New-York tribune., 1912-01-30
FINANCIAL MARKET
Bear Traders Continue to Work
for Lower Stock Prices.

Stock market trading was active AT
.bo ononinr ON a movement Of prices
that showed declines in the larger num-
her Of issues from Saturdays CLOSING
losses as rule being confined to fair
eizcd fractions. The professional element
was bearish, owing chiefly to the tact
that the public paid no attention TO the
course Of quotations. to the evident uh-
,,,iuinpness of the larger financial inter-
osts to work for higher quotations ana
IN the idea that pending the conventions
of the Republican and Democratic par
ties for the nomination Of candidates TOT
the Presidency the uncertainty over the
outcone of these conventions would tcno
TO bring about opportunities for success
f,,l hear ventures. Furthermore. the bears
contended that the public would not come
into the market as a buyer with a Demo-
cratic tariff tinkering lower branch OF
Congress in session. and that in spite or
easv money and strong underlying con-
citions il would not hc a difficult matter
gradually TO carry prices TO lower levels.
IN view of the very fact that money is
.asy that fundamental conditions are
strong and that stocks as a rule are IN
good hands. the bears may experience
more difficulty, if not absolute failure,
in their campaign for d materially lower
range of stock market quotations The
only thing that would help the bears
would be assistance from the banking
interests and frightened liquidation by
investors.
The general market rallied about noon,
but prices as a rule were heavy IN the
late dealings on a limited amount Of
business. Bears on United States Steel
found much encouragement in the belief
that the forthcoming quarterly state
ment would make an unfavorable show
ing: also in their idea that the earnings
of the Union Pacific in the months to
come would not warrant the mainten-
ance of the 10 per cent dividend on the
common stock. American Sugar Refin-
ing was a strong feature, buying OF the
issue apparently coming from strong
financial quarters. Among the promi-
nent stocks Reading, New York Central
and Southern Pacific closed at net gains,
while Amalgamated Copper, Union Pa
cifc and United States Steel ended at
net losses. Prices for American stocks
On the London exchange were lower.
The contango on our shares in the fort
nightly settlement was 51a per cent.
Changes in last weeks bank statement
do not encourage the expectation OF
higher rates for money in the near fut-
ure. The banks gained more than Sl1,-
100000 on their operations with the In
toTlor, against gain of 81 1,4Ol 900 in
the same week in the preceding year,
and as a consequence of all operations
the local Clearing House institutions
added S13O7S,OO0 to their reserve re-
sources, which compares with an in
crease in the like time in 1911 Of 81 ,263,-
600 Loans showed heavy gain, the
movement representing in large part
syndicate transactions and the extension
of credit to foreign borrowers. Sterling
exchange moved little lower yesterday.
but all indications pointed TO shipments
OF gold from this centre to London in the
course of the next few weeks, some
foreign bankers expressing the opinion
that. barring a radical change in none
tary conditions here, the outward flow Of
the metal would reach heavy figures.
In times gone by New York has been
compelled to send gold to Europe in set
tlement of its obligations at for
eign centres, but just now an outflow
Of the metal will be based entirely upon
the disparity of money rates between
New York and London and will repre-
sent loans by this country to European
capitals, which will strengthen our posi-
ton in the international money market
and place us in position to call on
Europe for funds at a later period, when
there doubtless will be a need for gold
imports to help along general trade and
financial expansion. With our growing
exports of merchandise and our ability
to finance the current requirements of
foreign bankers. there should be no un-
easiness over the future Of money and
business in this country. Active growth
In our industries. however. may not de-
velop until after the policies OF the two
political parties have been defined at
their conyentione in the early summer.