New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-02-06

market had all the earmarks Of a genu-
inc bull affair. This fact. however
should not be taken as a guarantee that
the course of prices from now on is to
be in the direction of an uninterrupted
advance What the market did last
week is no criterion for what 1t may dc
in the future II appears safe. however
to predict support from the prominent
banking interests for a long time "a
come. even though they may not encour-
age aggressive operations for the rise
Bull markets require large amount OF
money. and while bank resources are
heavy and rates for accommodation are
low it should be borne in mind that the
prominent banking interests have in
mind the financing of corporation re-
quirements that will involve a large
amount OF ready funds. Bankers do not
desire 70 tie up their capital in specula-
tive operations at time when they pro-
pose to finance new securities. IT is
worth noting that the output Of new Sc
curities in January was heavier than In
any corresponding month on record.
Announcement by the management OF
the Union Pacific that S15,OOOOo0 will
DO spent on double tracking in the next
five years. and that a large sum Will be
expended in the next six years upon i'm
provements and extensions. together
with the statement by Judge Gary that
IL,
January showed marked increase as
compared with the monthly totals in the
last two quarters Of 1910 have served the
useful purpose OF strengthening conf
donce in business circles in the theory
that the maximum Of industrial depres-
sion was reached in the closing month
Of the old year. Furthermore, these fac
tors have created a belief that eXpaD-
sion in the country's general industries
is "A matter of short time only. I'M
provement in the nations industries al
ways follows Improvement in the finan-
cisl markets. The best feature of the
financial markets Is the steady invest
ment demand for bonds, which is clear
ing up the big surplus holdings Of the
bond houses and underwriting syndi-
Gates. and which is paving the way for
the issuance of additional railway mort
gage investments, the proceeds Of which
will be used TO meet the growing needs
of our great and little transportation
companies. And the satisfaction Of sucn
needs means increased business for the
iron and steel companies, for the equip
ment companies and for many other
concerns. to say nothing Of increased en-
plovment of labor. The report OF the
United States Steel Corporation, show
ing poor earnings in the last quarter OF
1910. represents past conditions, and 1t
is not a factor in the stock market, nor
does Il excite any interest in business
circles where the future is the only thing
under consideration.
Money rates are slightly tirmer than
reported a week ago. although bank re-
serves show small increase in the face
of further expansion in loans. The re-
turn flow of currency from the interior is
unusually heavy for this period, as in the
last week in January and the first week
in February receipts are expected to
show a falling off from the totals of the
first three weeks of the year, the con-
tinusnce OF the inward movement Of
funds representing In large part ship
ments 10 this centre for employment in
the speculative and investment markets.
Current federal Treasury disbursements
at this point are larger than the pay
ments by the banks to the government,
the excess representing TO a great extent
payments on account of national bank
note redemptions. Redemption of ma
tional bank notes in January was heavier
than in any preceding month in the his
tory Of the national banking system,
amounting 10 almost S650O0,000, of
which more than One-half was supplied
by the New York institutions. Bankers
show no disposition 10 make long time
loans on the basis OF borrowers ideas Of
rates. and in some quarters Of the tinan-
cial community It is believed that In spite
of the large accumulation Of funds I'm
New York coming demands upon the
banks will be large enough 10 establish
rates for all periods upon a higher level.
The difference in money rates between
London and New York supplies the best
explanation for the present strength In
the sterling exchange market The fact
that money is cheaper here than at the
British capital has encouraged the trans
fer of accounts from London 10 New
York, and the unusual fact Of a lower
money market at this centre is being
taken advantage of 10 the fullest extent
by international banking interests. with
the direct effect of strengthening condi-
tions in sterling here. Moreover, the
supply Of commercial bills shows a ma
teriai reduction, which, of course. is an
other factor in maintaining foreign ex-
change rates at stiff level. Whether or
not the present situation will continue
depends upon the course OF local and
London money rates and the extent of
European participation in our securities
markets Europe shows disposition to
come into this market. and with the
passing OF the uncertainties in connec-
ton with the railroad rate question and
the decision of the Supreme Court in Ger
TO-, k.f