New-York tribune., 1912-11-04
PROSPECTS BRIGHTER
IN LONDON MARKET
Stock Exchange Prices Recover
Losses Caused by Outbreak
of HoStilitieS. Z
J. S. ELECTION AWAITED
When Result Is Known (Who-
ever Is Successfully a Marked
Revival of Speculative
Activity Is Likely.
TBy cable to The Tribune.I ]


London. Nov. 3.-The settlements on
,be London Stock Exchange and Con-
t,nsntal bourse were effected last
u,Aek without serious trouble. There
we're three small failures in London,
hut all were of distinctly minor inn
nortance. and a general disposition
was shown 10 make matters easy.
The stock markets Of Europe are
rapidIy regaining the losses caused by
Che outbreak of hostilities in tho Bal
kaus. the recovery of confidence being
due in large measure to the growing
belief that the questions which have
been the chief cause Of disturbance in
Furope for several generations are
about TO be permanently settled. The
rapid success of the allies revealed
degree Of latent power in the Balkan
states which has been hitherto quite
rnguessed. and the hope is now widely
held that a permanent federation Of the
Balkan States will be accomplished that
will finally put an end 10 the Near
Eastern question.
The evident determination of the Bull
garians 10 dictate their own terms OF
peace in Constantinople is causing
conduct OF the powers so far, the feel
ing is general that they are little likely
10 offer more than a feeble opposition
TO the wishes Of the victorious and de-
termined army, and final settlement
of the long standing Near Eastern
problem and the partition of Turkey
will be effected by the allies, with the
great powers, after all their large
words, acting as impotent spectators.
v. S, Stocks Bought Up.
The new feeling Of hope is shown by
the considerable purchases of securi-
ties effected last week, particularly by
British investors, who bought stocks
freely, and who on Thursday, when the
market was weak in New York. pur-
chased large quantities Of American
stocks. That a big advance has not
occurred in American securities during
the last few weeks has resulted en-
tirely from the European situation and
from q desire TO await the outcome Of
the Presidential election.
one Of the great underlying factors
of strength on the stock markets is the
probability, indeed the quasi-certainty,
hat the amount of investment
money In the United States in the cur
rent year will largely exceed all previ-
Gus totals, and that as a consequence
a substantial advance in the prices OF
stocks is likely to be witnessed. The
prosperity of the United States Is re-
feoted by the great expansions of the
earnings of American railways from
week 10 week and from month TO
month which are now being shown.
AS soon as the results Of the election
on Tuesday are known (whoeVer is
successfully, a marked recovery in the
markets, more especially in the Ameri-
can market. is likely to be witnessed.
tn the Money MARKET
There was but little change in the
condition OF the money market last
week. beyond the rather heavy demand
for short loans on Wednesday (Stock
Exchange pay day. and on the last
day OF the month. On these days fair
amount was borrowed from the Bank
Of England at 51s per cent to get over
the end of the month.
with the turn Of the month the
supply Of call money again became
abundant and day to day loans are now
obtainable at 4 per cent and short f1xt-
ures at "A per cent. Furthermore. the
demand for loans at the Bank OF Eng
land has disappeared.
The outlook is now distinctly better
than It has been for some time. The
bank is in a fairly strong position for
the time of the year. The stock of gold
b more than $175,OO0.OOO and the re-
Serve more than $135. 100000, and there
3 now prospect that the bank VIII re-
cslve a considerable amount of gold