New-York tribune., 1911-01-02

will propose considerable reductions IN
tea duties so as to leave Tariff Reform
ers no margin for equivalents for the
taxation of bread and meat.
Cheap Money Expected.
Leverage for speculation will be found
In cheap money early In the new year
Notwithstanding political complications
monetary conditions have been easier
during the last twelve months than dur
ing the previous year: and while the
bank rate. which was changed from D
to AZ per cent on December l, Is ar'-
flcially maintained. successive reductione
may be confidently expected when money
is released In January dividends. Even
without cheap money prices nave not
sagged in leading sections of the STOCK
list: and when the bank rate falls De-
low 8 per cent there will be abundant
resources for investment and specuia-
ton. Holders of brewery shares nave
abandoned hope Of higher prices so long
as Mr.. Lloyd George is at the Treasury.
Cherries apathy is their portion. The
returns of British railway traffic are
however. most encouraging. and there Is
practical evidence that economies nave
been effected by the abandonment OF
Improbable competition, by improve
ments in engines and by cooperation IN
the maintenance Of workshops. Not only
railway shares, but all classes of indus
trial stocks as well. are attracting IN
vestors, for the general conditions OF
business are excellent and there is an
improved prospect of avoidance of labor
troubles through Cancellation processes
conducted by the Board Of Trade.
1t has been profitable year for bank
ing. and even with the numerous consoil-
dations of capital and resources it is not
likely that any prominent corporation
will show any reduction Of DIVIDEND
Concentrations have been required when
consols and other gilt edged securities
have been falling during the last ten
years, and it has been necessary to meet
this depreciation by offsets from current
profits In consequence of good times
and improved management bank shares
are likely to appeal to investors. al
though dividends have not been rising
during recent wears and consols have
fallen below 80 and reached level
which could only have been expected In
time OF foreign war. The imports of
gold from South Africa and other min
ing fields have been larger than ever be-
fore Every week as much as S3,J",-
600 in new gold comes into the London
market but there is no evidence that
much of it remains in the country. The
gold reserves of the Bank Of England
are not materially increased, and the
Joint stock banks are not strengthening
their resources for supporting it In
grave emergency.
Not onlv are the needs Of the indus
trial world outside the tight little king
dom" steadily increasing, so that more
gold is required for currency and Tor the
enlargement of productive resources, but
tllt llNlIlS tADtllSfN VI ili' N'ii- S~Nc
classes of investors are also running up.
There has to be a larger return from in
vestments for increased income; and
that is the real explanation of sagging
prices OF consols and gilt edged securi-
ties when the times are good, nearly all
industries in full operation and not the
smallest clouds In the circle Of the
European horizon. Home investments
are neglected and large consignnments
OF capital are made for mining, railway
industrial and other enterprises abroad,
because the ordinary returns for the use
of money are considered inadequate.
British investors have become by force
of circumstances more speculative than
they used 10 be In the new year. with
its promise Of cheap money before and
after coronation, they will watch in
tently for the first signs Of another rub
Der boom. |. N. r.