New-York tribune., 1910-08-22
FINANCIAL MARKET
Feeling of Greater Confidence in
the Financial Community.


early this year. and as a consequence
there soon will be more money available
for purchases I'm the general markets by
the agricultural community. which also
will add to transportation earnings while
| strengthening business conditions IN
general. Furthermore, the foreign de
mand for our wheat is increasing, a
| factor of the utmost importance at this
time owing to our unfavorable position
in international trade Underlying con-
ditions. including the final outcome of
! the crops, are gaining in strength, there
/ is more confidence in financial and buSl-
ness quarters over the future OF the
country's industries. loan market rates
are easier and bank reserves in New
| York are heavy at a time when large
resources are required and more rational
ideas prevail i'm Wall Street regarding
money. business and politics. The bust
ness situation is essentially sound. Ces-
sation of stock market liquidation and
marked recoveries in prices from the
low levels of July have created more
optimistic sentiment. both in and out of
financial circles and in view OF the low
quotations prevailing for railroad mort
age issues and the decline in interest
rates Il resumption of buying in the bond
market may soon be looked for.
Although stock market prices have
advanced from j to Is points since July
20. there appears to be no disposition
on the part of the more important in
terests to encourage an aggressive bull
campaign just now. The foundation Of
d wide bull market was made when Wall
Street went through its recent house
cleaning process, but in the opinion of
the best informed men In the Street
long sustained rise has not yet devel-
oped and Will not develop until after
the crops have been financed and va
rious uncertainties have been eliminated.
The course Of general affairs, however,
leaves no reason TO doubt the funda-
mental strength of the situation and the
great intrinsic value of our leading rail
road and industrial securities, while the
present quotation level suggests 10 the
conservative investor that there are still
many attractive bargains on the list
Ildl d WI III LuN lliSS a. NiANN' -
tive OF the possibility of further de-
cIines on speculative operations. 1t is
Ccntended in some quarters that the re-
cent advance represents nothing moro
than a secondary movement of n bear
market. and that prices viii work back
TO the low points of the year. and even
go TO a new low level before d real bull
ha ..11n
of such a setback need not worry cur
rent holders OF investment issues or
people who buy outright at prevailing
quotations. Eventually stocks will sell
many points above the present range.
Bond houses are conservatively bull
ish. They look for q better demand IN
the autumn, but they are not counting
upon a large business until the new
wear. when they believe there Will be
marked expansion in the inquiry, though
they do not take into account the posi-
bilitv Of such activity in the industrial
world that there Will be little money
availa BILE for use in the mortgage issue
market On the other hand, many bond
men believe our industries Will be quiet
and that cheap money will preVall-con-
ditions which, Of course, would tend TO
stimulate q demand for bonds. \ mem
Der of one of the largest bond houses in
the Street. in discussing the bond mar
ket outlook last week, said: From the
investors point of view, the doubt that
has been in many minds for months Is
beginning to disappear, as factors which
were expected to prove harmful are now
disappearing and sentiment is rather
hopeful. The present is the time to buy
No strong upward movement Is expected
for some time, as it Will take a while to
overcome the inertia that has existed
The change in the course Of prices is al
ways necessarily slow" The same
house expresses the fear that immedi-
ately the bond market begins to expand
the corporations and municipalities viii
put out large new issues, which might
serve to bring about cessation of buy
ing of the older securities and create
another condition of congestion. The
Improvement in sentiment among BUY
ers is reflected in a better demand for
New York City issues and the heavy
subscriptions to the recent sale of New
Call money is easy and time funds
have receded somewhat in recent days.
Time money for over the year was put
out last week as low as AZ per cent, but
the banks continued to maintain rela-
lively stiff rates on commercial paper.
the supply of which is not heavy For
ei2u exchange has advanced to a level
well above the gold importing point. and
unless Europe becomes an active buyer
of our securities or our bankers seek
loans abroad further gold engagements
for shipment TO this country need not be
looked for in the immediate present, in
spite of the probability of a large addi-
ton to the supply Of commercial bills
through exports Of our domestic prod
ilcts. Fortunately, we are entering the
crop moving period with heavy bank re-
serves. and at the moment there is moth
ing in the outlook that favors the idea
that outside assistance will be required
TO meet the autumn demand for funds.
Cur balance Of trade has about disap-
peared as a consequence of the growth
of imports since 1908. For the last
seven months exports Of merchandise
exceeded imports to the value Of only
s.. .666, ,364. compared with an excess Of
tho same time in 1909 of