New-York tribune., 1911-11-21
FINANCIAL MARKET
New York Sends Gold to Canada
and South America.

Transactions I'm yesterdays stock mar
ket were light I'm volume and represented
i'm large part the operations Of an unim-
portant professional element Price
movements showed great irreSularity,
few issues presenting more than. frac-
tional changes and final quotations as a
rule making an exhibit that differed lit
tie from that reported at the close in
Saturdays brief session. Commission
houses had few orders for public ac-
count and the substantial banking inter
ests were not factors in the dealings.
Weakness in the London market on un
founded reports regarding the physical
condition of our greatest financier encour-
aged selling among traders at the OPEN
ing of the local exchange, but little
stock came out on the movement, while
offerings when made were readily alb
sorbed. The very fact that the public
and the big Wall Street interests showed
no disposition to do anything in the
market was the chief bear argument in
the late trading when prices moved tow
ard a lower level. The Hill stocks were
notably heavy. but no investment sales
were reported. There is no good rea
son for the sale of investment stocks as
far as income yield is concerned. st.
Paul-that is. the Chicago, Milwaukee &
st. Paul-may reduce its rate in Janu-
a1y, but from present indications there
will be no general lowering of disburse-
ments to stockholders Of our railroad
companies.
The larger number of railroad cOmpa-
MES show earnings well in excess Of divi-
dend requirements. and general condi-
tions suggest expansion in operating
revenue in the rest OF the year. United
States Steel sold down yesterday. doubt
/ less as a tribute to the recOnvening of
! the Stanley Congressional committee
which insists it eventually will find some
good reason for putting the United
/ States Steel Corporation out OF business.
/ The directors and stockholders of the
| big steel concern are not worrying over
the activities OF the Stanley committee
| Nor are they worrying over the outcome
corporation. because they are convinced
/ the corporation is not operating contrary
To the Sherman antitrust law. All the
active stocks closed at net losses Union
Pacific and United States steel supply
/ ing the only instances among the promi-
nent shares where net declines amounted
| TO more than l point.
/ In view Of the reduction in bank re-
serves last week and the demand here
/ for gold for Canada and South Amer
/ lea, to say nothing of transfers of funds
to San Francisco. it is not unlikely a
frmer tendency viii develop in lending
rates al this centre. Through facilities
offered here Europe is settling its obli-
cations in South America by drawing on
! New York, and owing to market condi-
tions affecting Montreal exchange on
New York we are shipping substantial
sums Of money across the border. while
at the same time California is drawing
on our banks incident to its require
ments in connection with citrus crop
movements. The strength Of our money
! SltudliOIl ~ lflitNNtQ III lllt dDlIltN OI
our banks to finance the needs Of Eu-
rope Canada and the Pacific Coast. As
far as our position in the international
money market is concerned, there is no
reason for uneasiness over exports of
gold from this centre TO South America
for foreign account, for the good reason
that the outward movement Of the vel.
low metal really represents accommoda-
/ tion extended By this country to Euro
pean capitals Last month our credit
balance with foreign nations on trade
account amounted TO more than S79,-
900 900, and for the twelve months end
ed October 81 to more than $4,000 %
/ 900. We have enormous credits abroad.
| and we are lending them TO foreign bor-
rowers. The strongest feature Of the
financial situation is TO be found i'm the
steady growth in our export trade in the
I last year.