New-York tribune., 1912-04-01
FINANCIAL MARKET
Wall Street BuiIish Over the Out.
Iook-Higher Money Rates
Expected.

Stock market prices have enjoyed
marked appreciation from the low points
recorded in February and from the low
level of 1911. In the last year stocks
sold at their worst In the last week IN
September, but since that time there has
been in the leading active railroad shares
an appreciation in money value of more
than S341 100000, and In the chief indus
trials gain OF 1866, 900 900. or a total
increase in the market worth Of the best
securities dealt in on the Stock Ex-
change Of more than S7O7, 100000. In
view of the long advance that has taken
place il is only natural to look for some
thing of reaction, indications of which
have been presented in the course Of
trading in recent days. Small operators
who seldom buy stocks when they are
cheap appear TO be buying on margin at
ruling prices, and their demand, of
course. is being filled by interests who
bought at much cheaper quotations. and
who expect to get their stock back at n
| level under that now current. Stock
the face Of political and labor uncertain
ties, but Wall Street has refused to be-
come alarmed over either politics or
labor. and 1t is looking forward to much
better quotations in 1912 than those
recorded in 1911, basing its expectations
on present signs of expansion In our in
dustries and another season Of good
crops.
Railroad earnings are improving. both
in gross and net. in most parts Of the
country, and at the moment the outlook
| favors a large increase in operating in
come in the current year. Statements so
far received for February show in most
| cases encouraging gains as compared
with the same time a year ago, notably
| in the case of the Hartman roads. Atch-
ison, Southern Railway and Erie, al
though the last named presents a loss
| in net The Erie's gross earnings in the
| last month increased more than s per
| cent. while net decreased Is per cent the
falling off in net being due to severe
| weather conditions that added TO oper-
| ating costs and to the policy of the man
| agement to improve its transportation
facilities. The company has its oper-
ating expenses we'll under control and if
| It had so desired 1t doubtless could have
shown an increase in net by reducing
maintenance and other expenses. The
results reported by the Union Pacific for
[ February were highly favorable Gross
earnings showed a gain Of $4,000, a
little more than 10 per cent, and net a
gain of $414,9OO. The Southern Pacific
likewise made good exhibit. officers
of the Hartman roads are enthusiastic
over the outlook for new business in the
territory served by their lines, and re-
ports received from the larger number Of
railroad officers throughout the country
encourage conservative optimism re-
garding the future of money and busi-
ness
| Efforts by bear traders to bring about
a material decline in stock market prices
on the strength of the announcement Of
a bond issue by the United States Steel
| Corporation have not been particularly
successful. A reaction in stock prices
doubtless is due. but the sale by the big
steel concern o. S3O,5OO.OO0 ) per cent
bonds secured by the best sort of secu-
rty is no reason for lower quotations.
! In view of the fact that the United
| States Steel Corporation heretofore has
spent enormous sums from net earnings
on extensions and improvements II IS
wholly warranted at this time in in
Creasing its capital for expenditures
which come under the head of expendi-
lures for capital account. At the close
of the last year the corporation had a
| cash balance of upward of S44ODD,OOO,
| and the directors have wisely decided TO
keep this intact Reports are received
from steel trade centres Of marked i'm
provement in the industry, both in the
volume of new orders and in prices.
| The Iron Age" says that specifications
for steel products are showing a con-
tinued increase and that the rate Of op-
Grafton among the Pittsburgh mills and
other manufacturing plants is steadily
| becoming higher 1t is estimated that
the production of all kinds Of iron and
steel In the last month has broken all
records. The copper market is strong
| and active, but producers are not anx-
| ious for a further advance in prices at
the present time. They are afraid of Il
runaway market, which would do more
| harm than good.
| A 6r,p1oy tep6ancy ic raport tad
| in the time money market, and as bank
reserves are not large, while demands for
accommodation are increasing, it is not
unlikely that higher rates for funds soon
will be recorded, especially If speculation
continues at its current volume. The
inquiry in the West and South is better
than recently reported, and throughout
the country the mercantile demand is
expanding. Merchants, as a rule are IN
good condition. but their shelves are
bare, and with the signs of more activity
on the part Of consumers they are max
| ing arrangements to replenish depleted
stocks and to call upon their banks for
accommodation. There is a larger
amount of commercial paper in the mar
| ket than reported at any time in recent
months. The coal strike in England has
caused serious hardship TO British manu-
facturers, railroads and the general pub
| lie, but cessation of work at the mines
| in this country is not expected to make
much difference in the general course OF
affairs here. The operators. in expecta-
| tion of a strike, have been mining coal
at a tremendous rate in the last year,
and supplies on hand. therefore, are
|