New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-02
Labor Holiday
All Nerp York Exchanges
Closed.
REVIEW AND DIGEST
Uncertain Market - Higher
Money-Better Trade
Conditions.

the STOCK market uuIlils lhc "So" J"''
ended must be speculative, as the
course of the market indicated nothing
except uncertainty. Impulses were
spasmodic and prices were so irregu-
lar that neither the specialties nor the
rails could be given the credit or
leadership. It was week unusually
attended with certain influences as
couragine TO a buoysnt market when
even with all other factors being IA
vorable must have had retardinS
effect on higher levels. Aside from the
incidental sentimentalism caused by
rumors OF the Kaiser's I'll health the
Panama Canal controversy, the NC
araguan trouble and the cohtihueu
unsettled condition Of the Mexican us
.,rhonca there were such important
ouestions as the money situation anu
crop conditions. The money outiooN
has been brought into active olscussio'
for saverel weeks, but each time any
serious aspect has been suggested ]"
has been met with optimistic inter-
views with leading financiers. VINO nave
eased the public mind by assuring US
that ONLY moderately harder rates
would prevail to meet general traue
and industrial expansion ana the nai
vestins requirements. The raising OIL
Tho discount rate by the Bank or Eng
land on Thursday from 3 per cent TO
per cent may or may not lorecaS'
q coming strenuous period In the
r,onev market. Sometimes II - the
unexpected that happens, ana l .
nossible that beneath the surface ho'
even apparent 10 the Keen percepIio"
80 O majority of the banking interests
there is a sore spot in European ana
Continental economic CONDITIONS "h'o"
will develop later and require ngn'-
.n,rg Of the worlds money strings 10
;nsure its removal But II is not
Thought probable that any alarming
money stringency will develop though
II will be some time before the lor-
eisn money markets will regain a nor
mol condition. London will be called
unon 10 furnish considerable money 10
Egvpt for crop purposes, and other
calls will be made on her banking re-
sources from other countries. possibly
including the United States. To pro
vide for all requirements and TO ailo"
q healthy circulation OF exchange are
natural reasons why the Bank OF Eng
land deemed II advisable TO take ac-
tion at this time. The universal re-
vival OF commerce and industry IS
drawing on tho reserve funds OF imam
cial institutions. and as trade devel-
opment is so much greater than even
the most pronounced optimists or the
world had prophesied, it Is possible
that there has been overconfdence N
the financial powers TO meet all de-
mands without causing any money
strain. The action Of the Bank OF Eng
land in raising its rate TO per cent
was somewhat unexpected. That the
rate would be raised was certain, but
u per cent would have been natural
increase, especially in August. the
raising Of the Bank Of England rate
met a response in an advance OF the
call rate in New York. but whether
any extensive liquidation will follow
can better be told later. Time money
rates have been displaying tendency
to harden for some time, but the call
rate has remained very easy. The con-
tinued loss in cash Of the New York
banks to the Sub-Treasury and the
shipments Of gold to Canada may
cause liquidation which will materi-
ally affect stock market prices. Gen
eral business conditions show broader
Improvement, and the effects Of this
improvement are beginning to tell In
the reported current gross and net
earnings Of industrials and railroads.
So prosperous are some Of the corpora
tons that increased dividends in some
cases and renewals and initial divi-
bends in others are common subjects OF
conversation in Wall Street. The vot-
ing by the board of directors of the
Louisville g. Nashville Railroad, sub
feet to stockholders approval, Of ST.
100000 in stock to stockholders at par
and the General Electric stockholders
ratification Of directors proposition to
increase the capital Of the company
and distribute a bonus Of thirty dol
lars q share in stock to stockholders,
were events of interest. The reported
railway earnings during the week gave
evidence of a returning prosperity to
the railroads. which should be impress
sive. The July earnings of both Union
and Southern Pacific showed encour-
aging gains over the same period in
1911, and other Western railroad earn
ings are showing a decided better
ment. Politics seems TO offer less Of
an obstacle to business Improvement
each week, and there is a concerted
tone of cheerful expectancy, which
sooner or later must show an appreci-
ably favorable influence on the invest