New-York tribune., 1911-07-19
FINANCIAL MARKET
Light Trading for Public Account
on Local Stock Exchange.

Government figures showing weather
conditions throughout the agricultural
section Of the country in the last week
were without effect upon yesterdays
stock market beyond inducing a firmer
tendency In prices. According to the
governments report bountiful rains have
fallen throughout the grain and cotton
belts. while the Eastern offices Of West
ern and Southern railroads are In re-
ceipt Of advices indicating generally
favorable climatic conditions on the
farms and an outlook for much larger
Yield of farm products than suggested
by the federal crop report covering the
situation Of June l. In addition 70 the
improvement in cotton, grain and corn,
reports from the iron and steel industry
are most encouraging, the two factors
supplying adequate reason for the eX-
pectation Of general industrial eXpan-
sion in the rest of the year and an in
creasing movement Of money into In
vestment channels. The investment
market is more active than the specula-
tive market. and at the moment the
prospects for heavy buying Of stocks on
borrowed funds does not appear at all
promising, Notwithstanding the prevail
ing low rates for accommodation and the
fact that dividend paying issues practi-
cally carry themselves on marginal ac-
counts The public, however. does not
care to make speculative commitments
at present, and then the supply Of stocks
available for speculative purposes is ex-
tremely limited.
There was no important strength and
no significant weakness in the early
dealings in the general market yester-
day, except in the case OF Canadian Pa
cific. which advanced 10 new high rec
ord. and in the bond department in the
New York City issues. which declined on
the report that new municipal offering
was about 10 be announced. The city
may need additional funds, but a call
for subscriptions TO corporate stock at
this time would. in view of the fact that
the financing Of the last issue has only
recently been completed. be pressing the
market rather closely. The general
market exhibited a little activity in the
last hour and decided strength in prices,
which showed substantial net advances,
Reading, Amalgamatcd Copper. Cana
dian Pacific, Manhattan Elevated Amer
ican Car and Foundry. American Cotton
Oil. Union Pacific, the Interborough-
METROPOLITAN issues, Great Northern, the
Frisco shares. Northern Pacific and
United States steel enjoying the chief
Improvement. The prospect Of settle
rnent of the subway extension tanGle
was an important factor in attracting
covering Of shorts; also the decline IN
cotton.
Credit conditions throughout the coun-
trv are excellent, and local bankers he
lieve that the autumn demand for funds
incident TO the marketing Of the crops
will not be attended by any disturbance
in the money market. Higher rates for
loans are looked for, but the present
course Of loan quotations for distant
neriods does not suggest the probability
Of the extreme levels that so often in
the past have prevailed in the fall. The
chief demand for money just now is for
six months dates, for which the rate is
on n 32L per cent basis, against per
cent at this time last year. when there
was a certain amount Of apprehension
among the banks that stringency might
develop in October and November, while
IN the commercial paper department Of
the market the current rates Of 3$4a4h
per cent, according TO the maturity for
the highest grade bills, compared with
51k06 per cent for prime bills in July.
1910. when bank reserves in this city
were about the same AS those now re-
ported
The inquiry for accommodation IS eX-
tremey light, and it is not unlikely that
pending the financing Of the crops the
Clearing House Institutions at this cen
ire will be able to strengthen their cash
and reserve holdings, while owing 10 this
country's strong position IN the interna-
tional trade market any drain on bank
resources here in the autumn doubtless
will result in imports Of gold from Eu-
rope our bankers are not borrowing
abroad, and they are not drawing to any
extent upon credits created in Europe
through the sale OF Amtrlcan securities
and the enormous excess of exports or
merchandise over imports. The foreign
exchange market shows a notable alb
sence Of finance bills, representing bor-
rowing on short term loans abroad, while
the supply of commercial bills repre-