New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-15
FINANCIAL MARKET
Stocks Are Inactive. but Money
Is MoyinQ Into Bonds.

OOtWlthStdnQlnE tilt 'lipi " Va q
class of traders 10 bring about WATERWAY
lower levels The fact that the rates LOT
long time money are under the yleid OF
hjsh grade stocks supplies good reason
for the current indifference of the mar
ke, 10 adverse developments. and II 10
quite likely that just as long as over the
wear funds can he secured In the ne,gh-
borhood OF { per cent. against Al IN
yestment return on gilt edged securities
Of from ~ 10 Ia4 per cent. there VIII DE
little chance OF bear pressure resulting
IN noteworthy results. There ~ nothnig
IN general conditions that warrants
sustained decline in stock market prices.
end even i'm the event of decisions III
favor Of the government to-day III the
antitrust cases II is, not beneNeo tha'
anything more than a passing reacuoh
will he recorded. The Street Is prepared
for DEGREES against the companies.
Furthermore. IT is prepared for IN al
vance in prices. following possih'" tenn
porary weakness with the elimination OF
the uncertainty over the standing Of the
corporations under the Sherman law.
Underlying conditions are sound.
Business throughout the country Is In
active. but the general industrial situa-
tlou * not weak our industries have
been through q long period Of liqnida-
ton. and as a consequence a new toun-
dation has been made tnr healthy eN-
mansion in all lines. the backbone of
which will be the large cash and reserve
holdings i'm the banks. the change IN
foreign trade IN favor II the United
states and the wealth produced from the
ground IN recent yoars, with tho pros
poets Of bouutiful harvests Ia 1911. The
governments report on winter wheat in
dicates one OF the largest yicds on rec
ord. while present indications favor Al
Increased acreage ~ spring wheat. corr
AND cotton. the factors named more
than offset the depression IN 'he st"el in
dustry and m Other lines ~ work steel
trade depression Possesses non" Of the
characteristics of permanently. And the
some thing may be SAID "f the reaction
~ other departments o. trade Not
witnstandiug tho decrease ~ tic I'M
SIZED tonnage Of tho Crited states steel
Corporation aud the light volume ~ new
business being received. both GA pig IRON
ana finished steel products. the securi-
ties o. all steel companies sho' remark
= ble tlrluncss United states Stcel com
mon is being we'll handled from Wall ana
Broad streets. Mr.. Morgan Is in Eu
rope. but h has an able lieutenant in
charge = he securities With Vhi"r his
house i identified.
Prevailing money market rates at tn's
centre arc 700 low 10 attract currencv
from the interior. and in the last week
The movement Of funds has been against
Men York A. there is more money
collateral loan market the decline Ia do
nestle exchange on New York is not an
development 70 local bank
ers Figures received from the Depart
ment OF Commerce and Labor showing
the outward movement Of domestic prod
ucts iu April indicate favorable de-
tailed statement ~ foreign trade for
that month and Il further addition to
the coUntTy's excess OF exports over
imports and Incidentally a further I
strengthening NJ our credits abroad .
Money continues 10 move into bonds and /
short-term notes IN volume. and new Of /
ferings arc readily taken. II is under I
stood that there r. now IN allegiance in 4
several Wall street banking houses I
plans for new financing 70 the amount I.
elimination Of the various uncertainties /
in tho general situation. while II is /
that following the handing
Gown OF Supreme Court decisions in the !
corpora ton "a ses negotiations will be in
stituted at once for the raising OF a still
further amount Of capital incident t.
expenditures by railroads and industrial .
companies. The banks nave the money
ana they ere ready e. place II when a
demand arises. At tho moment there
j. no activity in the collateral loan mar
ket. Commercial paper is in scant sup
ply. and the bills that are offered find
ready market.
Railroad earnings have not been salts
factory in the case Of the larger num-
her Of companies IN recent weeks and
months. hut there appears TO DC no like
lihood Of important dividend reductions.
Tho -. Paul company has not earned
it's dividend on the common stock 50 Tar
I'm tho current fiscal Year and various
other companies through theft large
Ealing or IN n"t receipts, have but Il
slight margin 10 spare. Nevertheless.
opinjon In the best informed quarters
does not favor the idea Wall Street
bears arc eudea Voring to make holders
OF stocks accept. that reduced dividends
are in sight. Railroad managers do not
SEQ d long period 81 industrial depr"s
sion, and theS therefore dc not counte-
nance the theory Of lighter distributions
10 owners OF FIRST class railroad stocks
In the larger number OF instances the
railroads Of the country will END the
year with substantial balance avail
sbI. for dividends in spite - their
higher operating costs and recent de
Cliues in gross earnings, notable eH-
ample Of which doubtless will be fur
nished by the Norfolk & Western. which
promises 10 show q surplus of more than
l. per cen on its COMMON stock. As
most Of the wage increases in 1910 went
into effect on April o. that year, forth
coming net reports should show more
favorable comparisons than those Of the