New-York tribune., 1911-10-21

Stocks Active and Higher at the
Close of Foreign Exchange.

After q strong opening the stock mar
ket became irregular and by noon re-
lapsed into dulness. but in the last hour
the trading became very active, prices
advancing on large buying by the bulls
and heavy covering of shorts. Pront
taking in the last few minutes caused a
slight recession, but final prices were
virtually the highest of the session and
represented net gains in almost all of
the issues. Steel common was the
leader in activity. the sales of II being
nearly one-half of the total transac-
tions. and Reading and Union Pacihc
also were heavily dealt in. the large VOL
ume of transactions in these three Is
sues suggesting a renewal of operations
BIZ the market group VINO were acIiNe
on the bull side a few months ago
Steel common was bought both on the
supposed benefit to be gained by the
Steel Corporation through termination
of the Great Northern ore lease and on
the belief that the ending of the lease
would remove the menace Of a govern
ment suit for dissolution of the greatest
OF industrials. American Beet sugar
common was strong. on the probability
OF the declaration of an initial dividend
and when the announcement was MADE
that the stock had been placed upon
3 per cent basis the price continued to
advance. 10 the discontinue Of many
bears. who had promptly gone short of
it following the rule OF selling when
the good news is out Amalgamated
Copper was conspicuously strong, gain
ing 1St points on the day, despite the far
from favorable outlook in the copper in
dustry.
According 10 the known movements OF
money in the week the local banks have
lost about 81 100000 in cash, although
there has been a net gain of S1,SOO0OO
from the interior. The foreign exchange
market was strong yesterday, the de-
rnand sterling rate advancing 10 points,
and engagements for gold exports would
have been effected IL the Bank of France
had been willing to grant advances
against shipments. The further rise in
the foreign exchange rate represented
the continuance of the extensive placing
Of American funds with European bor-
rowers. the buying Of bills for these op-
erations being so large as more than TO
offset the heavy offerings of bills drawn
against exports Of cotton and other mer-
chandise. II is estimated that within
the last few days loans have been placed
abroad by several of the important In
ternational houses at terms to yield from
AZ TO per cent. It also Is estimated
that advances to foreign borrowers FOR
the account of New York and interior
financial interests exceed S1OO,OOOGO,
the movement rejecting the inactivity Of
the money market here and the willing
ness Of our banks TO seek an outlet
abroad for some of their idle funds.
While we are using our surplus money
in the foreign markets, our export trade
continues TO show a large Increase over
corresponding periods in preceding years
with the result of creation of heavy
credit balances in Europe. In the month
Of September exports Of merchandise eX-
ceeded imports by S70,613, 1874, compared
NltU an GAttSS VI th hpOl 10 III liIC S''iAAr
month last year of sol 900, 130 and $32.-
9lS.26j in 1909. and for the nine months
ended September 80 the excess Of eX-
ports amounted in value to $3224120OJ,
against $50 564 $40 in the corresponding
period last year and So, 430,5A the year
before. For the twelve months ended
September so the excess Of merchandise
shipments over imports reached a total
value Of Sj74 S62, 400, a gain Of $364,-
OjO693 as compared with the preceding
twelvemonth period. Exports in Sep
tember We're heavier in value than in
any September in the history of the
country, and with the exception of jan
uary. 1908, they made a better showing
than in any earlier month recorded by
the Bureau Of Statistics. In view of our
strength in international trade and our
large bank balances it is not surprising
we are taking advantage Of the at
tractive loan quotations abroad to lend
our credits there Both London and
Paris exchange rates here are close to
the gold exporting level, and it is quite
probable a further outlet for our idle
funds will be found through shipments
of the yellow metal TO Europe.