New-York tribune., 1911-02-20
FINANCIAL MARKET
important Interests Not Dis.
posed to Encourage Lower
Stock Prices.

of capital toward the investment mar
kets do not reflect feeling of uneasi-
ness in banking quarters over the out
come OF the railroad rate controversy
and the corporation cases now before
the Supreme Court. Decisions against
| the companies doubtless would be fol
lowed by passing selling movement in
the stock market, but they would not
bring to an end the plans now under
way for the further development of our
industrial and railroad corporations
through the expenditure of vast sums OF
money on new construction and general
betterments and improvements. Large
amounts OF new securities already nave
been Issued. and It is proposed to brlhS
out additional offerings irrespective or
the final disposition of the railroad rate
and corporation cases. as both tnanclers
and investors realize that success for the
government in the cases now pendinS
will establish new conditions to when
operatlons can be readily adjusted with
ont affecting adversely the business stu
alton.
Efforts are not being made at the
present time TO advance stock market
prices. but the character of the support
rendered on declines proves to most
minds that the substantial wall street
interests are not inclined to permit any
thing more than unimportant reactions
Absence of bull speculation for puorc
account and by the ordinary professional
trader is not unnatural at this parllcu-
lar period, in view OF the advance re-
corded since the first of the year ana 'is
suproach of the time when important
decisions will be handed down by the
Supreme Court and the Interstate com
uerce Commission, but it is well WORTH
noting that there is little aggressive
selling and that realizing sales are easily
absorbed The average price OF the
loading railroad stocks is not much be-
low the best figures of the year, "niio
the same thing may be said OF the aver
age of the industrials, and, based on III
come yield and prospective increase III
intrinsic worth. few securities are dear
az nrevailng quotations. People WHO
have stocks should hold them. People
who are contemplating buying on DOT
rowed money Just now may do well TO
defer their purchases until after the un-
certainty over the corporation cases and
the railroad rate controversy mas ueeh
eliminated from the present situation.
The ACQUISITION by powerful fnanclai
interests of the control Of the missouri
Pacific Railway Is of greater significance
than generally credited in the street as
II means the reiuvenation of a bis rall-
road system and the Strengthening oi the
control exercised by the so-called huhh-
Loeb and Rockefeller party ot the
Western railroad situation. The Hill
ne,pIe if Is known, would have been
unite willing to join with the Goulds IN
order to keep the Gould lines IN the
hands Of the original owners, but they
neither had the stock nor could they
b1Iv enough TO weaken the position OF
the William street bankers and NO. 20
! Broadway The Missouri PACING IS IN
| good hands, and its securities are worth
more inrrinsically to-day than they were
,rior to last weeks important announce
o1ent regarding the change or control
Various other developments IN the last
week were IT. line with bull arguments.
Reports from the iron and steel trade
showed decided improvement, tho bank
Of England reduced its minimum rate or
discount. commodity prices continued TO
move toward lower levels and the coun-
trv's report Of foreign commerce IN jan
uary showed a large excess Of exports
Of merchandise over imports.
Txports were almost SJ3,000,000 larger
than for tho same time in 1910, and the
excess of exports amounted in value to
SCI. 600 600. against less than Sll.oOoOOO
in the corresponding month last year.
For the seven months ended January II,
exports exceeded imports 10y 63,oOO,VO,
Tins snlendid result being attained Who'll
~ in the last five months, owing In part
10 the increased shipments of cotton at
stiff prices Exports in the last hNe
months made a new high record. This
great gain. Of course, has most I'M
pcrtant bearing upon our position IN the
international money market, and Is cs-
pecialv welcome as from January J last
wear to September this country prac-
ticalIv had no balance Of trade IN its
favor. Since the Payne-Aldrich tarih
law went into effect. on August -. 1903,
placing some articles on the free list,
there has been an increase In the per-
centaCe Of imports admitted free OF duty.
In the seven month period ending with
January. in 1909 when the law was not
in operation, the free imports amounted
to 47O2 per cent of the total; i'm 1910.
when the law was in operation SIX Of the
seven months. they amounted TO Jo.6l
rer cent. and the first seven months or
1911 they increased to 52.02 per cent OF
the total. In January the share of inn
norts entering free of duty was 15S per
cent.
There has been no appreciablc change
IN local money market rates M recent
davs. and nc important variation rs
looked for in the immediate future. al
though the chances favor q firmCr ten
dency ir March. Bank reserves are still
large and the different institutions hold
a large amount OF idle money which
sooner or later must seek employment
ir the securities markets or in the reSu-
lar channels Of trade. The outlook for
spring trade in mercantile quarters is
excellent and a greater commercial in