New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-17
WEEK REVIEW AND DIGEST
An EquivocaI Market-Forelgn
and Home Conditions.

A study Of the stock market for the
last week fails to reveal any logical rea-
son for it's action traceable TO either
money or business The week has shown
series of dull days trading. so thor
Oughly professional that on Tuesday and
Friday the bears succeeded in driving
prices down in the face Of general news
that on other days was used to send
prices up. The range Of recessions and
advances in the average up TO Friday
gave no Clew to the probable future ac-
ton of the market. and. barring seem
ingly strong undertone the attitude OF
the supporters of the market and those
inclined to lower levels indicated moth
ing but professional market forces. New
issues were listed which exhibited the
usual initial support. the chief Of which
was Guggenheim Exploration, which
stuck to a popular advance even in the
face of a decline on Friday ranging
from to points. A panoramic view Of
the situation, both abroad and at home,
reveals picture Of mixed reflections.
England has been threatened with labor
troubles which have kept that country
in a state OF apprehension and disturbed
the process Of complete recovery from
the effect of the coal strike. Belgium has
been near the boiling point OF internal
disruption, and the financial condition Of
Germany, which In the previous week
seemed to promise a decided betterment,
Is still unsettled, and the German gov
eminent has been seeking new loans In
the United States. This time the loans
are for thirty days. on a basis Of 5l2 bid.
This later borrowing. however. is only
a part Of the German bankers plan for
preparing TO meet the requirements Of
the coming half year financing. The
loans secured the last Of May for sixty
days were made to avoid paying higher
rates, which would have been inevitable
had they shown the real purpose for
which the loans were being made.
The reduction of the Imperial Bank Of
Germany's rate of discount from per
cent to "A per cent last week has had
doubtful effect. 1t was only reasonable
that the Imperial Bank should reduce its
discount rate following the rate reduc-
ton by the Bank OF England. and under
normal conditions in Germany the rate
probably would have been reduced some
weeks ago But the unusual state Of
finances in the German Empire has ac-
counted for the delay. and now that the
&c hat a h1a an
the minds Of leading financiers whether
the reduction was warranted and Will
prove to be beneficial. For more than
year Germany has been experiencing
financial irritations, and at times the
economic situation has been seriously
threatened. Since the breaking of cord
ial relations between Germany and the
French banking interests the financial
support of the former, according TO Ger
man interests. by the French bankers
has been withdrawn, and Germany has
taken a conservative attitude, as. mani
tested by the rigid position assumed by
the Reichsbank against all speculative
loans. Germany during the last ten
years has passed through a period of
most remarkable prosperity, and it is
only natural there should be some reac-
ton.
In the United States the week has
been productive OF considerable news
the crop report of the government, the
United States Steel Corporations report
of untitled tonnage. various railroad re-
ports and the adjournment of the Su-
preme Court without action on the an
thracite coal and the Union Pacific mer-
ger suits. Politics was a subject Of &C
tive discussion. and developed Wall Street
interest to the most acute stage of any
time since the question of selecting a
Republican Presidential nominee began
10 excite general comment. Reports from
business centres have been encouraging,
and fundamentally the country Is in a
stronger position, though slight draw
backs in certain commercial quarters
have been shown and will continue to be
during the process of complete recovery
from our long business depression. In
a general digest of pro and con factors
the situation presents a liberal balance
on the favorable side. Three things
alone indicate the basis Of improvement
encouraging crop outlook. money plen-
tiful, with credits improving, and an in
creasing export trade in American manu-
features. The security markets are
hesjtating and seem to be i'm state Of
equivocation. The professional element
Of the market during the week just
passed has exhibited changes which left
it and the public apparently in a condi-
zion similar to that Of ship at sea
without a rudder. Part of the time the
market was sold because a bull leader
was reported to be selling, and later be-
cause he was said TO be buying stocks,
and again encouragement was shown be-
cause he was reported TO be going to
Europe. Not an element has entered the
stock market during the week just ended
that could truly be construed TO be det-
rimental 10 the real value Of securities;
on the contrary, the trend Of develop
ments would seem to strengthen the real
investment position Of stocks and bonds.
GUARANTEED STOCKS.