New-York tribune., 1910-01-17
FINANCIAL MARKET
STOCK PRICES DOWN.
Loan Rates Relar, but Indica-
tiOnS Do Not FaUor a Year
of Easy Money.

at the moment there is no indication
that the predicted January rise is about
to develop. The Rock Island episode
has furnished material for bear aggres-
siveness against prices while the realiz-
ing sales Of the semi professional ele-
ment have supplied additional ammuni-
ton for the advocates Of lower quota
tions. the liquidation in the latter move
ment. however. having been taken by
the market in manner that testifies to
its inherent strength. Market interests
who have been behind the bull specula-
ton In recent months have been COM
PEELED to increase their holdings at a
time when they doubtless contemplated
an active public demand for securities,
but the public has not shown an inclina-
ton to relieve Wall Street leaders of
their loads. despite the attractive invi-
tations extended. Prices. though we'll
under the high level of last October. are
still too dear to appeal to the ordinary
outsider There was no sign -of public
buying in the closing months of 1909,
and apparently public sentiment has not
changed with the new year. If how
ever, the current declining tendency con-
tinues, commission houses should soon
be able to report a substantial increase
in their business
remarkable conservatism has de-
veloped among people who make up the
sc-called public element in the stock
market In the matter of making specu-
lative commitments, and it is not i'm
probable that this spirit will prevail
CONGRESS-
the danger of labor disturbances is a
thing Of the past. The Washington ad-
ministration has made up its-mind that
legislation affecting the railways must
be enacted at the present session of
Congress, and while the character of this
suggested legislation is pretty generally
known. public interests are not salts
fed to buy securities at high prices,
with the possibility OF a speculative raid
on the market in the event that Wall
Street decides that the ideas Of our law
makers are opposed to the best inter
ests Of the transportation industry.
There is nothing in Mr. Taft's recon-
mendations that can be twisted into a
real bear argument on securities prices.
but cautious operators naturally will
not be inclined to buy stocks until thev
are more fully informed regarding the
sort OF legislation that these recommen-
dations will bring forth.
Condluons governing the actual worth
or securities are strong, and the read
Justment Of Stock Exchange prices to a
lower level does not reflect adverse de-
VeIopments in money or business Money
rates declined last week as a conse-
quence of increased receipts of currency
from the interior and the Houidation in
stocks, while sterling exchange was
strong, with demand quotations not far
from the point at which gold may be
shipped to Europe. Exports of merchan-
disc from this country are relatively
light, against expanding imports and for
the month Of December there is reported
a falling off in the exports of domestic
products to the value Of more than S13.-
100000 from the same time in the pre-
ceding year and S25,OOO,OOO from No
vember, 1909. Total exports of cotton.
foodstuffs, mineral oils, meats and dairy
products amounted in December to SSS-
299,O85, and for the year to 1897, ,772.-
S46, against S911.922,961 in 1908 and
export trade in two years to the extent
OF S129,552,2O1 in the face of rising i'm
ports goes long way toward explaining
the persistent strength in foreign ex-
change and the ease with which other
countries draw gold from the United
States. And falling exports and growing
imports indicate that the price situation
here makes our market favorable one
1or the seller and poor one for the
buyer. Extreme costs furnish a weak
point in a generally strong situation.
Seasonable winter weather STRENGTHENS
the chances Of a large winter wheat
yield, While the high prices of cotton en-
! courage the belief that the cotton acre
age VIII be materially increased, two i'm
portant factors in connection with our
foreign trade outlook. The whole cotton
growing world is going into cultivation
| on larger scale than ever before, and
yet it is reported from Washington that
some members Of Congress would have
legislation that practically would upset
the commercial mechanism by which our
raw cotton has been given world wide
market, to the great advantage of plant
| erS and manufacturers. Our exports of
SOLtOl III Tie last year amounted IN value
TO $461,376,575. Heavy speculative liqui-
dation Of cotton futures carried the
| price OF the staple to a lower level last
| week, but there appeared to be no
| change of opinion among the bulls who
| recently predicted cotton above II cents
| pound. People who are worried about
the high prices for all products and who
| blame the increased gold production of
! the last few years for the expensive cost
| Of living may be interested to know that
| in December the yield of the metal in
! the Transvaal was lighter than in any
/ preceding month of the year, and that
| from May 1 there has been a steady de-
! cline in the output Perhaps the high
| point of gold production in the gold pro-
| ducing countries has been passed.
In financial quarters it is believed that
! the current year will not be one of cheap
money. Money is well employed in the
! channels Of trade, and Wall Street no
| longer has at its disposal the enormous
| supplies that were temporarily displaced
! from the Industrial world by the business
| depression arising from the panic of
| 1907. Moreover, the concentration Of
| banking control now under way will en-
/ able the lending interests TO command
| high rates both for speculative and COM
| mercial operations. Regarding the cur
| rent combination of banking power
| prominent Wall Street house pointed out
| last week that a large amount of LIQUID
capital previously employed in railroad
and Industrial securities had gone out of
| such securities into bank and trust COM