The Birmingham age-herald., 1913-06-29
MARKETFREE
FROM PRESSURE
No Great Enthusiasm Mani
fest on the Buying
Side

New York, June 2s.-Signs were not
lacking through the week of feeling of
reinsurance over the nearer financial
prospect, while complete confidence over
the future is lacking yet. For this reason
the weeks market was free from pres
sure, while no great enthusiasm was
manifested on the buying side. Specula-
ton came almost to a halt, after a mod
the week.
The near approach of the July settle
ment period enabled formation of defi-
mite conclusions that adequate prepara-
tions had been completed to meet the
dreaded requirements of this period The
stress of the position centered especially
in Berlin, owing to the well known de-
pcndency of German enterprise on for
eign capital and the equally well known
obstacles in recent months to it's use in
Germany. With the July engagements
met, a period of temporary relaxation
of money markets is quite likely to fol-
low 1t is this promised relief that the
weeks stock markets reflected. How Ions
this relief will last remains a subject
of doubt, and this still constitutes the
underlying constraint on securities mar
kets.
Money on call in New York loaned as
low as one per cent during the week, but
the firm rates for time loans on collateral
and the scanty demand for commercial
paper, en- which G per cent was the ru
ing rate, showed the real scarcity OF
available funds.
Trade reaction is suggested as a prob
able means of relief from money strain,
especially in Germany. Such relief from
immediate borrowing demands on banks
must carry with it diminished profits of
or, tar ftIrtl Inn a nj q
credit. the damage to which already is
alleged to lie at the root of the difficulty
of enlistng capital. Railroad authori-
ties urge this argument strongly in pur-
suing their claims for increased freight
rates The market shows its sensitive
ness to the subject in its quick response
to first impressions of the intertate
commerce commissions attitude toward
it..
j. P. Morgan phrased the opinion in
these words to the New York public serv-
ice commission: 1T is not a matter
of security so much as of available
money. The money just isn't available
for the needs now Bankers, therefore.
look forward with some anxiety to the
need for money to move the crops. The
usual recourse by narrowing abroad with
be sought, but the response is not certain
ly known. Passage of the new currency
bill at least in time for the seasons needs,
is not expected, without counting differ
ence Of banking opinion over the effects
to follow the law.
The coming assurance of judicial ratif-
cation of the Union Pacific plan for dis
solution removes factor that had threat
ened a heavy burden on the market ever
since the original plan failed. The trus-
teeing of the Southern Pacific stock in
sures against forcing in on a weak mar
ket
Speculative sentiment also was favor
ably affected by the inference of liberal
ity in the administrations approval of the
exchange of Southern Pacific for Balti-
more and Ohio stock with the Pennsyl-
vapia railroad
Steel and copper news gave no intima
tion of the expected revival of demand
Addition TO the freight ear surplus for
the first half of June was large enough
10 strengthen the belief in decline in traf-
fic. Rains in the corn belt relieved some
anxiety but fears of damage to spring
!, wheat were manifested.