The Birmingham age-herald., 1911-01-16
.F|NANC|ERS SHOW
 MORE CONFIDENCE Transactions, However, Are
 Very Conservative BONDS ARE INACTIVE DcyeIOpments Are Awaited in Issues Of Certain stocks and Bonds Which
 VIII Carry Weight With

New York, January 15-Announce- ment of new capital issues last week served to open up the problem of avail able supplies of investment capital and the success to be expected in meeting requirements. The turn of the year and the reflux of funds to reserve cen- ters was all that was awaited to enter upon this necessary process. The New York city s6O,oO0 900 bonds to be Is sued before the end of the month proved larger than had been expected. The decision to make the denomination AZ per cent instead of the expected 41b per cent was interpreted as a re- flection of increased confidence on the part of capital and willingness to accept a lesser investment return than last fall when tho New York city bond issue was first discussed and when the AZ per cent rate was considered neces- sary to secure q Notation at par. It was assumed that assurances had been obtained from banking houses or suf- ficient importance to make the sale a success before the details had been de- termined upon.
 On the OIneT nallQ lllt HCdFy bOiiS developed in the older New York bond issues was evidence of some strain in the bond market, growing out of the issue. The reception accorded the an- nouncement of the new Pennsylvania stock issue also had a modifying ef- feet on the hopeful feeling over the investment demand in prospects. The -I, iraA in fnllnW1np moderate offering as that immediate contemplated in the Pennsylvania plan and on terms profitable to stockhold- CTS, showed the sensitive state of mind of the capital market. Improvement in this direction is considered to be a necessary preliminary of effective remedial process in other directions.
 The closing of the Carnegie Trust company and the inevitable rumors to which it gave rise complicated the situ- ation slightly in spite of the
 conviction that weak point In the fi- nancial situation had been eliminated with advantage The incident served to point one more parallel with the sequence of events following the de- pression of 1893 which has marked the financial history since the crisis of 1907. The end of 1906 saw number of minor bank failures ana, al dllHosi the same time the definite termination of the persistent reactionary tendencies which had interrupted all recoveries for two years preceding.
 Extraordinary cotton exports in De- cember carried the value of the agri- cultural outgo far above the proceeding December In spite of moderate declines in value of other items. The November precedent warrants an assumption of further export expansion in the depart ment of manufactured products and an other substantial addition to credit bal ances abroad in aid of the further re- cuperation of money market resources. The determination of steel trade au- thorities to maintain present price schedules was as expected. Its influ- ence sentiment is affected by the avow- al that a lowering of prices would have little effect in stimulating present dull demands. The iessened rate of con- traction of unified orders during De- cember reported by the United States Steel corporation brings into the reck- oning thS decreas ased activity at the mills on old orders as well IS the re- ceipt of new orders for the period.