New-York tribune., 1912-01-22
FINANCIAL MARKET
Stocks Generally Higher and
Money Rates at Easy Levels.

the advance representing in large part
the operations Of the professional ele-
ment. which has been especially active
in the hard coal shares, United States
Steel, Union Pacific. the Hill stocks and
the Tobacco issues, including the new
tobacco securities recently listed. Ameri-
can Tobacco gained upward of points
In the last week, the Liggett Myers
Company "a points and the P. Lorillard
Company 10h points. Reading ended
the week at a net gain of 61s and Jersey
Central showed an advance Of Is points.
These gains, Of course, were exceptional,
as elsewhere in the active list prices or
dinarily presented only insignificant
changes, although the general tone of
the market in the last two days was
one of decided strength. In the bond
market both speculative and investment
buying was reported, transactions In
mortgage issues representing total par
value of more than $25,OO0O00. Senti-
ment is bullish, and operators who would
like to bring about a bear movement
find in money market conditions a for
midable obstacle to transactions for
lower quotations.
Money continues TO move to this cen
tire from the interior in volume. and rs
consequence the Western banks are
accommodating large balances with local
institutions. Call money Is quoted IN
the neighborhood of . per cent, while
short time accommodation can be Sc
cured on a basis Of from 212 TO 3 per
cent and at the same time banks here
are able to buy long bills drawn on
Paris and London on a net return OF
31s TO 3Ss per cent. Bank conditions
abroad are stronger than recently re-
ported, but Notwithstanding this fact
European rates for funds are well above
the levels quoted In New York and for
eign capitals are still borrowing at this
centre on direct loans and are calling on
South American ports in settlement Of
their obligations in South American
countries. Gold coin TO the amount OF
more than S2,O00,OO0 was engaged for
export from New York last week TO Cen
trail and South American countries. the
operation representing borrowing by Eu
rope here. Exports were made from
New York to South America year ago,
but at that time Europe was in a posi-
tion to send the metal through It's credit
- yx, h. vnTt
This country is no longer a debtor ma
ton. Exports of merchandise from the
United States for the last year exceeded
imports to the value Of more than S559,-
100000, total exports for the twelve
months being heavier than ever reported
in preceding year. exceeding the record
of 1910 TO the amount of S226, ia. .237.
The highest preceding export record was
rnade in 1907, but the figures Of 1911
surpassed the 1907 total by more than
S17O,O00OOO
At the close Of the last week German
banking interests were active bidders I'M
this market for money, the inquiry be-
ing based in large part on arrangements
under way in Berlin to bring cut a large
government 4 per cent loan and on ma
turing loans made by Wall Street 10
Germany last fall. German borrowers
offered 3ai and per cent for renewals,
and the course of the local foreign OK
change market reflected a considerable
| amount Of business at the figures named
II is estimated that cur bankers who ex-
tended accommodation to Berlin in the
autumn will make on the original loans
and the renewals close to Z per cent. In
terror banks also are lending abroad
some of the advances being made by
Chicago New Orleans and ST. Louis run
ming into heavy totals. It is not I'M
likely that a part Of the new German
government loan will be taken by this
country, unless a radical change should
take place in the domestic money mar
ket, of which there is no indication. II
is generally believed loan quotations
here will remain easy for months TO
come, as bank reserves are enormous
and constantly are growing. Clearing
House figures of the last week show
that the inflow OF cash was so great as
to advance the reserve above legal re-
quirements to more than 1000, 900, the
improvement being made in the face of
active expansion in loans.
What the effect will be of growing
bank reserves on security prices remains
TO be seen, but it would seem that, based
on the movement Of quotations in MANY
past periods Of easy money, the general
level should gradually advance. Ona
thing Is quite evident-namely, that the
market has not an overabundant supplv
Of stocks for sale at existing prIcee
Advances recorded at the close of the
last week were on a relatively small
volume Of business, and traders who
covered their short contracts were COM
PEELED TO pay rather stiff figures for the
stocks desired. 1t is true that current
prices for the chief railroad shares and
the leading industrial issues are NOT
really cheap for the investor who insists
upon a large return on his money, but
this fact does not preclude the possIbil-
lty or further advances Just as long az
money rates refuse to go higher. The
Presidential campaign, now in its In
fancy, is not bothering Wall Street or
the country's business interests, but Of
course it may become factor later IN
in the season, when the "spellbinders"
get up their steam and under full press
ure tell the country the fearful things
that will happen If their own particular
candidate should fail Of election.
General business conditions, as re-
ported by the commercial agencies COW
ering all parts of the country ara o.,