New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-22
FINANCIAL MARKET
Higher Foreign Discounts Re-
fIeCted in Firmer Exchange
Rates Here.

Actual liquidation and active bear
pressure We're responsible for heavy
losses in the price Of United States Steel
common and preferred. the movement
being based on trade conditions and on
The theory that the big Steel Corporation
will be compelled to go into voluntary
dissolution in order to comply with the
Supreme Courts Interpretation Of the
Sherman antitrust law, and that II II
does not dissolve itself the government
will bring suit against II. II is pertinent
to remark at this particular period that
the Standard Oil Company and the
American Tobacco Company are reor-
ganizing so as to conform TO the de
cision Of the Supreme Court ordering
them to dissolve without losing any
business and without jeopardizlng the
interests of their stockholders The re-
adjustment Of the affairs of corporations
to conform to the law does not involve
the confscation Of property or any re-
duction in the earning power OF the
properties concerned. Capital, however,
Is being made by stock market specula-
tors out Of the fact that new conditions
are forcing the countrys business
through a period Of readjustment, and.
unfortunately. Wall Street is interpreting
this reimbursement as wholly unfaVorable
10 vested funds. The course of prices on
the Stock Exchange and the unwar-
rante5 conclusions being formed In the
speculative community regarding the
outcome Of the present situation are at
fecting adversely sentiment in business
and investment circles, and the fact that
President Taft in his recent Detroit
speech upheld the Sherman law and init
mated that the Department Of Justice
would not be satisfied until all corpora
lions without the law had come within
the law is being used as club to
frighten investors into selling their secu-
rites in a declining market.
The best interests Of the people at
large demand that the corporations obey
the law. There Is nothing socialistic In
this and nothing calculated 10 destroy
real values Talk Of the United States
Steel Corporation dissolving is premature,
to say the least. The Department Of
Justice, so far as is known, has not even
limited that the concern, which controls
less than 50 per cent of the steel bust
ness in this country, is operating con-
trary to the law, and it is not likely that
the directors of the corporation Will
spend the large amount Of money that
the operation would cost TO dissolve
itself until II receives an official intima-
ton that II is under the ban. Total deal
ings in Steel common amounted TO Dr.
100 shares, the second heaviest daily
transaction in the issue in the history OF
the corporation, the record being made
ON October 6, 1909, with 636.500 shares.
In the preferred the total was 0l,S2O
shares while the total in all stocks was
I .263, $50 shares, the high record for the
year. The railroad stocks held sur
prtsingly well in view OF the violent
break in the Steel issues, as rule show
ing only fractional net losses, their
movement suggesting that liquidation
had about run its course in this depart
ment Of the market. Many traders COW
cred their shorts in the last hour, the
movement being without material effect
upon prices, but experienced operators
thought the foundation was being laid
for a sharp rally.
The Bank Of France, the Bank OF Eng
land, the Bank OF Belgium and the Bank
OF Austria advanced their minimum
rates Of discount yesterday. the change
by the French institution being the first
recorded since January %, 1908, when
the rate was reduced from 81. 10 3 per
cent The Bank Of France, of the great
central banking concerns in Europe. is
clone in showing smaller holdings OF
gold than reported at this time "a year
ago, and it is therefore not surprising
tn II has taken steps to strengthen It's
position, especially In view of the action
Of the Imperial Bank OF Germany and
the Bank Of England in advancing their
official rates. and 10 fortify itself for pos
sible contingencies that may be involved
in the Moroccan situation. Our foreign
exchange market Is some distance from
the gold exporting point. but with easy
money here and high quotations abroad
II is possible that some OF the yellow
M al uffII L IL a..