New-York tribune., 1910-03-21
FINANCIAL MARKET
MONEY RATES FTRMER
Stock Prices apparently Tend
iRg TOscOrd LOscer LeUels.

CLOSED the general tendency Of quotations
apparently is toward a lower level. The
conditions governing the actual worth
Of securities have not changed for the
worse; indeed. general influences under
Z lying tho business situation are making
for healthy trade expansion, but in
money and foreign exchange. in labor
troubles and uneasiness over the out
come Of government suits against cor
porations. and in the technical position
Of speculation arguments are found that
do not encourage operations for the rise
on the Stock Exchange. The people who
bought stocks al the low prices estab-
lished In the early part of February. as
a rule have taken their profits. and al
the moment the market is without the
support Of important new buying.
Much Of the buying I'm the early de-
cline last week represented the covering
Of short contracts and forced absorption
by interests who could not afford the de-
velopment Of Decentralization in specula-
tion Al that particular period. but un-
fortunately only a small proportion Of
the purchases we're for actual investment
account. Although bankers find a fair
market for new offerings over the coun-
ter there IS not much OF a demand for
the old issues, and the latter feature of
the investment situation is likely to con
tinue until tho new mortgage securities
have been marketed and digested. The
course Of money viii become more OF a
factor "a the securities markets from
now on and operators IN stocks who
may &c counting uPon continued ease in
call loans apparently are reckoning on
a theory that has no substantial reason
for existence. That call money has re-
nained relatively easy in the face OF de-
clining hank reserves Is due 10 the fact
that the banks have kept liquid funds on
hand for the purpose Of financing the
new city bond issue OF SJ0,0o0oOo. and
Sust as soon as this financing is under
taken call money will not be i'm plentiful
supply. while rates viii go higher. Time
money is distinctly hrmer. and the hard
ening tendency noted cannot be ignored.
The impression prevails I'm financial
circles that the new city corporate stock
will be oversubscribed. but as far as can
be ascertainod no definite foreign inquiry
for the issue has developed. though il is
generally believed that certain proper
ton OF the ~. eventually will go abroad.
The foreign demand for American Sc
curities FOR investment account is less
active than recently reported II there
should be a resumption Of European
buying i'm this market. not Offset by
speculative selling. which just now Is
quite heavy. tho exchange created 10y
such an operation might meet the Te-
quromonts of sterling transactions. but
otherwise this country doubtless viii be
compelled 20 ship gold i'm moderate vol
ume. owing 20 its adverse position in
/ foreign trade. Exports Of merchandise
T i'm February Ncre Fighter than in any
corresponding month since 1895. and
. were exceeded by imports 10 the value
- Si.S6S.s6o. the excess being the first
for any month since 1898. For the eight
months ended February IS total exports
were larger ;lan imports 20 the amount
1 Of sISSI-5.4is. against S3s1.S4G.S5i in the
preceding ytar and $605l5s.4@2 IN 1905.
the declining trade balance against this
country last year being due 40 lighter
shipments of food products and 10 an
enormous increase I'm imports. the latter
/ reaching Che larga total of S341.993. .026.
High prices here for commodities have
made our market poor one for the
buyer. but a good one for the seller, and
/ just as long IS the cNtraNaSant tender
ci,s among tho people of the United
States continue and Spectators are able
Ito maintain abnormal quotations for
staple products this unfaNorable situa-
tion viii prevail The farmers have
been holding back their grain and cotton
/ in the expectation 81 higher quotations.
but there is some hope that vith the
/ approach OF the new planting season and
the development Of winter wheat farm
/ reserves viii be- forced ou the market az
declining prices. y Is quite evident that
/ there win bc "A large increase in acreage
planted in iho agricultural sections -
the country this year. and ~ is estimated
/ that within the next ninety days upward
- Sso.eoo ooo viii be spent ip the South
in preparations incident 10 the cotton
crop ~ 1910 T'he demand for money m
connection with farm needs from an ia-
dicatious will De active IN tine course =
the next two ucnths, and the fact that
interior and logai bank loans already arA
F. heavily extended while reserves are not
large. should be- duiy considered in fg
uring On future mon,v market muAc-
ments in relation 20 agricultural re-
quiremcnts.
That eNtraordinarE conditions NAV de-
Nclop in the money market Is suggested
4 by the action 81 tho Bank of England ,n
/ advancing its discount rate from 10 {
I per cent al time II the year when usu-
4 ally it is difficult 90 make high rat"
/ effective. TIE advance in th- hani- r...-
I sh.es cl.ariy tliat Tho British Institution
not only has losI large amount of gold
I 20 other countries. but e,pects further
4 depletion in its holding ? >ud intends to
make active effort Ia SHIFT tao demand
Z 10 other centres. Local observer Of thc
money and foreign exchange markets be-
1 lievc that the advance in the Bank pf
England rate is the foreruuuvr of goia
4 shipments from the united States. and it
+ is interesting 10 note that already th-
higher discounts in London which ar"
4 veil above rates "a tlis point. have been
I cffC .iit, SOB advancing both sterling and
I cuntiucutals n the local foreign .AchauSe