New-York tribune., 1911-03-13
FINANCIAL MARKET
Offerings Of New Bonds Readily
Absorbed by Home and
Foreign Capital.


ducted in fair volume. offerings OF new
bonds arc quickly taken by home ana
foreign capital. and there is no reason 10
snppose that any difficulty Will be eA-
rerienced In finding a good market lot
high Grade issues at any time in the
year. as a large amount OF money 's
seeking investment. while confidence is
growing I'm all circles that we are enter
ms a long period Of stability IN o'r
money and business affairs. various
y, u,certainties. as. for instance. the out
come of the corporation cases now before
! the Supreme Court and the factors IN
yolyed in the Mexican situation ser'e 10
restrain speculative activity on the StocK
Exchange. but they are causing no uh-
| easiness in the banking community
| The development of adverse conditions
would find the market In a strong posi-
ton TO resist professional attacks upon
prices. Commission house accounts as
a rule are heavily margined. and pupic
operators who are carrying stocks on
borrowed money are people OF means anu
experience in Wall Street speculation.
There IS no overextended bull account,
nothing in the nature OF harmS::l manip-
ulation is going on. and prices are not
quoted at a fictitious level. The banks
have more money than they can !end'
and II their reserves should shrink they
would. owing to international money
market conditions. be able to strengthen
their holdings through imports OF golo
T. I'M Europe.
The local money market IS quiet at the
moment. but an Increased interior de-
mand for New York funds is reported.
Domestic exchange at Western cities Is
moving against this centre, and II is not
unlikely that the usual spring inquiry
for currency incident TO the planting or
the crops and mercantile requirements
will cause the withdrawal OF consid-
erable amount OF money from the local
banks in the current month and ~
April. although the movement in Itself
Is not likely TO be heavy enough to be-
come an important factor in the course
OF loan quotations. The monetary still
alton is far stronger than II was at thls
time last year, when foreign exchans :
rates Were high enough 20 drive golo
from the country and when we had no
credit balance abroad. Just now New
York is lending money in London. we
are piling up a large credit balance III
that city as a consequence OF our IN
creasing excess Of merchandise exports
over imports and sales Of securities TO
Europe, and as the funds represented
are not needed here they are being used
on the other side whenever opportunity
offers. reflection Of this situation being
found in the absence Of drawings In the
sterling exchange market against secu-
rites placed with foreign bankers.
Conditions in the financial district are
better than they have been at any time
in years, and il is for this reason and
the growing confidence In the mercantile
world over the outlook for expanding
business that the substantial banking IN
terests are not looking forward u dis
turbaDce OF an alarming character in the
event OF Supreme Court decisions in
the STANDARD Oil and American Tobacco
suits against the companies. Further
more, banking interests feel no apprehen-
sion over the possibility Of intervention
by this country in the Mexican insurrec-
ton. Indeed, the nancial interests would
welcome any movement that would
tend 10 preserve peace in our sister re-
public. The United states has large in
in, 'nC
wise is heavily interes ested in the develop
ment Of our neiehbor's industries. and II
would be a serious misfortune If any
thing should develop which might tend
to make abortive the efforts that have
been made 20 place Mexican affairs upon
a basis Of modern civilization.
Mexico has attained excellent credit
under thc rule Of President Diaz. one
indication OF which is found IN the re-
cent successful negotiations o. Finance
Minister Lmantou~ 70 convert na-
tional per cent loan into one 81 i per
cent on basis only a little under par
IN 1896. when the interior customs taxes
were abolished IN Mexico. the cOuntrvs
ordinary revenue aggregated S2J,V0o,Ho
american gold. while in the last year II
reached q total Of SJ3.H-r. 900, and in the
last nine years the value % exports from
the country increased from $710oOon
10 upward Of S130n0p" "D President
Tiaz and his associates have restored
public credit in the republic; they have
been responsible for q large gain in the
productive resources Of the country. for
the establishment Of the gc!d standard,
the reorganization OF tho nations bank
lng system and for a tremendous influx
Of foreign capital. IT therefore would
aypcar within the privilege Of the United
States 10 take unusual precautions for
the protection of It's vested rights in
Mexico even to the extent of interfer
ing in the present troubles If conditions
should rcach stage threatening The
stability Of money and business i'll the
republic
The mistaken policy Of the directors Of
the New York Central company in in
creasing the dividend on the stock to &
per cent year ago has been rec;ified by
a reduction TO q per cent basis. upon
which the issue always has sold better
on the Stock Exchange than on a q per
cent level. Al its present price New
York Central stock is an attractive in
ycetment purchase. and as there Is
large short interest IN Il q material ad
,ance doubtless viii develop in the event
Of o general rise in quotations, which,
however. at the moment does not ap-