New-York tribune., 1912-01-25
BANK STOCKS ON STOCK
FINANCIAL MARKET
Efforts of Bear Traders to
Weaken Stocks Fail to Bring
Out important Offerings.

Although bear traders made aggressive
efforts to bring out stocks In yesterdays
market, there was no important hqul-
dation. and declines, as a rule, were con-
fined to fractions. Many professional
operators were inclined to the belief that
a large number of stocks were in weak
hands. but the theory was not borne out
nv the course of the market. which rep
resented a business Of less than o1O,OcO
shares, Of which the larger part was
supplied by Reading, Union Pacific and
United States Steel common, the last
named ending at a net loss of 1s while
Reading lost q and Union Pacific 4.
Traders looked for weak points. but their
discoveries gave them little satisfaction.
On realizing sales the Hill shares sold
down; likewise the Interborough-Mer
politau issues and Lehigh Valley, Atchi-
son, Erie. General Electric and st. Paul.
among the prominent stocks, were strong
features, st. Paul apparently being
bought on the idea that an expected re-
duction in the dividend had been more
than discounted. The reaction that took
place in many stocks was considered
nothing more than a reflection of ad-
vances recently recorded. Among the
specialties American Cotton Oil on light
dealings was a strong feature, buying
being based upon the increased volume
of business reported by the company and
the fact that cotton seed can now be OBJ
tained at low cost, owing TO the large
cotton crop, this cost insuring the sale
of the company's product at a price
which will enable the concern to enlarge
it's market TO a material extent. Selling
of Lehigh Valley was credited to large
speculative interests that have been bulls
on the issue for many months. Money
rates were unchanged and sterling was
10 points lower Interior exchange On
New York continued to reflect shipments
of currency to this centre. Offerings OF
money for the account Of local and out
of town institutions were heavy, a re-
Election of which was found in offers by
banks to buy New York City revenue
warrants running for six months on
per cent basis. There was some buying
Of bonds by mercantile houses that had
large amounts of idle funds on hand.
The larger financial interests in Wall
Street are doing nothing to encourage an
active bull speculation in the stock mar
ket. They are standing pat. In finan-
cial circles 1t is realized that prices for
the larger number Of securities are not
cheap at prevailing levels, as far as in
Vestment return is concerned, notwith-
standing the ease in money rates, while
the fact that the public probably will
not come into the market until existing
political uncertainties have been elimi-
mated is fully appreciated by banking in
terests. Nevertheless, the control of
parently preclude the possibility of the
development of a successful bear cam
paign, especially as the monetary situa-
ton is against the operators for lower
quotations. Banking interests wish to
preserve stability in the securities mar
kets in order TO put through financial op-
erations, the success of which depends to
large extent upon easy money, a
strong undertone in market values and
confidence on the part OF business men
and investors that progressive improve
ment is under way in our industries
There is no doubt regarding the under
lying strength In the stock market, and
there is no evidence that confidence is
not growing and that conservative ex-
pansion is not taking place in mercantile
manufacturing centres. The country is
in a strong position in relation to its
supply Of money, its export trade and It's
wealth as represented by the results of
farming operations in the last year, but
the general volume of financial transac-
tions is still being retarded by politics,
which just now promise to be more
mixed than in any preceding Presiden-
tial year. The chances are that the cur
rent year will be marked by extreme
caution and conservatism on the part of
business men and financiers, with a ten
dency on the part OF the latter to give
more attention to the development of
public utility corportions than to regular
stock market dealings.