The Washington herald., 1911-01-13

New York, Jan. 1.-THE general COM
ment in Wall street to-day ran to the
effect that the stock market acted as IL
it was strongly inclined to advance, but
was held in check by yesterdays an
nouncement by the Pennsylvania Railroad
directors of their intention to apply to
their stockholders to authorize an issue
Of 500. 100000 new stock. This caused
heaviness during the day in the Penn
syfvania shares, Just as it did yesterday.
and obviously placed something of
damper upon the general stock market
At the same time common-senSe people
were asking just why the announcement
should be considered unfavorable. even
in speculative sense. 1t is very well
known that the Pennsylvania Railroad
Company must do some new financing
during the present year in order to pro-
vide payment upon the maturing Of ex-'
listing Indebtedness, to arrange for certain
desirable new construction, and in all
probability to raise money for the pur-
chase of larger control over certain
other railway systems in which the Penn
syivania is already much interested.
News Should Be Cheering.
From conservative point of view the
news would seem to be of cheering sort
that the management of the premier rail-
way organization of the country was so
hopeful of the future. despite current
pessimism and general attitude of busi-
ness hesitation until the pending Supreme
Court decisions are handed down, that it
had decided to begin at once upon such
work OF additional construction as that
referred to; nor can it be seen how such
determination bears at all adversely upon
the prospects of the iron and steel COM
panies.
Moreover, the issue of stock contem-
plated by the company is not great and
payment for it is spread over practi-
cally the whole year This more sane
way of looking at the matter came to
prevail finally, and in spite of selling of
Pennsylvania stock by speculators, most
of 1t unquestionably for the short ac-
count. the general market advanced.
A strong reason for increased optim-
ism was, of course, found in the govern
ment's statement published this morn
ing of the exports of domestic pro-
ducts, that is to say, chiefly of agricul-
tural commodities, for the last month
of last year. The value Of these ex-
ports rose to s133, 10000 as against $751;
100000 in 1909 and s1OlOOO,OCO in the year
preceding. This s45,0O0.0OO increase was
almost wholly made up of enlarged ex-
ports of cotton but the fact none the
less bears witness to the immense nat
ural advantages enjoyed by the country
in its procession of a practical monop-
oily Of the worlds cotton product.
South Is Prosperous.
1t is likely that no very long time will
elapse before, by reason of the wealth
that has come to the South on ac-
count of its exceptional prosperity in the
last eighteen months, certain announce
ments will be made as to large plans Of
new railway business and construction |
in the Southern States.
AS bearing further upon the current |
state of the foreign trade, there is every |
indication, inasmuch as shipments of
merchandise proper during December are
supposed to have largely increased, that
the fun statement of the country's ex-
ports to be made public a week or ten
days hence will make an altogether bril- |
liant showing
The indications gather for large pop
ular and banking bidding for the New
York City s40.000,OOO "A per cent bond is
sue, to be put out a fortnight hence.
There is admittedly every banking rea-
son why this issue should be success,
but inquiries regarding it are coming into
the large banks in such lively way, es-
pecially from Europe. as to point to a
heavy oversubscription for the issue.
Straight Fffty-year Bond.
In estimating the success of the bond
sale sufficient credit has not perhaps been
given to the fact that the new bonds will
be a straightout fifty-year bond and
cannot be called after twenty years of
life, as the existing ~ per cent city stock
can be for which the current bid is 100 81
Substantially the same bid was indeed
made for the new bonds when issued
in the curb market to-day.
Finally, the Bank Of England made a |
af re for
the week, showing such a large increase |
in cash and phenomenally heavy decrease |
in loans that the proportion of the banks |
reserve to liabilities rose to 47.SO per cent, |
as against $40 per cent last week. The |
banks present ratio OF reserve stands |
at higher figure than any seen at this |
date in the last twelve years. with the one
oycenfion of A,1I1 x,oar Of 1onP