New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-23
REVIEW AND DIGEST
Better Market Tone in Early
Days of Week.
TRADE OUTLOOK MIXED
European Sentiment and Money
Affairs on Continent-Ger-
many's Demand for Funds.

many's Demand for Funds.
Signs which usually indicate a rising
stock market were in evidence during
the first three days of last week, and 20
many indications pointed to the passing
of the overwhelming bear influence and
the beginning Of a temporary reign. at
least, of bullish supremacy. The osten-
sible ending of the bear campaign.
which had continued for many months.
was in the old-fashioned way and
marked by heavy declines forced liqui-
dation emphasizing an oversold condi-
ton Of the stock market.
If stocks possess any value based on
earning power they have reached
period when TO investors they offer
most attractive yields. On the average
both rails and industrials were lower on
Monday than they had been in years,
ranging from per cent TO an per
cent basis in income, and unless the
country was destined to plunge into
panic, stocks then seemed TO have
reached the level when the turn must
start in the other direction. There is
no guarantee to be obtained that re-
action started on Thursday may not
follow the improvement experienced
during the early part Of the week and
that stocks may not sell as low as or
lower than they did prior to the initial
recoveries, but based on international
developments and the exhibited tenn
permanent of professional operators on
the long side there seems to be reason
10 look for a somewhat steadier tone to
prevail among the standard issues.
The future is uncertain and the trend
may be either way, according 10 de-
velopments in affairs at present not
defined.
Gradually elements which have been
hanging over the stock market have
been disappearing, and on Monday last
the Supreme Court handed down
further decisions in the railroad rate
cases which took the Monday uncer-
tainty regarding such decisions from
Washington out of the way for the sea-
son, if not longer. The Union Pacific
Southern Pacific dissolution plan is still
awaiting a final settlement. SO intense
has the feeling become between the in
terests involved in the settlement Of
this dissolution that Judge Lovett,
chairman of the Union Pacific board,
felt it incumbent upon himself TO issue
statement on Tuesday duplicating
certain unnamed persons in attempts
to extort money for the purpose Of in
surfing a clearing away of all obstacles
and an early agreement by the parties
concerned.
Whether the tangle will be unravelled
by July l, the time limit set by the
court for a full adjustment Of all dis
putes, is a question that cannot now be
answered, as there seems to be dis
position on the part Of Southern Pacific
officials to oppose any movement which
will plan the taking away of the Cen
trail Pacific holdings Of the Southern
Pacific or the removal of the Central
Pacific control from the State of Cali
fornia. However. men and affairs
sometimes move very rapidly and much
may be accomplished before the end Of
this month, ard the segregation of the
Hartman lines may be fully completed
by that time. The most important
issue decided on Saturday as affecting
the railroads was the refusal to grant
the per cent increase in rates asked
for by the Eastern lines. II this had
been granted the market for this class
of securities probably would be slim
ulated, but If the railroads are not af-
forded the relief desired in the future
the outlook is not encouraging, in view
of the falling off in net earnings re-
| ported. The commission, however.
/ after an investigation may conclude to
readjust freight rates in favor Of the
! railroads.
! The principal event Of the week was
the publication Of the proposed banking
and currency bill under the sponsorship
| of Secretary McAdoo and Chairman
| Glass Of the House Committee on Bank
ing and Currency. In some respects
the bill is entitled to great credit. but
these distinct features OF merit are not
new and were embodied in the so-called
Aldrich plan, the emergency provision
of which is still in force and will not
expire until 1914. II would be mani
testify unfair TO critcise a measure
severely that has not been given a trial,
as this country needs some relief and
any plan must be put into operation To-
discover its strong and weak points.
II the government were a business in
stitutIon, as 1t should be, and not mere
~ q political football, the proposed
Capitalization of banking power in the
federal government probably would be
a wise departure from our present cur
rency routine.
But there is studied avoidance of
depending on the skilled bankers of
the country for advice in the framing
of the present bill in making up the
boards OF the several federal reserve
banks and the federal reserve board.