New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-29
REVIEW AND DIGEST
A Drifting Market, with Sound
Basic Conditions.


stock market is a question to which no
one who is willing seems TO be able 10
give an intelligent and satisfactory
answer. Theories have been ADVANCED
and so-called expert analyses given,
all of which will continue to be forth-
coming until the trend becomes de-
cideo in one direction or the other'
and then the II told you So VIII be on
hand to claim the medal. Many be-
lieve that the market is like an I'M
bridled colt ready to get out and rum
but without a rider and with no one
10 lead the colt to the track there can
no no race. on this line of reasoning
all that is necessary is simply for some
of the large interests to start energetic
bullish sentiment by openly supporting
the market. and prices will go bound
ing up. This assumption. In view OF
the present appearance of the general
undertone OF prices, would seem to be
correct. particularly with good crops
and other favorable prospects. How
ever. why is rot such leadership IN
evidence? 1t is generally accepted that
stock market movements usually cast
their shadows before them and dis
count future general conditions by
several months or longer. Is 1t that
the coming prosperous times, which
seem to be indicated by consensus OF
reports from all parts Of the United
States. will not arrive? Is there some
impending national or international
financial disturbance hanging threat
eningly over our heads. which holds the
market in check, or is It the policy OF
the controlling market interests to keep
movements so we'll In hand that they
may be turned in either direction to
correspondingly influence the swing OF
political sentiment? In this country
there are few clouds in the commercial
sky, and the wheels Of industry are
running at greater speed, consuming
larger number Of hours and requiring
increased thousands Of employees to
supply the demands for the products
Of our mills and factories. In the steel
ard iron trade sufficient help cannot
be secured to allow the companies to
specify deliveries. The range OF man
ufacturing lines reflect n decided bet
torment. and with promised crops ex-
ceeding all past harvests In the United
states. with money sufficient 10 move
these crops. and with credits cleared 10
basis of fundamental soundness
through a process of several years re-
adjustment, It would seem that our
pathway Is clear TO period OF pros
perity which should naturally result In
the heaviest commerce, industry and
financial undertakings in the history of
this republic. New financing. which
has usually been accepted as fore
runner OF good markets and Investment
buying, has been very extensive this
year Evidences OF confidence in de-
velopment Of the earning power OF cor
porationS have been shown by some
increased dividends, and increasing Of
capital stock issues. The most con-
spicuous of such announcements re-
Gently were those OF the General Flee
trio Company and the corporation Of
the United Cigar Stores last week. An
increase from $50 900 900 TO s105000, 900
| in the General Electric means large
| business and gross earnings In the fut-
ure to provide dividends for stockhold-
d. he f,,tnrn nitf1n0lx rr N c
such responsibilities, or institutions
like the General Electric would not
| assume them. The United Cigar Stores
disqualification and stock distribution
was an evidence Of business success
and confidence, and this tone Is shown
in commerce and industry everywhere.
The gradual hardening Of money
rates, owing to the large volume OF
| commercial paper which has been
growing for several months, Is ever a
sign Of mercantile and Industrial activ-
ity In the investment field, however.
there is little demand. During the
| week Just ended bond houses report
they have done comparatively nothing.
and the interest ordinarily evlnced by
injuries from customers has shown a
remarkable falling of. In the foreign
trade the situation is encouraging.
England for the half year closed the
largest export trade ever experienced,
and this in the face of strikes and
other troubles. French industries are
increasing also. Russia has been max
ing rapid strides and regaining lost re-
sources. In fact, as q whole. the trade
conditions abroad are promising But
the investment situation In Europe,
particularly In England and Germany,
Is not cheerful, and the movements Of
the foreign stock markets are affected
as the course of investment buying Is
changed. British Consols have been
heavy and have shown slight rallying
powers. Aside from every other rea-
son, the fact that they are only "a
per cent security In a period OF fnanc-
ing when the demand Is for higher in
terest yield would account for some
of their decline That > per cent Of
ferings such as those recently brought
out-the Brazilian Railway. the Val
paraiso Water Works and the Gillian
Northern Railway were absorbed
easily by foreign investors proves that
the foreign public, as well as Am ,rican
investors, are seeking good securities
affording higher incomes. The possible