The Washington times., 1911-01-22
WALL STREET CONDITIONS BETTER
BUT MOVEMENT IS PROFESSIONAL
Public neres-Eaier Money Helps SecuesIndusta
Betermen-Nw Security Issues Likely Well Recehd-R
Effective InAuens-Elminaion of
JOHN GRANT DATER,
Special Financial

Financial Representative the Munsey
many quarters that a large oversub-
scription now, IL that should be the out
come, might have a similar effect.
City Bond Transactions.
The transactions on the Exchange in
the certificates of the new AZ per cent
city bonds, when issued" between 1907
and 10l. determine nothing of the out
come Of Tuesdays sale. for It may be
recalled that the previous $50, 900, 900 is
sue Of AZ per cents, which afterward
sold at par, changed hands "when is
sued" on the curb at lO2h The impend-
ing issue. however, is a more attractive
bond, as 1t runs for a straight nifty
years, while the preceding issue is re-
tirable at the option Of the city after
1880. The admission of the when is
sued" certificates for the new issue to
the trading list has attracted much at
tention. for 1t is the first time In the
history of the Exchange, according to
bond men, that a contract OF this pre-
else nature has been recognized on the
Exchange.
Stocks and bonds when issued" have.
of course, been admitted to trading on
many occasions, including New York
city issues, but only upon some receipt
or evidence Of sale or allotment, pend
Ing the delivery of a definitive bond
The same is true of corporation stocks
and bonds. the buyer and seller having
some evidence of ownership from the
corporation, which is not, in this in
stance. the case. Curb brokers, who
have heretofore enjoyed the privilege
Gus over being deprived of a chance of
making little money. Some persons
believe that the exchange made the de-
parture on this occasion to secure ~
commission in advance sales for it's
members. while others believe that 1t
was to prevent possible bearing Of
the bonds by outside brokers. That the
issue will not fail of full subscription is
the opinion now held everywhere.
Improving International Trade.
Contrasted with the preceding interval
the developments of the week in Wall
Street were generally lacking of novelty
and importance, with the exception OF
the Government statement on merchan-
disc exports and imports for December.
The showing as to international trade
was highly satisfactory, exports in
creasing $546T.335, and imports decreas-
ing s., 299. making an excess of mer-
chandise exports over imports for the
month Of S56,S0S,SO Combining mer-
Chandise and agricultural shipments,
the total excess Of all exports over i'm
ports for the month amounts to S90O,54l,-
S04, compared with the preceding year.
With the publication of the trade
statement for December one is liable to
compute the total merchandise balance
for the calendar year 1910. This shows
a credit balance in favor of the country
of 1901, ,6OS.64S. which Is As.0OO.0Oo larger
AI
interval in 1909. This is vastly better
than seemed possible earlier in the year.
for in the months up to August the
country showed an actual debit balance
on its foreign trade. This was only
about 100000, but It was the first
since 1895, and II gave bankers much
concern. Though better than expected.
a balance in our favor OF $301. 100000 Is
not large when compared with other
years since 1895, but the best feature is
the disclosure that the present tendency
of international trade Is in the right di-
rection.
Banking Reform Approved.
The week brought forth Senator Aid
rich's plan for reforming the banking
and monetary system. Speculative Wall
Street, as was to be expected, paid ht-
tie attention to the proposed measure,
but in influential banking circles It at
tracted much interest and came in for
a great deal of discussion. I am thor
oughly familiar with the agitation of
and currency reform in the
country from the days of the silver pur-
chasing act of 1890. and can say from
actual knowledge and discussions with
bankers, of many shades of opinion,
that no measure proposed in twenty
years has been as favorably received by
bank officials and private bankers Of
the first prominence as Senator Aid
rich's measure. 1t will play an impor-
tant part in banking discussions from
now on.
The refunding act of 1900, hailed as the
cure-all for our financial ills by the ma
tional banks, which received all the
benefit of the imitation measure, was
fiancfers elsewhere, who, at once point
ed out the objectional features-the per-
petuation of bond secured currency,
based on a less desirable security than
before. the consolidated per cent bond
which established the credit of the
on false interest basis. has
muddled the national finances.
Space does not permit full discussion
Of Senator Aldrich's plan, but 1t is high
ly approved by men whose opinions
AOA AAi SitS iiioAiS-RA NAo-
trict. 1t is well calculated to perform
the work of a central bank, which IS
necessary foc the country, without Gre
ating such an institution, and the
scheme, as devised. makes political or
Wall Street dominance of the Reserve
of America" impossible.
Quiet Trade Continues.
So far as trade conditions are con-
cerned, there has been no decided
change in any of the great industries,
though the trade authorities speak of
an improving sentiment in some quar-
ters, and notably in iron and steel, |
which, having receded to rock-bottom,
seems destined to move up, If it moves |
It all. Industry in general Is still pro-
.eeding along the conservative lines so |
referred to in this column, |
nd this finds its reflection in diminished |
bank clearances throughout the coun- |
.ry, those of the week amounting to
{, ,964, 653, 491, a decrease of 1876 per cent |
when compared with the same interval |
ast year.
Of the great industries of the country
extile manufacturing and copper pro-
luction appear at present to be the
chief sufferers, the former feeling the
adverse influence Of high priced cotton