New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-31
FINANCIAL MARKET
Moroccan Situation Encourages
Professional Selling of Stocks.


speculation. Financial relations be-
tween this country and Europe are so
intimate that any disturbance abroad
naturally is reflected in our own mar
kets, but II should be borne In mind that
at the present time our position in the
international trade and money market
is one Of exceptional strength and that
fundamental conditions in the United
States are sound and are not likely TO be
upset by the European quest Of Mo-
rocco. even II England and the CONT
mental powers should come TO blows.
The chances are that diplomacy rather
than war WILL settle the Moroccan
trouble, for the good reason that war
costs so much money Nevertheless.
until a satisfactory agreement has been
reached by England, France. Germany
and Spain in regard to who's who In
Morocco there doubtless will be ex-
treme nervousness In the worlds fnsn-
cial markets, irrespective Of other con-
ditions making for stability in money
and business.
IS q bear argument on stocks from a
speculative point OF view, Wall Street
operators have found In the growing
tendency of Congress to appoint com
mittees to investigate corporations and
its evident determination for political
reasons to show up the so-called money
trust sufficient reason for attacking the
stock market. And they also find In the
decision of the Interstate Commerce
Commission in the Spokane rate case
AGAINST the railroads further argument
for lower prices. Notwithstanding Wig
orous hammering OF stocks the PROBES
sional element has not made effective
Roadway In its campaign for cheaper
quotations. and It is not likely that there
will be any extended decline unless In
vesto;rs and the real financial interests
Of the country become alarmed. There
is nothing at the present time In either
the foreign or domestic situation that
warrar rs the sale Of American invest
ment securities. and owners or sucn Is
sues are not likely TO sacrifice their holo-
inqs az a time when conditions govern
ine intrinsic value are steadily growing
stronger. The local market Is In posi-
ton 10 absorb any amount or STOCK that
Europe wishes to send over. Much OF
the selling last week for so-called Tor
eien account was nothing more than
,,arinulation from this side for effect
unon prices II there should be war
in Europe European investors as
whole would not sell American securi-
ties on the contrary, they prooaolS
would sell home issues and relnVest III
our high grade offerings.
The ultimate effect OF the decision by
tba Interstate Commerce Commission in
tke Spokane rate case cannot be deter
mined at present. but in the TERRITORY
a ffecled shippers believe that eVentuallS
- will help both the railroads and the
bi,lers Of freight Traffic should move
more freely under the reduced schedules
and while the roads may lose tempo
rarily it is difficult to conceive or per
rnanent adverse effect upon the trans
portation industry. The Interstate COIL
roerce Commission has moved with eH-
trerne caution in the matter OF ordering
reductions in rates. Its decisions nave
been based on a thorough knowledge OF
the needs of the shippers and the car
riers. and in the Spokane case 1t has al
lowed wide latitude TO the railroads In
making an adjustment of their rates 10
conform to its sliding scale of long ana
short haul charges. In the end the rail-
roads will find that as far as the Inter
state Commerce Commission is con-
cerned there has been no prejudice
against them. Railroad earnings are In
creasing, and in the rest Of the year
marked Improvement over the results In
the same period in 1910 doubtless will be
recorded. And the same thing may be
said of all our Industries. The crops are
making favorable progress toward ma
tur,tv. and while record breaking results,
except in the case Of cotton. are not
! looked for the chances favor average
Yields Of grain at fair prices to the
farmers
among. the encouraging reports re-
CelNeQ III the last WeSh was tlSSN Va va
Tinted States Steel Corporation for the
quarter ended June 50, showing a de-
cided expansion in earnings and business
handled as compared with the preceding
three months and with the quarter ended
December 81, 1910. After all expendi-
lures and dividends and other deductions
there was a surplus of 81 $4,000, com
pared with S31, 100 IN the preceding quar-
fer The exhibit was better than shown
on the surface, as in the June quarter
the corporation charged off S6,26SWO
for depreciation and sinking funds, or
50. FOL 800 more than in the first three
months of the year. If charges for de-
probation. etc, IN the second quarter
had been on the basis Of these payments
in the first quarter there would have
been a surplus after dividends on June
20 of upward Of S4,600,0OO. Since the
close of the last quarter earnings have
shown marked improvement and II is
estimated that on the current percent
age of operations to capacity the net
earnings OF the present quarter VIII run
from S31 100000 to S83,OOO.OOO. United
States Steel common is selling only
about 8 points under its best price of the
wear. in spite of persistent attacks upon
it, Mr. Stanley and his loyal band OF
trust busters" have brought forth moth
ing that shows the public is being
mulcted by the United States Steel Cor
gTk. fsygt ton Of