases
10 be settled through arbitration, and il
the transportation companies are COM
pelled 70 increase their payrolls they will
be wholly justified i'll increasing freight