The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-01-20
MARKET LETTER
OF HENRY GLEWS

VI HLNnI 0lLWJ
The first week of 1911 has acted
better than its predecessors in 1910
and 1909, each of which signalized the
new year with a slump in values.
There was a distinctly more cheerful
sentiment and prices displayed an en-
couraging degree of strength. The
basis of improvement is the compare
lively easy condition of the money
market and prospects of it's continu-
ance. The end-of-the-year payments
have safely passed and funds will
soon begin to return more freely from
the interior. 1t is possible that the
Eastward movement of currency may
not be quite as early or large as at
one time expected, because of the
extensive borrowings of Western
farmers either to hold crops or to
invest in cattle for feeding purposes.
Funds, however, detained for these
legitimate purposes will find their
way later on to the financial centers.
Perhaps the strongest influences for
cheap money are the prevailing dull
ness of trade and the late decline in
both security and commodity values;
factors which have simultaneously re-
leased large amount of money and
increased it's efficiency.
Not only is the domestic money
market in very satisfactory condition,
but the same remark applies to the
international money markets. Easy
rates rpevail in London, Paris and
Berlin. The situation over there is
also favorable. Funds are plentiful
and there is every prospect that
Europe will be a good buyer of Sc
curities during 1911. This is parti-
cularly true of London, for the rea-
son that Great Britain is enjoying
extraordinary prosperity and will
have corresponding large amounts for
investment. The disposition of for
eign buyers towards American in
vestments is becoming distinctly more
friendly While the hostile attitude
manifested towards capital by our
various branches of Government-Na-
tional, State and city-is disliked
over there, this feeling is largely If
not more than counteracted by re-
cOgnition of the increased safeguards
which are at the same time being
thrown around American investments.
The fact that many of the exploita-
lions which disgraced our financial
operations in previous years could
not be now repeated, together with
the many restrictions now imposed
upon new issues, have done much to
regain the confidence of foreign in
vestors in American securities. 1t is
no exaggeration to say that the for
eign outlook for American invest
ments is exceptionally favorable, and
enough so to prove an important ele-
ment of support.
In the local situation there is also
! considerable betterment. This must
be credited to the growing ease in
money and better investment condi-
tons. There has been a mucn en-
larged demand for bonds, especially
those exempt from taxation, and the
low prices at which many good issues
can be had make them seem exceed
ingly attractive in comparison with
current rates Of interest. The same
remark applies to the better class
stocks whose dividend-paying abilities
are beyond question. The stock mar
ket, however, is inevitably Influenced
by the somewhat unsatisfactory con-
ditions Of home trade, by the delay
of the Tobacco and Oil decisions, and
by uncertainty as to what action will
be taken by the Interstate Commerce
Commission in regard to an advance
in railroad rates, AS soon as these
questions are out of the way the
stock market should exhibit increased
activity. While an early decision
from the Supreme Court is highly
desirable there would seem to be no