New-York tribune., 1911-11-20
FINANCIAL MARKET
Improvement Reported in Stock
Prices and in Sentiment in
Bankinu Circles.

/ Noteworthy Improvement is reported
IN stock market prices and in stock mar
ket sentiment, and in business circles
ideas regarding the future OF money and
| business are more optimistic than re-
Gently noted. while industrial move
ments show actual Improvement In re-
tail and wholesale demand. At the mo-
ment there is reason to believe business
is pulling away from politics and that
J the uncertainties in the political outlook
will receive less consideration from Wall
Street and the industrial community III
the immediate future. Financers arc
more cheerful as a consequence of re-
cent developments. The acceptance ~
| the government OF the reorganization
! PIN of the American Tobacco Company.
| the decision of the Court of Commerce
| in favor of the transcontipental railroads
/ in the long and short haul clause and
signs of willingness on the part of our
| legislators and our captains of industry
/ TO get together on economic problems
confronting the nation on a basis that
will result in the greatest benefit 10 TIE
/ largest number of people have been ef-
/ fective influences In quieting fears over
the future, while they have been directly
responsible for increased buying Of high
grade securities for investment and
speculative account. Business is going
through a transition period that prom
| ises TO end with active expansion in all
I II. l.
/ of speculative operations and the recent
heavy advances in. their prices, doubtless
will not move TO higher points without
marked reactions, but experienced Wall
Street observers believe quotations
eventually will sell we'll above prevail
| ing levels
The railroads are beginning TO spend
money on rails and equipment in lib
eral manner. Increasing orders by the
transportation companies may not mean
much to the casual looker-on, but they
supply, nevertheless, a most significant
development Of better conditions in the
Industrial world and reflect the restora-
tion Of confidence in railroad and fnan-
cial circles. The iron and steel industry
is considered the barometer of trade, and
| it therefore is extremely encouraging TO
note the increased tonnage orders now
being received by the iron and steel COM
panies, Notwithstanding the fact that
prices are still so low that the margin Of
profit to the producing companies Of
finished steel materials is small It is
only a matter of time, however, when
quotations will move TO more remunera-
tie levels. THE Iron Age" the leading
authority in the trade, says in summing
up the situation in finished steel prod
ucts: a larger business in some of the
/ heavier lines a continuance OF the bet
ter buying by the railroads, lower prices
where there has been any change and
more offers from consumers to place
long time contracts. This last is the
most significant feature Of the Stua-
ton Copper metal market conditions
also show indications Of Improvement, a
reflection OF which is found in the higher
prices recently recorded for tho copper
and smelling stocks
Advancing prices in the stock market
and more optimistic sentiment in hnan-
cial circles have been accompanied by
reports Of impending large bond issues
by various railroad companies. Doubt
less the railroads would experience little
difficulty i'm finding a market for their
bonds, but the rumors Of heavy financing
through the sale of bonds appears rather
premature. Speculative Wall Street has
| the idea that the Atchisoa the Southern
/ Pacific, the New York Central and the
market for a large amount OF funds, but
/ bankers connected with the companies
deny that important financing is to bc
undertaken at this time. Atchison al
/ ready has a large issue Of convertible
| bonds 10 be sold as required. Southern
Pacific is in no immediate need of now
money, the New York Central doubtless
| eventually will issue d new mortgage TO
provide for the refunding of existing
bonds, while the Pennsylvania also may
make, though not at present. a new
issue Of bonds TO cover bonds falling
due in the course of the next few years.
Examination Of the Pennsylvania Rail-
roads latest available balance sheet
! shows that the company is we'll supplied
with working assets. and that unless the
management has in mind plans of which
the public has no knowledge it will not
be necessary to raise new funds in the
| immediate future. The railroads as a
rule have been conserving their re-
sources, and as q consequence they are
in strong cash position
Union Pacifics annual report shows an
increase of more than S71 100000 in its
profit and loss account for the twelve
months ended June 80 This profit and
loss credit represents cash and liquid as
sets which could be paid over to the
stockholders without disintegrating the
great Union Pacific system, but there
appears little chance Of any such dis
uibution. The common stock of the
Union Pacific Railroad possesses great
intrinsic and potential strength. and it is
not at all unlikely that its price some
day will sell on "a level with that OF the
Canadian Pacific. Hartman policies
n de a groat road of the Union Pacific.
which was in the hands of receivers not
many years ago, and it is quite evident
that Hartman policies are to continue.
The shares Of the hard coal roads are in
demand, in spite Of the possibility OF "a
miners strike az the expiration Of the
agreement between them and the opera
tors ir April, 1912, but i'm some quarters
it is thought the market FOR these issues
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