New-York tribune., 1911-02-13
FINANCIAL MARKET
Current Indications Suggest
Hiqher Rates for Money.

In the nature of bear campaign vii
develop. In the event of decision
against the railroads by the Interstate
Commerce Commission passing declines
doubtless will be recorded, while IL the
Supreme Court should uphold the gov
ernment in it's suits against the Stand
ard Oil Company and the American To-
hacco Company bear operators may
have day or so of revel, but 1T appears
extremely improbable thot the banking
interests will permit more than tempo
rarv recessions. Bankers are financing
propositions the success OF which re-
oures stability in the stock market anc
confidence in investment circles. They
are preparing to go ahead with plans OF
vast importance 10 the financial ano
bpsiness community, irrespective Of the
outcome of the railroad rate question ano
Supreme Court decisions. and from the
present course of the stock market II
appears that capital is ready to take al
the securities that spectators may care
to sell in efforts to bring about lower
quotations.
In last weeks trading selling pressure
was pronounced at times, but declines
were quickly recovered. and at the close
the general average of prices both fof
the Industrial and railroad shares showed
hut an insignificant difference from the
final range of the week before. The fact
that the advance in quotations since the
first OF the year may have discounted
the Improvement that has taken place
in financial and business affairs does no'
demand a price change in the other OIL
rection. although il may involve n cessa-
,ion of bull activity. Speculation in re-
cent weeks has been ably handled
There has been no general oVerpuylns
and few weak accounts have been ac-
cun,ulated The market Is not top
heavy. Stocks sold have 10 large ex-
tent gone into the hands of people VINO
will not throw them on the market az
present. while there also has been big
distribution of stocks and bonds for per-
manent investment account. Conditions
governing the intrinsic worth of Ameri-
can securities are stronger than they
were a few months ago. sentiment III AL
quarters is improving and Europe is be-
ginning 10 participate in our new Issues
of railway mortgages.
Some of the larger banks have accu-
mulated unusually large cash reserves
which they are not putting out on call
under % per cent or in commercial
paper under 4 per cent. 1t is quite EVIL
dent that these concerns are looking for
higher rates for accommodation, Whlle i
also is evident that they are placing
themselves in a position TO prevent adj
verse developments in the stock marker
and to finance the requirements or cor
porations, which are expected TO DC
heavy borrowers throughout the year
Time money already shows q hardening
tendency, and in spite Of current sub
stantial bank reserves ii is believed that
the day is not far distant when mercan-
tile borrowers will be compelled 10 pay
higher price in order TO have their bills
discounted. The Bank Of England made
no change in its minimum rate Of dis
count last week, but the Imperial Bank
Of Germany reduced its quotation from
= to AZ per cent. Money. both at Ber-
lin and London. Is higher than the pre-
vailing rates here, but there IS good rea
son for the belief entertained in finan-
cial circles that the difference soon viii
! be adjusted 10y declining rates abroad
and advancing quotations in New York
while il also is believed that the
strength in the local sterling exchange
market will not hold for any length Of
/ time. The movement of currency from
/ the interior is beginning to show Z
smaller excess OF receipts in favor q
! New York, and the local banks no Longer
are gaining on their operations with the
/ Sub-Treasury.
The upper branch Of Congress ha:
passed a bill enabling the Secretary o
! the Treasury to issue : per cent Pan
anna bonds without the circulation priv
! ilege and It is quite likely that In,
! lower house will follow suit, in the even
/ Of which the money market will be callet
/ upon 10 finance a large issue Of thes
/ bonds, probably S1O9O0O.OO0 out Of M
authorized issue of S31J, 2eO9sO, OF whicl
J SS4 G31 $50 already has been sold
/ leaving q balance authorized, but un
/ issued. Of S2gu, $500 AntiCipatn;
! that Congress will pass the necessary
I legislation making possible an issue o
! Panama bonds without the banknOt
/ circulation provision, the Secretary o
! the Treasury has asked the nationa
I Legislature to repeal the sinking funC
( laws and 10 give him power in his dis
4 erection 10 use surplus moneys for th'
purchase or redemption Of the public
| debt. in his opinion and in the opinion o
most men the sinking fund laws bein:
! obsolete. At the present time the publi
! debt Of the United States is S1,3030D,
/ 600. and under existing laws the onl.
/ londs redeemable are the 3's of 1908 i
! Of which there are outstanding upWart
/ Of SG4 100000. II is the policy of Secre
/ tary MacNeagh 10 reduce the public deb
/ by purchases OF government bonds in tn
! open market or otherwise, as he ma!
/ deem proper.
! The metal markets show Improvement
and while the business in copper in thi
country in December and January, a
! shown by the Copper Producers AS
/ sociatiOn figures, has been unsatis
/ factory. the outlook is now more prom
Using. with every indication of an activ
buying of the metal for delivery ant
/ consumption in the near future. Tn
producers recently have sold heavily. an
/ i'm all probability there will be no con
cession obtainable from the presen
price of 1212 cents pound. New order
| for finished steel materials are nov
heavier than reported at any time il
| the last three months. The advance
week ago in the price Of wire and tn
recent marking up Of tin plate do no
suggest the probability Of lower quota
! tions in the general metal market. Mos
| commodities. however. are tendlnl