New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-24
FINANCIAL MARKET
General News Developments and
the Position of Money Favor
Higher Stock Prices.

uniformly ravora BILE, and there was moth
ing in the daily news developments that
warranted uneasness on the part Of
stock market bulls, although traders
who would like TO get out OF bear con-
tracts and sold-out bulls who would like
to accumulate securities at lower levels
asserted that political Investigations Of
corporations and possibilities Of tariff
changes supplied adequate reason for
operations for cheaper figures While
the local traction situation supplied the
market with arguments for active specu-
lation in the shares OF the PETERBOROUGH
Metropolitan Company and the Brooklyn
Rapid Transit Company. the tendency at
the close Of the week was to break away
from the city's street railway issues and
buy the stocks Of the standard steam
railroad and industrial corporations, ee-
pecislly good purchases being reported
in United States Steel, on a small scale
Laclede Gas and on a relatively large
scale Union Pacific. Reading, ST. Paul,
Northern Pacific, Canadian Pacific and
Great Northern. The prospects Of aver
age crops In the Northwest and the be-
lief that the railroads In that part Of the
country will be materially benefited by
reciprocity between this country and
Canada have encouraged much more
bulish attitude on the part Of Wall
Street toward the Northwestern railroad
shares. and II is not unlikely that in any
bull market that may develop in Au-
gust these issues will be prominent feat
ures
1t Is quite evident that al enormous
cotton crop will be harvested in the cur
rent year, while the wheat crop promises
TO be in excess OF that gathered in 1910,
with a somewhat smaller corn yield than
the record breaking one reported last
fall Good crops mean an increase In
the country's purchasing power, extern
sion In the iron and steel trade. expan-
sion in railroad earnings and greater
activity in the financial markets. Credit
conditions throughout the country are
excellent. and local bankers believe that
the autumn demand for funds incident to
crops will not be attended by any dis
turbance In the money market. Higher
rates for loans are looked for and will
be heartily welcomed IN the banking
community, but the present course Of
quotations for distant periods does not
suggest the probability OF the extreme
levels that so often in the past have pre-
vailed in the fall OF the year At the
moment the chief inquiry for accommo-
dalton is for six months dates for which
the rate is on a 81 per cent basis,
with a somewhat better price for longer
maturities. Bankers are showing greater
reluctance TO force their funds on the
market, either on collateral loans or
mercantile paper, on the well founded
theory that it Will not be a matter Of
long time when quotations will seek
higher plane.
Just now the inquiry for accommods-
ton is light, and the banks are expected
&c strengthen their position before an
active demand develops through receipts
Of currency from the interior, and, II
necessary, through imports Of gold from
Europe. This country's position in the
international trade market is one or eX-
treme strength. Our bankers are not
borrowing to any extent abroad. and
they are not drawing to any degree upon
credits created in Europe by the sale OF
American securities and by our enor-
i'm
ports The foreign exchange market
shows a notable absence OF finance bills,
representing borrowing on short term
loans In foreign capitals, while the sup
ply of commercial bills representing ex-
ports OF grain and cotton soon will be-
come an important factor in strengthen
| ing to a greater degree the certainty OF
large imports Of the yellow metal in the
| autumn. The Southern banks already
report a better demand for money incl
dent 70 cotton crop requirements. The
general movement Of currency, however
| is still in favor Of this centre, the return
Of July disbursements being an i'm
portant factor in increasing local bank
cash holdings.
| Speculation IN stocks IL still inactive.
while investment operations In bonds
have fallen off substantially from the
large totals reported earlier in the sum
mer. A market Of this sort however, is
usual at this time Of the year, and the
duIness cannot be considered a criterion
Of what will happen IN the current
month. August markets are generally
hill affairs. From the bull point Of view
the July market has not been discourag-
| ing. as prices are now at or near the best
Of the year, but It has been dismal dis
appointment for the larger number Of
commission houses. The public has
taken little interest in speculation. and
there is not enough business 10 GO
around. The smaller commission houses
are not making their salt. but the larger
firms report q growing demand from
substantial operators for the prominent
railroad shares and such industrials as
gas issues. United States Steel, Amalga-
mated Copper and American Smelling
and Refining.
The American Smelling and Refining
Company has just issued its annual re-
port, showing balance for its common
stock for the year ended April 80, 1911,
~ approximately S6,67O,OOO, or So per
cent, as compared with S3,546,27S, or
100 per cent, for the 1910 fiscal year.
The surplus for the year Of $4,000
compares with the previous years sur