Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-01-14
Underione Of Stock Market.
Increases In Activity Since
First Of Year
In Spite Of Foreign Wars
America Has a Liberal
Credit Abroad
BY Henry Clews.

nary / the stock market has been
marking time, showing a distinctly
better undertone without any pro-
nounced increase in activity or
strength. Underlying conditions are
%|certainly more satisfactory than a
month ago, and there is ample reason
for greater confidence because the al"
ready familiar %unfavorable conditions
have been amply discounted by low
prices, and Improvement in the money
market must eventually have a stimu.
lating effect upon securieties. Funds
are now returning from the interior
quite freely. Crop demands have mod.
Grated. So, too, have the require
ments of legitimate trade, which is
showing the contraction usual at this
season. The January disbursements
were estimated at about SEAS. 900, 900.
AS yet these have not appeared in the
Investment market to any extent,
probably because Of the delay in new
offerings which are just appearing. 1t
has been known for some time past
that our railroads and industrial con-
Germs would make large new capital
applications, hut these have been held
back :Dendirg easier money conditions,
which have now returned. For this
reason the market is likely hereafter
to receive the support of big banking
interests who assume the responsible
ity for such Rotations. Baltimore &
Ohio has lead the way with a $64 .OO0,.
600 issue, q goodly portion of which
may be used for taking up short term
obligations. Further liberal issues
are expected within a few days.
The present ease of the local money
market has already had the effect of
starting gold exports. The tremen-
dous activity Of trade in Great Brit
ain-and also to a lesser degree in
Germany-has imposed a tremendous
upon the financial resources of
those countries for some time past.
In Europe the situation was aggrayat.
ed by excessive speculation. The Bal
kan war came at an u%nfavOrable mo-
ment and forced heavy liquidation in
the European financial centers. Hap
PLY The war is at an end, but the loss
which it imposed, estimated at be-
tween $3OO,0O0,O00 and $400, 900, 600,
aggravated the strain and a severe fl
nancial disturbance was only narrow.
ly averted. The strain at Vienna was
on to Berlin, and Berlin in
turn sought aid in Paris and London.
Unfortunately the great European
banks are not as strong as they should
ho Tho rocory,o ~ fbo poDL of L>ropno
being 100000 francs below a year
ago, while its note circulation is 49,. !
600, 900 francs larger. The tension in
Paris has been somewhat acute and !
evidently excites some concern. The
facu that the Government has been i
obliged to pay 81 per cent for Treas.
ury bills, compared with 1H per cent
not long ago emphasizes the situation
there. This explains the recent, ex-
ports of $2,00O,0 900 gold from New York
to Paris. the assumption being that
fully $lO,000,00O will be shipped before
this demand is satisfied. That we
should be shipping gold at this season
is somewhat unusual. In spite of the
Of $4,000, 900 or $4,000, 900 Am
ivan oCCulAlIco a. luc tiuAc VI tuc
Balkan outbreak, this country should
still have a nberal credit abroad, con-.
.ne large excess Of exports
over imports which continued through
1912. Thet unusual character of this
e Emphasizes two points.
First, the exceptional strain in Eur.
ope, and, second, our ability and read.
mess to give financial aid to Europe.
The Eank OF England rate remains un.
changed, loans having been reduced
$S4, O00, 900 this week and the reserve
increased $A5 400, 900. In all probab.
ility an advance in the bank rate
would have occurred had we insisted
upon importing gold a few weeks ago,
as was within our power. Once more
is depending upon New York
financial aid in time of stress.
Public attention has again been
Or e,ss diverted by doings at
Washington. The decision Of the Sill.
preme court regarding the distribution
If Union Pacific holdings Of Southern
Pacific had no seriously adverse effect.
The market, however, is still waiting
or the decision upon the famous Min.
rate case. Hearings have start
ID upon the tariff and thus far moth.
ng has happened to change the belief
hat no radical revision will be at
empted, at least at present. Some in
eresting testimony was presented at