New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-08
FINANCIAL MARKET
Investment Buying OF Bonds
Feature of Present Wall
Street Business.

warrants the sale OF well protected sPeC-
ulative accounts or investment holdings.
IRREGULAR price movements have marked
the course Of stock market business IN
recent weeks. but the character OF the
trading has brought no encouragement
10 the advocates Of lower quotations.
despite the. fact that occasional decllnes
have developed. Investors are not sell
ing, and public operators who hold STOCKS
on marginal account exhibit no interest
in the efforts OF professional traders 10
bring about an active selling movement
There is absolutely nothing In the gen
eral course " outside affairs that war
rants uneasiness on the part OF the own
ers Of American investment SECURITIES
while there appears 10 be lit'le III tie
speculative situation that suggests
position OH the short side Of the market
for long pull. Good stocks are III az
mand from investment sources, while
capital is moving into mortgage issues
that have long been on the market anu
into the new offerings OF railroad and In
dustrial corporations.
In the last ten days more than 80
100000 Of new securities have come upon
the market and have been successfully
financed. Furthermore. bankers now
have under consideration plans for the
financing OF new issues that will amount
in the aggregate TO more than S2ooooo'-
600. exclusive Of possible issue OF from
$50 OOO, 600 to S100OoOOO0 Of Panama
Canal bonds On ordinary income &C
count the federal Treasury shows from
May l an excess Of disbursements over
receipts Of more than Sl,2So,OOo' al
though for the fiscal year 70 date the
government has an excess OF receipts
over expenditures, exclusive Of Panama
Canal and public debt account. OF more
than S266. 600, compared with deficit at
this time a year ago og slc'ol'ot''
while on all accounts the detclt no"
stands at 500. 43s,623. compared with a
deficit Of S4S.373,791 at this period in
1910. OF the present deficit the larger
part IS represented by payments from
the general fund Of the Treasury Tor
Panama Canal construction account.
Under the authorization of Congress
the government has The privilege OF issu-
ing $3.50. $50 600 bonds for Panama Canal
purposes. and as the working cash bal
ance in the Treasury vaults now
amounts 20 less than S2J.OOoO0o. ii is
nor unlikely that Secretary MacVeagh
L. Dc bonds m
reimburse the Treasury for funds ad-
yanced for canal payments. The bond
market is in a receptive mood, and cur
rent conditions governing market move
nents would make government bond
issue highly successful. There are er-
ceilent opportunities for the investment
Of funds in the general bond market 81
the present time, advantage Of which is
being taken both by individuals and
financial institutions. Money continues
in abundant supply at all financial CEN
tres. Rates for accommodation are
much cheaper than reported at this
period IN 1910, but this fact does not
prove that loan quotations will not rule
at higher levels later in the season.
The federal Treasury reports the
amount Of money in circulation as Of
Nav at Sc. 237. G3S.i17. an increase Of
ST1724S2 as compared with the total on
April I. and gain of S133.O91S44 over
the amount outstanding year ago.
There Is an ample supply Of money IN the
country for investWent and business pur-
roses on much larger scale OF opera
lions than those now recorded by the
commercial agencies, and just a. soon as
the various uncertainties that are now
restricting new business are eliminated
from the situation there doubtless viii be
tremendous forward movement IN all
lines OF our industrial activities. The
basic foundation for business expansion
is a large supply Of money. reserves
NJ +he banks IN all parts OF the country
are unusually heavy for this period Of
the wear. and il IS we'll worth noting that
Saturdays statement OF the associated
national banks OF this city showed an
actual reserve above legal requirements
Of 81. e39. S2j. which compares with an
average reserve a year ago Of Slu.Il@.-
so and S7,G27+50 in the corresponding
time in 1903 Loans are far unoer de-
rosits. The general banking situation is
sound. and when the time comes for &C
tivity in trade merchants and manu-
facturers viii not be hampered by lack
Of monetary accommodation.
The iron and steel trade Is going
through period Of senni-depression, but
IN spite OF this and the Stanley resolution
in Congress 70 investigate the United
States Steel Corporation iron and steel
securities show q most obstinate refusal
70 respond to the attacks OF bear opera
tors. And the same thing may be said
Of American Sugar Refining stock. The
little men in Congress who are anxious
20 make an impression with their home
folks want to know why corporations
exist and what their sins Of omission and
commission are. out as Ear as Wall
Street is concerned their puny attempts
20 create trouble 60 almost unnoticed
r is In no spirit Of enlightened purposc
that Congressman are introducing reso-
lutions for the investigation of corpora
tons. New arrivals in Congress appear
70 he busy in preparing campaign ma
terial for the Democratic party In 1912.
J. : Bache & CO. in their market letter
last week said some things on this sub
ject that are worth printing. In any
other country than this" the firm said
Ill would be difficult TO understand the
action Of the Committee on Rules Of the
House OF Repre- sentatives in taking UP