New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-22
REVIEW AND DIGEST
A Week of Market Variations
Good Undertone Exhibited.

dency on the part Of commission
houses, 1t would naturally be assumed
that the market was full Of vulnerable
spots, but various instances OF bear at
tacks have failed to discover the thin
places, and support was demonstrated
by good buying on the several dc-
clines. Instead OF being really weak
the market displayed strength ana on
the whole has shown a favorable teen
nical position Of Improvement Fur
Their. at home. by good prospective
crops. a broadening of business spirit
and enterprise and absorption of labor
TO the degree of scarcity in steel and
allied interests the market, by all laws
of discounting the future, 1t Wouiu
seem, should exhibit virile activity ana
an irresistible tendency to shoot up
ward. That it doesn't betrays weak
ness, and the effort Of the student is
to discover the real cause. Some arc
inclined to the belief that the shado"
of politics like the sword of Damocles,
hangs by a slender holding over the
market and acts rs a damper on buli-
ish enthusiasm. But the expressed
sentiment of the great financiers and
industrial kings largely dispcls the
theoretical hypothesis on which appre-
hensive traders base their reasoning.
The money prospects form another Cd
stacle TO q bull movement in the minds
OF some. But not at present or In
the near future are there any real
signs suggesting money troubles IN
this country. Tho inquiry as to the
cause or causes Of market uncertainty
must turn to the question or invest
ment values and the congested condi-
,tion of the investment market, not only
here but abroad. Just what consti-
tutes the earning power Of the dollar
to-day is q debatable problem. NO
longer Is the American investor salts
fed with 3 or per cent on his saw
ingc. Even though he were inclined to
be content, ignoring the attractions OF
the higher yield securities coming into
the market, his domestic demands are
imperative and he Is forced To secure
a larger income on his investments to
supply the increasing needs Of family
life. The high cost Of living Is no
longer an idle byword, but a stern
factor In q world Of changing econom-
les, not only affecting commodities but
influencing all branches Of commerce
and finance. 1t has invaded the In
vestment field and stagnated the
former highly respectable bonds and
other securities of low interest yields.
Following the advance of the times, old
systems in all branches Of business
are giving way to new ideas and in
vestments must head the correspond
ing inevitable call OF the period. Con-
servative security issues Of low yields
are going through process Of yield
readjustment. In the years gone by
the securities, carrying larger interest
requirements, have been confined
mostly to the speculative stocks and
bonds of doubtful stability. There has
been a development Of public utilities
of the quasi-municipal class especially
gas, electric and hydro electric light,
heat and power corporations. the Sc
curities Of which have strong funda-
mental value and an accretion Of I'M
derlying security annually, the ratio
Of increase being governed by the
growth of population in each distinct
locality. Practically within a decade
this branch Of investments has empha-
sized a growing popularity, due to
large earnings, which have been al
most without exception in well organ
lied corporations Of this class. To
these and some Of the strong indus
trials investors have been turning
their attention, owing to the higher
afforded. If not the chief reason, a
very important one why English con-
soils have declined in the scale Of mar
ket quotations is the low yield Of
these securities and the increasing de-
mand Of foreign investors for larger
incomes. The high cost Of everything
is affecting the foreigner as we'll as
the American. though possibly not in
the same degree. AS to the worldwide
prospects for commerce and industry.
they appear to be gradually develop
ing to a degree Of activity when the
executive energy OF the nations will
be occupied in providing means for
meeting the requirements Of increased
consumption. The financial situation
at home and abroad presents an i'm
proved appearance, as evidenced by
the weekly bank returns Of the leading
money centres. The Bank Of England,
the Bank Of Germany and the national
banks Of the United States all show
betterment. Present crop indications
are that there will be abundant har-
vests, which will stimulate business in
all branches. The troubles of the past
are not wholly eliminated, but they
are fewer than for some time.
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