New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-27

FINANCIAL MARKET
Bear Traders Drive United States
Steel Shares to Lower Level.

Stock market trading was light in vol
ume in the FIVE hours Of business, trans
actions. as q rule representing the OPP
erations Of an unimportant professional
element. In the larger number Of issues
prices closed under the final figures Of
the day before. the chief losses being re-
corded by American Cotton Oil and
United states steel common, the latter
being attacked by the bear element on
the argument Of unfavorable conditions
in the steel trade and on the fool theory
that the directors of the United States
Steel Corporation and interests identified
with the big steel concern were selling
their steel shares because Of the cancel
lation Of the Company's lease Of its con-
tract with the Great Northern ore Com
pany. The stock also was sold on re-
ports that the government would bring
suit against the corporation as con-
Germ operating I'm violation of the Sher-
man antitrust law. Most of the selling
Of United States Steel stock came from
speculative quarters. Insiders are buy
ing the issues OF the United states Steel
Corpora ton on all declines because they
are convinced the steel trade is not going
10 pieces and that possible changes in
the organization of the corporation to
meet government requirements under
tho sherman antitrust law will not re-
suit in a decrease in its earning power.
The iron and steel trade is somewhat
demoralized at present, but the fact re-
mains that the world at large must con-
tinue TO use iron and steel and that this
country is the chief source of supply for
/ iron and steel products. The steel mar
ket is going through one Of its periodi-
ca, periods of depression. Based on past
performances and on the worlds needs
! for iron and steel there is no reason for
pessimism over the future Of the iron
and steel industry. Investment issues Of
the steel companies are cheap at pres
ent prices. Most Of the railroad shares
maintained a notable degree Of firmness
throughout the day. the announcement
of an increase in the dividend on Nor
folk & Western helping this department
of the list. II appears rather absurd to
talk OF business calamity when a prom
inent railroad company finds its current
earnings and its outlook for new bust
ness good enough TO advance its dividend
| from 10 q per cent. The general mar
ket closed quiet and irregular.
/ Improvement is reported in the Euro
/ pean financial markets, and sentiment is
more optimistic as a consequence Of the
evident passing of the Moroccan trouble.
! Weekly returns of the Bank of England,
the Bank Of France and the imperial
Bank Of Germany make favorable eX-
| hibits, and il is not unlikely discount
rates will be lowered with the final clear
! ing up of the political situation arising
/ from the question Of who's who in Mo-
rocco. At this time last year the Bank
| OF England showed a proportion of re-
serve TO liability of 46.11 per cent, while
Yesterdays return gave percentage Of
| - 50. compared with a ten-year average
for this period of 4j22. In spite Of this
strong statement and the more normal
conditions in Paris and Berlin, talk is
/ still heard of gold exports from the
! United States and the fact that our eX-
change market continues TO creep toward
higher level at a time when money
rates here are under those prevailing
| e broad naturally suggests the possibility
of an outward flow Of the metal. spe-
cial reason for the strength of Berlin ex-
change in New York is found in the
buying Of bills incident TO offering of
Prussian treasury bills here. The local
money market is stagnant and similar
conditions are reported in most parts Of
/ the country.