New-York tribune., 1912-12-02
REVIEW AND DIGEST
Stock Market Continues Its Un-
certain Tone-FOreign Situ-
alton PerpIexing-CaII
Money High.

Any attempt TO draw an inference from
the events of last week which might form
a basis for estimating or predicting the
near future in stock market operations
must be mere guess work. Movements
have been so kaleidoscope that only the
temporary scenes as presented could be
considered, each day having an individu-
ality which ended as the record Of events
Of that day had passed. The news from
Europe regarding the progress OF peace
negotiations has been hot and cold; one
hour would tell Of an agreement prac-
tically sealed between the powers tor
peaceful ending Of all differences, wmie
the next would be filed with sensauo'di
predictions of a disastrous war ABOUT 10
begin. Dispatches stated that there was
4 mobilization of troops by Servia ana
Russia on one side and active prepara-
ton by Austria and Germany on the
other. and suggested that England ana
France would be involved in the move
ment formulating 10 tear asunder all
prospects of peace, which sent snuouer
through the whole civilized world at the
awful consequences which would certain
IN follow so terrible calamity. iho
mixed character of the news and It's
vacillating tone awakened in the mlhds
OF the people away from the scene Oh
possible conflict serious doubts regard
ing the authenticity OF the Information
cnrresDOndSuta OF
Europe a reputation for sensational ana
yellow journal methods equal to II not De-
yond that enjoyed by correspondents our
ing various other periods OF excitement
Continental bourses during the week de-
veloped an Indifference to the news from
the war zone which was reflected In the
London trading. also in the New YORK
stock market. Price movements connneo
themselves more to local influences in
the main, indicating an improved tone
and hardening Of prices. One OF the I'M
portant factors Of the New YORK STOCK
market during the week was call money
which reached its highest rate since the
panic days OF 1907-'0S. The action OF
the call money market was not only due
to a heavy demand for money from can
ada, the interior and commercial neces-
stiles, but may be accepted as warning
of bankers to stock market spectators.
Money is in demand and will remain hrm
until after the frst of the year, but ap-
parently for all commercial purposes
while the rates will have hardening
tendency, examples of extremely hlsh
money. except I'm occasional call rates
are not probable. Among the Leading
financial interests there is strong SEN
timent that Secretary MacNeagh should
deposit funds in the banks to tide over
any possible contingency Of runaway
money market
The strain which prevails abroad. due
10 the uncertainty of the war situation
which has caused the banks OF the sew
eral countries to adopt restrictive meas
ures to preserve their gold reserve. IN
dicates an inadvisabilit of this country
drawing heavily oil the gold in European
markets. II is pointed out by some bank
ers that the United States Treasury
would display consideration for existing
foreign conditions by coming 10 the res
cue and relieving the necessity for fur-
tnPT ROi1 dt PitoNiN
The prejudice which exists in the minds
Of many people, particularly in the in
terror, against the Treasury Department
giving assistance to New York banks for
stock market speculation might be easily
dispeled by having Treasury funds scat
tered among institutions at various in
terror points This would relieve the strain
on our local banks, and the good judg-
ment OF New York bankers would pre-
vent any undue use Of money to assist a
professional stock market.
The underlying strength of the stock
market. from an investment point OF
view, unquestionably is good. but specu-
latively its future action is doubtful.
Forceful evidences of the country's
prosperity have been manifested by the
reports OF railroad earnings during the
week Atchison, Northern Pacific, South
ern Pacific, Chicago & Northwestern.
Reading and the Pennsylvania system
have all shown large Increases in both
gross and net. and have told the story o.
rapidly developing transportation de-
mands, due to record breaking crops and
industrial activity. The reports Of the
commercial agencies and the reviews OF
various trade publications devoted to tie
iron and steel trade have been more
wholesome in their summaries OF national
trade development than at any time this
year II is not easy to discover flaw In
our fundamental construction OF trade
and industry, and 1t is necessary to look
to the threatened invasions Of our pre-
gressive betterment rather than the
actual evidences of a checking OF COM
mercial growth. The next few weeks
probably will be important in the history
OF the events of the world. During that
period II would seem that either the war
clouds OF Europe will disappear or some
exact information will be forthcoming to
relieve the tension Of uncertainty. No
evidence has been adduced which would
cast shadow over the general prosperity
OF this country. II none but home in
fuences shall be encountered the prog
Yess of business seems TO be assured, At
least for several months TO come. In the
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