New-York tribune., 1911-12-13
BANK STOCKS ON STOCK ExcHANe
FINANCIAL MARKET
Money Rates Decline, While
Sterling Exchange Advances.


On a light volume of business stock
market prices showed q fair degree OF
strength in the larger part of the day.
While there was little commission house
trading for public account, brokers re-
ported inquiries from out Of town re-
garding the possibility of securing stocks
at lower quotations, but the general
character Of the selling throughout the
session did not encourage the expecta-
ton Of materially lower levels in the I'M
mediate future, despite the fact that
room traders. as a rule, appeared to be
working for a substantial reaction. The
room element was so much impressed
with the budget of good news of the pre-
ceding day that 1t became beartsh, on
the theory that the larger interests had
taken profits in Mondays operations and
would be quite willing to see tempo
rary lower range. substantial banking
interests are not parting with stocks at
present prices. Furthermore, the ordi-
nary investor is not liquidating his hold
=.
buy good stocks and bonds at prevailing
quotations. Most OF the Wall Street
houses are bullish in their market letter
comments, basing their opinions on the
sound idea that values and prices ulti-
matcly viii be governed by underlying
factors, which are beginning 10 show de-
cided Improvement. The iron and steel
industry. which is our best barometer Of
trade. reports increased orders and a
better price situation, while the same
thing may be said Of the copper metal
market, In which electrolytic copper is
now selling at higher level than at any
time since the early part Of 1910. One
Of the best features of the situation Is
the growing confidence in business cir
cles over the future. Confidence begets
prosuerity. Evidence Of confidence 1t
this time is especially significant in view
of the approach of a Presidential year.
The general market closed quiet and
firm. with fractional net gains In most
Ct the prominent issues There was a
good speculative demand for Third Ave
nue. stock and bonds.
Domestic exchange rates indicate an
active movement of currency toward this
centre. while money market rates here
suggest a material improvement in bank
reserves at the end Of the week. II is
not expected that loan quotations will re-
turn TO the abnormslly low levels re-
-Ixs
autumn, as demands upon the market
from mercantile and speculative sources
are increasing and preparations for the
financing Of heavy January interest and
dividend requirements soon will be under
way. Stringency in money, however, is
not likely 10 develop. The country at
large is well supplied with funds, and,
furthermore, our position in the interna-
tional money market is exceedingly
strong and will not be upset by the
usual end Of the year remttances 10 Eu-
rope on account Of interest on American
securities held abroad and large trans
fers Of Christmas funds 10 the "old coun-
try by foreign born American citizens.
For the eleven months ended Noven Der
! so, November figures estimated. the
United States had a credit balance on
trade account with other countries Of
more than S600OO0OOO. and from cur
rent indications results in the new year
will he equally satisfactory. The coun-
| try's heavy excess OF merchandise ex-
ports over imports supplies one of the
strongest factors in our financial situa-
ton. In the London Stock Exchange
settlement yesterday the contango on
American stocks was 5l4 per cent,
against AZ per cent two weeks ago,
while the banks charged AZ per cent for
Stock Exchange loans, compared with
IA per cent at the last preceding fort
nightly settlement The higher rates
are not unusual for this time Of the
year, and the chances are that from now
on until well into January discounts in
all the European financial centres will
rule at relatively stiff figures. Money
rates are high In Berlin, and German
! bankers are making bids against the
| New York market in order TO retain
| American capital lent there in the sum-
mer and autumn. Sterling exchange
rates were strong yesterday, chiefly in
response TO the demand incident TO the
| London settlement. while money was