New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-09
FINANCIAL MARKET
COuntry'S Money Supply Heavy,
but Capital Is Still Timid.

l
tage Of attractive opportunities to in
crease their bank balances. The larger
interests were responsible for bringing
/ TO an enc tho bear movement that col
| lapsed with the announcement made by
| the United States Steel Corporation re-
garding its attitude on the question Of
dissolving and its belief that It is not
operating contrary to the provisions Of
| the Sherman law, but they have made
no efforts to inaugurate an active bull
movement, while the general public ex-
| hibits absolutely no interest in the daily
| proceedings on the Stock Exchange as
! far as speculation IS concerned. Stocks
recently were sold 10 a standstill, but
since that time a big short interest has
! been covered. and although in the last
week there has been more or less ma
| npuvring for lower prices extreme diff
| hculty has been experienced I'm bringing
about declines. At the moment the
market appears to be upon a stable
basis. with little prospect Of a big move
ment In either direction. There is no
incentive TO trade actively on either side
Of the account.
Unfavorable factors in the general sit
uetion apparently have been discounted
by the fall in prices that has taken place
since the early summer. but. Of course,
that does not preclude the possibility OF
further declines in the event Of disturb
ing developments. Sentiment IN bust
ness circles appears to be more hopeful
but capital is still timid and refuses 70
enter new enterprises IN volume In
deed, no efforts are being made at the
moment 10 foster new undertakings IN
any department Of money and business.
and from current indications some time
will elapse before anything in the nat
ure Of real activity viii be seen in the
industrial world. James J. Hill, chair
man Of the board Of directors Of the
Great Northern Railway, is quoted as
saying there is nothing the matter with
business except politics; that there IS
plenty Of money in the banks and that
ultimately the country will run into
period Of great prosperity. The political
situation and the uneasiness over the
outcome Of the so-Called war upon cor
porations are restraining capital al the
moment. but we believe with Mr.. Hill
that eventually conditions will be read
justed TO a basis that VIII encourage a
wide waev Of Industrial expansion in the
United States.
Our credit is good and our supply of
money is large. In the last twelve
months the amount Of money in this
country. exclusive Of federal Treasury
holdings, has increased more than ST.
100000 In the same time we have built
up a foreign trade balance Of more than
$3.50 100000. and our financial strength
is such as TO enable our bankers 70 lend
their credits abroad and TO view with
eouanimity shipments Of gold 10 Paris 20
help out the Bank Of France, which has
allowed its holdings Of the yellow metal
70 decline TO an unusually low level for
this period of the year, Ordinarily this
country has maturing finance bills 20
meet abroad at this season, but this year
our bankers have done no borrowing In
Europe, and as a consequence our posi-
ton in the foreign exchange market Is
unusually strong. The interior has not
been compelled so far 10 call actively
upon New York for money incident to
crop financing needs, owing to the strong
cash supplies Of the oUt-of-town instltu-
tons, which, as a result Of slow trade.
have not been placing much money on
mercantile. loans. while the local banks
for weeks have done little in commercial
and Stock Exchange accommodation, all
Of which is reflected in one Of the
cheapest money markets ever recorded
at this time Of the year. Payments at
this centre 70 the Sub-Treasury have
been in excess Of government receipts
and gold shipments have taken $500
600 from New York. Otherwise bank OPP
erations in recent days have amounted
TO little beyond the routine overtime
counter day-to-day transactions incident
10 regular business transactions.
Prices for most stocks and bonds are
not dear at prevailing quotations Many
issues as a consequence OF the market
depreciation that has taken place from
the high points Of the bull movement
following the panic OF 100" may now
be bought to return from 10 more than
& per cent. Some dividends may be re-
duced, but the chances DO not favor
lower rates except In a few exceptional
cases. NEUTRALITY-SUSPICIOUS. the pessimistic
talk that is heard in quarters where peo-
pie refuse 10 believe that We are not
entering a period OF industrial and fiuau-