New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-17
FINANCIAL MARKET
Easy Money Fails to Encourage
Operations in Stocks.

almost entirely of the operations Of an
unimportant professional element. Com
mission houses were not factors in the
dealings. the larger speculative Wall
Street interests showed no inclination to
have anything to do with the Stock Ex-
change and capital was not active in the
investment division. except to some ex-
tent in over-the- counter operations. The
room traders were unable to scalp the
smallest sort Of profits, except at rare
intervals when a semblance of action
developed. as, for instance, following the
publication of the governments crop
report. which for brief period was con-
sidered most unfavorable forecast Of
moderate declines when II became
known that conditions in the wheat and
corn belts were not as strong, based on
the governments system Of percentages,
as they were a month ago but little
stock came upon the market and no in
banking circles because Of a certain
amount of deterioration In corn and
wheat in June. AS matter of fact,
crop conditions suggest average harvests
In the grain section of the country and
record breaking yield Of cotton. The
indicated corn crop on the basis of June
figures of 1856, AS 900 bushels, against
last years record brea..ing harvest Of
8, 126, 10000 bushels, and the total in
dicated wheat yield of 702 .S91 900 bush
els, compared with 695 .443, 900 bushels
in 1910, certainly do not warrant en-
thusiasm on the part of bears in the
stock market or bulls in the grain mar
kets.
Reason for the current duness in the
stock market can be found in the I'M
Willingness Of the so-called public to
make commitments pending the elimina-
ton Of harvest uncertainties. in the alb
sence of large supply of stocks avail
able for speculative purposes in the fear
that as long as Congress is 10 session
disturbing political factors may de-
velop and in the tendency OF capital to
move into constructive investment en-
terprises rather than into speculative
chances. AS far as speculation is con-
cerned there is practically no business
in stock brokers' offices at the moment,
and the outlook is not at all promising
for anything In the nature Of big profits
from commissions in the immediate fut-
ure on what may be called borrowed
money accounts, despite the fact that
the cost of carrying such accounts Is ex-
tremely low. Indeed. dividend paying
stocks carry themselves. The general
community is not being injured by the
lack Of speculative activity in our vari-
GUS markets, and the fact that the larger
number OF securities that formerly were
in abundant supply for what amounted
to little more than gambling purposes
are now tied up in investors boxes GER
tainly is not a cause for regret except
among commission houses that depend
upon speculative accounts for a living
The actual needs Of our growing popu-
latlon are steadily decreasing the bust
ness Of the speculative markets. espe-
cially the markets for grain and cotton,
while the growing pre-eminence Of in
vestment operations over transactions
based on wholly gambling risks Is
strengthening the material condition Of
the country.
The general situation presents many
whole
present conditions encourage the ex-
pectation that any marked change in
the stock market in the rest Of the year
will be in the direction Of higher prices.
A most encouraging indication Of prob
able expansions in our industries is
found in the United States Steel Cor
poration's report Of untitled orders nn
/ hand at the beginning Of the current
month, and in the report of the Copper
Producers Association. showing a reduc-
ton in stocks on hand and an increase
| I'm deliveries in June. The big steel con-
Germ reported an increase in untitled or
ders in June Of 246.S71 tons, and as the
steel trade is considered the barometer
1 of business the figures were accepted in
/ industrial circles as a forerunner Of i'm
provement in all lines. United States
Steel common is being quietly absorbed
| by substantial interests. who believe that
the actual value OF the stock is in the
( 9Us rather than in the 40s, the latter
being the market valuation of the Com
missioner Of Corporations, who figured
out a value OF the concerns tangible as
sets of S1.1S7,O00,000. The commits
sioner. however, values the ore tonnage
owned by the corporation at 100000
600. while steel men who know their
business assert that the ore is worth 81
a ton, which compares with 14.2S cents
a ton. estimated by the government. AL
lowing a valuation Of 30 cents ton, the
Steel Corporations ore properties and
leases are worth S35O,00O, 900, equal to
$50 share additional to the $40 Of the
governments report.
There was no change in money rates
last week, and no suggestion IN the char
acter Of the operations in the loan mar
ket Of an advance in quotations in the
very near future. The stock market and
mercantile demand is light. Money for
over the year is the most sought for OF
time maturities. and loans to run that
distance can be secured at from 3M to 81
per cent but the chances are that these
rates Will not continue for any extended
period as underlying conditions point TO
the development OF trade and speculative