New-York tribune., 1911-09-20
FINANCIAL MARKET
Money Developments Abroad
Reflected in Higher Foreign
EXCHANGE Rates Here.

The labor and political situation at
home and abroad. higher foreign dis
and talk Of further government
prosecution Of corporations encouraged
renewed bear pressure in yesterdays
stock market without bringing out
heavy offerings The metal shares were
weak, and traders felt quite
the United States Steel Cor
soon would receive the serious
attention Of the Department Of Justice,
despite the recent report Of the Bureau
Of Corporations that the concern was
not a monopoly, while they also were
quite certain that both the steel and
copper trades were on the way to bank
ruptcy. Steel common lost more than .
points: also Amalgamated Copper. The
metal industry is by no means active,
while most lines Of trace are relatively
quiet, but there is no important funda
mental weakness in the position Of bust-
ness. Notwithstanding the pessimism In
Wall Street and the unwillingness Of
consumers to operate beyond q day-to-
day basis Outside Of Wall Street the
atmosphere is not so thick, but, Of
course the constant sagging Of Stock
Exchange prices tends to create the i'm
preston in business circles that the time
is not ripe for making large forward
commitments.
The general market was without ac-
tive support, and in the last hour new
low records for the year were made by
many issues, including Steel common
and Amalgamated copper, in which some
Of the selling looked like real liquida-
ton doubtless for the account of tired
out holders and operators whose mar
gins had become exhausted. Buying on
n scale down was reported by the larger
houses for substantial interests, but no
attempt was made to advance prices,
which closed weak throughout the list,
the Hartman shares, Reading and the
metal stocks leading in the downward
movement. Union Pacific closed at a
figure that represented an investment
return Of a little more than 6 per cent.
United States steel common yields about
~ pcr cent at its current quotation,
and I'm spite Of the smaller earnings OF
the corporation the most confirmed
bears do not suggest a dividend reduc-
tion. The United States Steel Corpora
ton is operating on about 70 per cent
Of its ingot capacity, but new orders at
present are not as heavy as they were
In August, while the margin OF profit
has been cut down by the decline In
prices Of finished steel materials. New
ertheless the concern is earning at a
rate I'm excess Of common stock divi-
dends
An advance in the discount rate of the
Imperial Bank Of Germany at this pc
rlod Of the year is not an unusual de
veloprnent, and the action Of the institu-
ton yesterday I'm raising its quotation
from 4 70 per cent caused no surprise
I'm local financial circles, especially as
recent Withdrawals Of gold from Berlin
by Paris and London had weakened the
position OF the German banks and car
ried open market discounts above the
Rcichsbank's figure. Developments Incl
dent TO the Moroccan situation have
been a factor in strengthening foreign
discounts. and they also have affected
the foreign exchange market at this
centre. although it is said that the
money recently lent by New York 20
Berlin represents wholly business op-
Grafton with no bearing upon any prop
osition TO settle the Moroccan question.
The report that our most prominent
banking house had agreed to finance
Berlin if Germany would make a salts
factory reply to France before q o'clock
last night was characterized by the firm
in question as absurd.
a large amount Of German treasury
notes fall due next Monday; likewise a
large amount Of commercial paper. but
in spite Of the unfavorable conditions
prevailing in Berlin il Is believed the
obligations viii be met without the de-
yelopment Of serious trouble. Our owr
money market is extremely dun, and
the domestic demand for accommodation
is light in all departments, with no in
dicaticn of activity in the Immediate
future although the South is beginning
10 call upon this centre for funds incl
dent 10 cotton crop movement purposes.
The advance yesterday in the open mar
ket discount rate IN London 10 three
nUATteYE Of par cent abOEe The Bank