New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-05
LONDON MARKET MORE
HOPEFUL THAN OTHERS
Prices Nevertheless Affected by
Persistent Selling on CONT
mental BOurSeS.
MONEY RATES HARDENING
1.-THE Statist" Thinks the Pres
ent an Uhrivalled Opportu-
nifty for Purchase of U. S.
Railroad Shares.
IBv cable TO The Tribune. !

Lon IN. May 1.-The stock markets
last " TX suffered from the depressing
influence of the present international
complications and from apprehension
arising from the repeated reports that
Austria intended taking independent
action against Montenegro. 1t is feared
that if Austria took military action
against such a small state a wave of
anger would sweep over the Slav coun-
tries and a race war of immense pro-
portions be precipitated, In spite OF any
action the various governments. might
take to avert 1t.
Under these circumstances the weak
ness of the markets is not surprising
London is the most hopeful Of all the
great centres, but even London could
not help being adversely affected by
the Continent, and on Saturday, when
local news Of labor troubles In Wales
and the United States added to the bad
effect of tho international situation.
profit taking on the slight rise OF Fri
day ended the week with a general
slump In all directions.
War rumors sent the open market
rate OF discount in Vienna on Wednes-
day to SIS per cent. which was within
IL Of the bank rate. The feeling in
Vienna and Budapest reacted In Ger
many. and the discount rate in Berlin
jumped TO Az per cent. In France there
was no movement Of rates, but the
open market rate In Paris is practical
~ the same as the bank rate, and.
when at this time of the year the Bank
of France, which so constantly consults
the interests OF the small trader and
agriculturist, keeps the discount rate
at 1 per cent, and the public, instead Of
grumbling, keeps the open market rate
at practically the same figure, this Is
a sufficient indication of anxiety in
France.
Rates in London hardened all around.
Call loans on Saturday opened at 3i2
per cent. but on small demand fell off
10 2% per cent. Weekly fixtures were
at 80 per cent, while two and three
months bills were at 3 1916. and four
and six months bills at 3b per cent.
The Bank of England lost 81. 1890
in gold. reducing the stock TO SlSS,S3o,-
600. The reserve fell S4,S35,O0O 10
S13G. 1JJ 900. and the proportion Of re-
serve to liabilities is slightly lower at
1872
The Statist." in an article on
american Railway Stocks; Should
They BE Bought" says:
"A good deal Of surprise has been felt
by investors in American railway Sc
curities at the severe fall in prices in
recent months, and. naturally, all sorts
Of reasons are given for the decline. AS
far as we are able to ascertain the real
cause of the fall has been mainly
the political and financial situa-
ton in Europe. American railway
securities are among the most attrac-
tive stocks to hold that exist anywhere
as they enjoy a very free market ana
are readily sold and bought In the
United States, in London and on the
Continent.
"Iu periods such as that through
which we have passed in recent
months they We're almost the only
stocks which could be realized on IN
large quantities without causing sefi-
GUS disturbance and trouble. In the
n,nnfhQ large
sums have had TO be found, not only
bv governments. but by individuals IN
Europe. and It has been unusually difii-
cult for governments and persons to
obtain the capital required. Conse-
ouently they resorted in many cases 10
the sale of securities for which there rs
q really free and big market. This is
nrovided by the market for American
railways
How much stock has been sent back
from Europe to the United States IL Is
difficult to calculate, but from the IN
formation we have obtained IT has
amounted to many million sterling. In
these circumstances it Is not surpris-
ing that the prices of American securi-
ties have fallen. II will be recognized
that such a time affords opportunity
for investors having money at their
command to obtain stocks below their
intrinsic values. OF course, II there Is
no Improvement in the political ana
financial situation in Europe. ana the
selling continues. prices may fall still
farther. On the other hand. If the po-
litical and financial situation improves
a marked recovery In prices VIII occur
as soon as the forced selling comes to
an end.
"As far as we are able to gauge the
position the political and financial Sit
uation Of Europe is now likely to snow
an Improvement. We are OF opinion
that advantage should be taken of the
present year and Of present conditions
10 invest in American railway secuii-
ties at the current low and deprecated