New-York tribune., 1911-01-09
FINANCIAL MARKETS
Stocks and Bonds Advance in
First Week of the Year.

DIV dDITtNldblOH III AlNto, OuN tHN cN
yancing movement failed 10 encourage
outside operations on borrowed money.
although in the bond department bet
ter investment demand was reported.
while there also was an inquiry from
operators who expected to sell out at
profit before the close of the month. AS
money doubtless will accumulate at this
centre In the course Of the next elght
weeks II appears quite safe to predict an
expanding market for mortgage issues
III that period. but at the moment inc
Street has few well defined IDEAS re-
garding the probable course OF STOCK
quotations In the near future oWlns'
perhaps. to the current lack of interest
in the trading by the public and 10 the
uncertainty over the outcome OF the cor
pcration cases pending in the supreme
Court and the forthcoming decision OF
the Interstate Commerce Commission on
the application of the railroads Tor hlgher
rate schedules. Technical conditions in
the stock market at the moment seem
10 favor the bull element, and in opu-
mistic bull circles the theory Is advanced
that the larger interests are committed
to the long side, with the intention OF
lifting prices by degrees until the pub
lie can be induced to become buyers. A
gradual advancing market seldom falls
to attract the outsiders.
Money rates were strong in the carry
part of the last week, easing off toWaru
the close. Currency is now moving 10
this centre from the interior, ana the
banks are gaining on their operations
with the federal government, owing 70
heavy payments by the Treasury on or
binary account and to d contraction III
receipts from customs and Internal reVe-
nue.. Since January l receipts amount
to S4.34S,G37 against S4S549IO In the
same time last year, while in the same
neriod expenditures have been S6,3I9,9U,
COMPARED with S5,S64 ,553 in 1910, the eX-
cess of ordinary expenditures over ordl-
nary receipts amounting to S2,o3l'ooS'
against an excess in the corresponding
time last year of 1,009, ,0S3. The Treas
Is
fees and in national banks is not large
enough 10 stand a long strain Of in
creasing expenditures, and while there Is
no reason to suppose that the first half
Of the present year will witness an i'm
portant excess of payments over re-
ceipts on ordinary account, II any, Pan
anna Canal expenditures will continue 10
bore into the governments general fund
unless an issue Of Panama bonds is
made. In all probability such an issue
will come upon the market in the course
Of the next few months, while in the
event of continued ease in money with
large accumulations Of idle funds the
market will he called upon to do con-
siderable amount of corporation tinanc-
ing.
There will mature i'm 1911 upward OF
S179 100000 bonds and notes Of various
corporations. for which new financing
will be undertaken, and as the larger
number of these securities will fall due
in the next six months offerings of new
securities may be looked for in the near
| future. With the railroad rate ques-
/ tion out of the way, financing in con
, nection with improvements ana new
construction viii be taken under consid-
GRAFTON by our large banking houses,
even if the transportation companies are
refused permission to increase their
freight charges. In case Of the latter.
however. plans for new capital eXpendi-
lures doubtless will be smaller than in
the event Of a decision favorable to the
companies, although absolutely neces-
sary new outlayS by the railroads Will
aggregate an important total Railroad
net earnings have been making an un-
favorable showing for months in spite
Of substantial improvement in gross re-
turns. but dividends have been earned,
and from present indications there Will
not be many reductions in the present
wear unless trade depression should be-
come acute, Of which there is no sign
AT the moment. Conservatism Is being
practised in all lines, and if increasing
supplies OF money do not lead 20 over
extension of credit and a resumption of
the dangerous Western land speculation
that was reported in the first half Of
1910 there should be no disturbance in the
financial markets. The commercial
agencies state that merchants are en-
terlng the new year with confidence.
judge Gary, chairman of the United
States Steel Corporation, is d conserva-
I H.. for rafNr
business in the current year. He says
that lie has as much reason for feeling
that business will be good in 1911 AS
those who are talking bad business at
this time have for saying that it will be
bad. And this idea is common among
men who are able to look ahead and
realize that the country has been going
through a period of readjustment and
retrenchment and that as Il consequence
Industrial conditions are approaching q
safer basis, with all prospects 1aVCllnE
q reminding process. barring the deVel-
OUment OF some national calamity, as
FOR instance, crOp failures in 1911. The
latter. however, is practically impossi-
BILE This is not one crop country,
and with the immense increase in our
agricultural areas in recent years the
tiroe mas passed when widespread crop
calamities are possible. The enormous
addition TO the COuntTy's wealth from
the products of the ground in the last
year supplies our industries with SUBJ
stantial backing for the next twelve
months In Wall Street there are still
many confirmed bears who can think of
nothing but the past, but as rule trad
ers are more cheerful, while the banking
interests exhibit no apprehension over
the future. From all indications there
VIII be some profitable banking opera