The Birmingham age-herald., 1913-07-27
NEW YORK MONEY
MARKET EASIER
Banks Willing to Put Out
Time Loans; Shorter Peri.
DDS to Ninety Days

New York. July 2s.-The action Of the
weeks stock market indicated the MAIN
tenance of increased confidence. This was
partly due to the further necessities Of
bearish traders. who persisted In putting
out fresh lines on advances. only to be
obliged to buy again as the rise proceeded.
Buying for foreign account was a feature
of the weeks events, an dthis had a sem
timental effect In Strengthening the mar
xet.
The declining tendency of discount rates
abroad, however, was arrested. The great
central fact was especially the Bank OF
France and the Imperial Bank of Ger
many, continued their policy of upbuild-
ing and conserving gold holdings, as
though in expectation of further strain.
Nevertheless, there was appreciable re>
Taxation of the New York money market
banks showing more willingness to put
out time loans the shorter periods up to 30
days. In consonance with this there was
Improvement in the bond market and some
notable price recoveries in low grade
bonds.
| On the other hand there were reminders
that the difficulties in the enlistment of
capital still remain. The announcement
of proposed large issue of New Haven
convertible bonds resulted in an abrupt
fall in price of the outstanding 6's to
the lowest price ever recorded. The stock
also receded to about its previous low
level. United States government bonds
broke into new low ground.
The special troubles which beset the
New Haven and the question of treatment
of outstanding government bonds In the
new currency law had some part In these
movements, but they were significant also
| of the general investment situation. The
analogy of foreign government bond prices
does not encourage a hope of prices at
par for United States bonds divested of
the circulation privilege. even with the
interest rate increased from to per
cent.
| The question of increase of wages to
eastern railroad trainmen possesses an in
terest to security holders beyond the I'M
mediate solution of the arbitration prob
| lem That an award will carry some
| increases is generally expected. There is
belief also t4at such an outcome might
help the contention of the railroads for
higher freight rates. Higher charges, 1t
is believed would not lessen the volume
of traffic. Much of the return would
find it's way back into increased outlay,
both for wages and upkeep. 1t is argued
also that the improvement of the rail-
roads credit would help the sale OF
bonds and the pushing of new enter
prises with an impulse to wide variety or
| industries.
Steel trading advices report a better
sentiment caused by the stock market
revival, but no marked activity among
buyers. orders for pig iron We're placed
at price concessions. Republic Steel's good
half year strengthened the promise for
United States Steels showing. Leading
producers of copper advanced prices, and
the strike in the Lake Superior mines was
taken as an advantage for the companies
not affected.
Possibility of ultimate good to corpora
tions having interests in Mexico was IN
scribed i'm the new policy outlined by the
government Impairment of the corn
crop was recognized from the hot wave,
but not enough to destroy hopes OF a
profitable harvest The growth of the
idle freight car surplus at this time in
contrast with last years decreasing ten
dency, marks the divergent course OF
trade activity this year from last.