New-York tribune., 1911-11-18
FINANCIAL MARKET
Transfer of Gold from New York
to Canada and South America
Explained by Local Money
Conditions.

Trading in stocks was active through
out the day. business being well dis
tributed and representing heavy cover
ing by the bears and moderate buying
by commission houses for the account OF
substantial outside interests. Prices
moved In the direction of higher levels
notwithstanding efforts by certain pro-
fessional operators TO bring about lower
quotations. and at the close long list OF
net advances was shown, with the chief
gains in the metal issues, Union Pacific
and Reading. Traders who recently
made UP their minds that the stock mar
ket should move TO a lower level still In
sist that prices are too high and that 1t
is only a matter of time when quota
tions will tend toward cheaper figures.
but there is nothing in the current course
Of business on the Stock Exchange that
warrants the idea Of a sustained down.
ward movement. Big reactions, how
ever, doubtless will develop. and big
MARGINS should. therefore, be provided.
Substantial market interests are oullish
over the future of the country and Its
industries, and there is good reason 70
believe they are basing their present OPP
erations on the theory that progress
rather than despair is to be the watch
word from now on. Notwithstanding po-
litical uncertainties.
The financial community apparently no
longer is worrying over the so-called
trust situation, nor is 1t apprehenslve
over the future Of the railroads under
the enlarged power Of the Interstate
Commerce Commission. Financiers and
business men realize our industries must
be conducted within the law, and from
recent developments they find the intent
Of the law is to give railroad and indus
trial corporations a square deal Cen
eral business is improving, sentiment IS
more optimistic and confidence is re-
turning Money is in good supply and
credit conditions are sound A wider in
vestrnent demand is looked for, in spite
Of talk in some circles that capital is
still intensely timid and will not move
into investment and trade channels until
after next years Presidential election.
Al the close the general market was not
far from the best prices Of the day, net
gains OF from ! TO more than . points
being reported by Amalgamated Cop
pe-. American Smelling. Northern Pa
ciic, Great Northern. Reading. Union
Pacific and United States Steel. The
Street had the rather crude idea that as
p consequence Of the remarks in 'The
Outlook" by former President Roosevelt
the government suit against the United
States Steel Corporation would be with
drawn.
In view Of the large amount Of idle
funds al this centre shipments Of gold to
South America for European account are
not At all surprising and in view of the
commercial activity in Canada transfers
If the metal from New York to Mon
treal are easily explained. Canada is
prospering and American capital is find
ing employment In the Dominion. Euro
pean money market conditions have i'm
proved materially IN recent weeks, and
direct shipments Of gold from here TO
London and Paris are improbable, but
under present international money mGr-
ket conditions Europe is taking ad-
vantage of its opportunities to settle it's
trade obligations with South American
countries through the New York mar
ke. New York is using its credits to
help London and Paris, and the gold that
may be sent from here in the next few
weeks will represent loans by our bank
ers rather than drain on our resources
incident to debts due abroad, as was the
case two years ago, when the trade bal
ance was running against this country.
At that time Europe settled its obliga-
uons in South America by drawing on
its credits here. In the last year our
foreign trade has given us a tremendous
excess of exports over imports, which
means big credits for the United States
abroad, and in the same time our actual
money In circulation has increased up
ward Of S100,00OOO0.
There was time when foreign bank
ers said the United States could not
finance the requirements of a mongrel
NVe' III 'iS ioSt lew HIOHtuS iOTelBn
bankers have been tumbling over one
another to secure accommodation here.
Exports Of domestic products in the last
month, as a rule show gains over the
corresponding month a year ago, but the
total presents money loss Of upward of
Slo.OOOOOO, owing to the cheaper export
price Of cotton. Total shipments Of cot
ron In October amounted to 73S,437,111
pounds, valued at S72, 49, 1913, compared
with shipments Of 641, ,469.O71 pounds,