New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-05
FINANCIAL MARKET
No Encouragement for Bears in
Current Stock Speculation.


present position of the stock market or
IN conditions governing the actual worth
Of securities for operators with lean
Ing toward the bear side Of speculation
Efforts to bring about declining lever
of prices have not been successful. Sell
ing pressure is noted at times. but II
comes chiefly from weak bulls whose ac-
counts the bears are able occasionally
70 force upon the market. but deciihes
recorded in transactions of this charac-
ter as a rule are quickly recovered. Ihe
average Of the leading railroad and IN
dustrial issues is at the highest hSures
SO far recorded this year and ABOUT "
points above the range reported on May
| with the general tendency apparently
still in the direction of better quota
lions. There are few high grade stocks
end bonds that do not return at prevail
ing prices satisfactory return on the
money invested. while the cost of carry
ing them on speculative account Is prac-
tIcally paid by the dividends received
owing TO easy money market conditions
Weak marginal accounts are not much
In evidence. The general public is not
heavily interested in speculation ana the
bulk If the available supply of securl-
tics is held in strong financial hands
The two big uncertainties that nave
restricted business and stock market
operations for many months have been
eliminated from the situation. the out
look for large crops is promising. exports
Of our merchandise continue in volume
large enough 10 maintain large credf
balances for this country's account
abroad and money is in abundant sup
PLY for all requirements. An active Tor
ward business in our industries has not
Yet developed. but signs arc not wanting
uf coming gradual expansion in all
lines az trade. with an increasing in
curry for funds and higher rates for
loan accommodation before the end Of
the summer Bonds are in good demand
and new securities taken by bankers
find a ready market while the outlook
favors a large output of new issues by
tho railroads and industrial corporations
for future requirements incident 10 ex-
rected growth i'm business. reflection
81 the latter being found in the Great
Northern Railways mortgage for $500.
N000n. Of which 500 100000 is to he
reserved for tho acquisition and con
struct ton Of new lines, for terminal pur-
roses and for other OUTLAWS upon the
property The possibilities and Contin-
cencies or the future have been provided
for 10y Mr. Hill in his characteristic
manner and il appears safe TO predict
that one outcome of the authorization
Of the S6o0,0000o0 OF bonds viii he the
RAISING Of the full control Of the Bur
lingtou TO the Great Northern
40 one knows what form the reor-
eauizatiou Of the STANDARD oil and
American Tobacco companies will be
moulded upon, but every sensible man
knows that the dissolution and rehabih-
tation Of the companies will not involve
any loss TO holders Of the securities Of
the two concerns. The final position Of
the American Tobacco bonds cannot he
been operating i'm these issues have
hased their transactions on the sssump-
ton that the Is and the Is would be
retired al par. but it is now found that
there Is no actual provision in the in
denture for retirement in such an emer-
eency IL has arisen although the United
States Circuit Court in this district
which has been directed by the Supreme
Court 20 formulate q scheme Of reor-
eaniz4tiou for the company. will have
the power 10 retire the issues. and doubt
less il will do SO If IL believes such plan
i'm the hest interests of the holders. In
the mean time the course Of tho bonds
on the Stock Exchange doubtless will be
governed entirely by speculative consid-
erstions The decisions against the oil
and tobacco corporations have failed TO
f-ichten investors. and they have not
induced speculative hquida ton to any
extent. while the same thing may be said
of the cut i'm steel prices and the progress
of the Investigation by Congress into the
affairs of the United States steel Cor
poratio
People who like 10 estimate on the
effect OF the cut in steel prices on the
earnings Of the United States steel Cor
nor7tiou find that net earnings OF the
concern viii be affected to the extent Of
between 100000 and 100000 year.
hut they 90 not take into consideration
. tho fact that tho lower quotations doubt
less viii create large amount Of new