The Washington times., 1912-05-26
STOCK MARKET SHOWS A GOOD TONE
THOUGH TRADING HAS BEEN LIGHT
Increasing Industrial Prosperity and Outlook Are
Development New
Cycle of Special Operations Pending
BY JOHN GRANT DATER
Special Financial

bend. many OF which are Issued on in
fated valuations of property, which has
been subject to no Independent ap-
prnisai. and some Of these issues are
course u number Of the older and more
succcssf'il and expertly managed COM
pa1ies, which have sold debentures,
safe. but some so.called bonds out
standing have nothing but a company's 8
equities In unimproved suburban prop
erty, back of them. and would entail
total loss Il anything went wrong with
the concerns.
Big Bankers for Action.
Among features OF more than pass
Ing interest In the weeks budget, were
a capital readjustment plan proposed by
the United States Rubber Company. a
definite and final agreement on the
New York subway situation, and re-
ported negotiations for the sale of the
Cumberland corporations holdings Of
seaboard Air Line stock. In order to
provide for the payment of $l5, 100000
notes, maturing on June Is. or the three
II may be said that the Rubber plan
alone received an unfavorable reception
In the security maorket. and this was
doubtless due to the suspicion, which
has attached itself to any developments
In the company, since the allegations
made some years ago. that an inside
clique had profited personally by a pur-
chase of shares of a subsidiary prop
erty turned over to the parent company.
But what is evident to Wall Street In
these larger transactions Is that imam
ciai developments are not halting, in
consequence of political uncertainties.
In the local subway matter, the Street
found legitimate basis of encourage
ment, because Of the very prominent
banking interests, which are associated
w nrnnnRad N.
The Street argues, naturally, that neith-
er the firm of ]. p. Morgan g. Co.. or
Kuhn, Loeb & Co., who, II is under
stood are going to undertake the financ--
appeals has passed upon the constitu-
tionality of the so-called preferential
payments, would engage In extensive
operations unless they felt that the
time to do so was favorable. The fact
that such interests are now busy with
this matter-invitations to Morgan
underwriting of t170, 00,000 Interborough
bonds going out Saturday-ls enough to
inspire the financial district with IA
vorable regard for the traction PROPOSE
ton and will doubtless aid sentiment
Crops and Money.
Conflicting reports on crop conditions
impaired much irregularity to the COM
modify markets, and wheat and corn.
which continued their decline, at the
outset INC Wtth TSSONSEeu doite
sharply before the close. Advices from
the Southwest concerning wheat con.
ditions were peculiarly confusing. Whiie
II cannot be said that the security mar
ket Is paying much attention 10 the
harvest outlook, the conditions are be.
ing watched narrowly by banking and
merchandise interests, for the very
much reduced visible supply OF wheat
on hand the world over renders salts.
factory crop this year more important
than ever, II such thing Is possible
Without doubt, more will be heard from
the crops, later on than at present, as
a market factor, for the start was poor,
but at present the precise situation
seems unusually obscure.
Advices from abroad were of some
what unsettling nature. particularly as
/ to the renewed outbreak OF labor In
England. An extensive liquidation was
reported in the London market, particu-
larly in British home rails, and the SELL
ing found some reflection in this mar
ket. German Developments also were
somewhat unfavorable. due to an Of
fcial warning against speculation de.
livered by President Won Gwinner oi
the Deutsche Bank of Berlin, in the
Prussian upper chamber. This resulted
1 in some renewed borrowing by Berlin
in New York. Money market conditions
however, ruled easy at unchanged rates
| The bank statement was highly faVor'
able presentment, particularly as te
specie and cash holdings, which increas'
| ed S907, 600. Loans increased $S,sSS,OOO
! and a gain of 11.62l 900 was reported IN
deposits According to the figures OF
the statement giving actual conditions
! the surplus reserve increased $S'oSS'eoo