The Washington times., 1911-03-19
STOCK MARKET ON A DEAD CENTER,
BUT CONDITIONS ARE BETTERING
System Optimistic Prospec-Du Days
Broke-The Long Lane Will Turn-Maket May Awaken
With Pat Kick.
DATER,
Of Publications

! market paid a little more attention to
the gossip credited TO Washington con-
cerning the date of the court decision
than for some time past, and there was
pronounced slowing down in profes-
slonal activity as early as Thursday on
| a report that Monday next would as
suredly bring lthe long deferred finding
in the trust cases. And another feature
ABOUT this matter was rather more
general feeling that the decision would
favor the Government, but the only rea-
son that brokers gave for this opinion
was the fact that the railways had
lost in the request for rate advances,
and the corporations had lost in the
franchise tax cases, and so they con
cluded that the industrial companies
might lose TO make the matter com
plete.
Franchise Taxes and Mexico.
So far as the market was concerned
however, the action of the Supreme
Court in affirming the constitutionality
of the corporation franchise tax was
void of any adverse influence, and, in
fact, 1t figured TO some extent as a bull
argument on the score that the Govern
meHt would not have to refund the
$2GOO0O00 already collected, and, in con-
sequence, would not have to issue a
large amount of new 3 per cent bonds.
In banking circles the most discussed
the action of the Government in mo-
bilizing the American troops in Texas.
While in nowise alarmed over this Incl
dent, banking interests do not like the
condition of affairs along the Mexican
frontier at all. They compare II to d
man with lighted lantern in a powder
magazine. No accident, of course, may
happen. but the situation is such that
an explosion might follow If the man
trlpped over pebble.
With so many other things TO hold
the market in check it is impossible
TO measure any direct influence of the
Mexican situation upon securities.
Stock prices have not been materially
affected by this matter or by the whole
combination OF unsettling features, but
there has been quite a decided falling
on In the investment demand for bonds
both from abroad and from domestic
investors within the week, and, in some
quarters, there was disposition TO at
tribute this more to the Mexican situa-
tlon than to anything else. An in
Nestor Is exceedingly cautious, and that
the affair along the Rio Grande might
reflect in diminished purchases of bonds
without affecting stocks is explained on
the score that the stock market Is large
" professional while real buying has
been in progress in bonds.
Short Term Notes and Bonds.
But II bonds have turned dull for the
present there is certainly no lack of
capital seeking investment at attractive
rates. This is evidenced by the re-
markable demand for Short-term notes.
Corporation borrowing through notes.
from the temporary character OF the
transa ction, is looked upon more In the
nature of banking than an investment
operation. No less than four Corpora-
tiOns authorized such issues during the
week, as follows: Missouri, Kansas and
Texas, $l2, ,50t1609 tWo-year at per cent
Pere Marquette. $500, 900 1ve-year at
: per cent; Amalgamated Copper. S12,-
Lake Shore. S12OOO,0OO 10000, 900 francs
one-year without an indicated rate per
cent This issue was discounted at
Paris to take up 100000 similar notes
discounted last year and TO provide
100000 additional money.