New-York tribune., 1911-09-21
FINANCIAL MARKET
New York'S Loans to Berlin IN
Recent Weeks Estimated
at $40,0O0,000.

Wall Street traders finally have made
I'D their minds that the dividend on the
common stock OF the United States Steel
Cornoration will be reduced at the next
dividend period to a 4 per cent basis
Until yesterday the chief bear argu-
nent on the stock was the possibility
Of a government suit against the big
steel concern, but NV the matter or
naturally contracting earnings III tho
current period Of general business dul-
ness is receiving more attention, and as
a consequence Of its study Of the situa-
ton speculative Wall Street can see In
the decline in the price Of the stock TO
practically an per cent basis cut In
dividend payments. If the dividend
should be reduced to per cent the yield
ON the basis Of the stocks present price
would be a little more than per cent,
or about the same as when the issue sold
in the neighborhood OF so with q D
ner cent dividend The fact that Steel
preferred, which is recognized as a solid
investment, declined under the influence
OF liquidation helped 10 encourage bear
sentiment on the steel industry and in
duced further irresponsible talk Of dis
solution Of the United states Steel Cor
poration II is possible for spectators
10 create enough fear I'm the minds Of
small investors 10 attract sales by the
! latter. bur II IS 10 he hoped that no
/ holder OF the Steel securities Will sacri-
| fee his investment because of the Va
rious frightful things that bear traders
assert must develop IN the steel situa-
| ton both as regards the companies and
| the trade. The general market az rule
was weak in the best part Of the day
under the same sort of selling pressure
/ that has marked the course of opera
/ tions in recent weeks. Professional
traders hammered prices, exhausted
| margin accounts were closed out, sub
| stantial interests continued 10 buy on a
/ scale down without offering any sup
port. and shorts took profits on attrac-
tive opportunities. New low records for
| the year were made by many issues, in
Guiding steel and Union Pacific while
further new low points We're predicted.
/ Conditions are not yet ripe for a sus-
/ tained bull market, but the man who
can buy stocks outright and forget them
eventually will make money by the
transaction. Prices rallied to a small
extent before the close, and outside Of
a few issues net losses were confined 10
fractions. The Steel sinking fund per
cent funds were as weak as the stock.
The Erie shares again were strong feat
ures
Il Is estimated IN we'll informed quar-
ters that American bankers have ad-
vsnced upward Of $40,000Oo0 to Ger
many in recent weeks. The operation
however is wholly without political sig
nifcance, the inactivity Of money here
and the attractive rates quoted in Ber
lin being entirely responsible for the eX-
tension Of credit to German borrowers
American bankers have not been asked
10 assist the German government, but It
is quite likely they would do so If such
q request should be made TO them. For
eign discounts remain firm, and ire
spective Of the political situation
strength may be looked for throughout
the fall owing TO the general require
ments Of business and the crops. which
always are heavy IN the autumn season.
Doubtless the Bank Of England will in
crease its minimum rate OF discount
either this week or next, and if money
continues TO rule at current easy fig
ures IN the local market foreign ex
change rates here viii not move 10 the
gold importing point. The fact that this
country has large credits abroad on mer-
chandise export account, is not debtor
on loan account TO foreign bankers and
is able to place It's money in Europe at
| attractive rates supplies a most sat
isfactory evidence Of our great financial
| strength, and it ought to encourage a
more optimistic sentiment in money and
business circles over the future. British
consols were weak again yesterday es-
tabishing 4 new low record for modern
times