The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-11
FINANCIAL NEWS
AND COMMENT
Stocks Offer Resistance to I'm.
favorable Influences-Spe-
cialties Strong.
HUGE CASH GAIN BY BANKS
Surplus Reserve Increases $780,.
OOO,OO0-Gold Exports
Look More Likely.

Much the same Unresponsiveness to bad
news was exhibited by tho stock market
yesterday was shown at n lower level
Of prices In the last quarter of 1918 Pre-
sumably this testified to the continued
preservation of n strong technical posi-
ton. for there was no marked appearance
Of efforts to hold prices. Pressure from
quarters outside the professional trading
community was still lacking. Accordingly
tho market lent itself TO the conclusions
which hnvo been shaping for some time
Tint quoted values are now sustained
among other things by the very great
relaxation which was begun In the money
market with its promise OF Improvement
In investment demand and its portents Of
Success In the task OF new financing with
which corporations are confronted.
There can be no doubt also that hopes
are entertained OF some suspicious de-
veopments I'm politics. and the resumption
Of the Congressional session is looked for
ward TO with less apprehension now that
tho Administration has displayed sensi-
tiveness both TO the depression Of busi-
ness and TO the evidence which has been
furnished of n desire on the part of busi-
ness leaders 10 adjust enterprise to the
spirit OF public demands. The convic-
tion that the railroads must and accord
tncly will receive early permission TO
make freight rate advances enters into
the stock market situation. which Is fur
thermore based on the far reaching ex-
tent OF last years liquidation. The COM
tnercial difficulties which are being re-
ported are regarded only as evidence that
general business is undergoing the cor
receive processes to which finance has al
ready been subjected. They are looked
,..l AL
ing up is taking place In an era OF gen.
eral economic readjustment than as tokens
OF entrance upon n new period of great
difficulty provided that the influences OF
politics pass out of the destructive into
q constructive phase.
This may be the reason why some Of
yesterdays news, although deserving OF
the Wall street appellation OF bad" was
not reflected as such. Published outlines
OF antitrust bills shaping in Congress
under Administration auspices were con-
f1rmation of the view that more ANTITRUST
legislation is to be enacted but such leg
islation is expected to mark the extreme
OF political revolution for Il long time to
come. The announcement that the Gov
eminent had rejected an extravagantly
generous prefer OF settlement by the
American Sugar Refining Company In the
Hherman law proceedings which the Gov
eminent has been conducting was dis
appointing, but 1t was recognized that ex-
GtptlOndl CIRCUMSTANCES fnlGnt nave gov
erned in this matter. II was also the
belief that the company would fare bet
ter In the outcome OF the litigation than
II the Attorney-General had accepted Its
proposals.
The decision by the Massachusetts su-
preme Court refusing to authorize the
s67.5O0.o00 issue Of New Haven converti-
Bile bonds pointed to a somewhat extraor-
binary conception OF corporate finance
but as the decision was rendered on an
application made In behalf OF large
stockholding interest II was assumed that
the stockholders themselves would look
upon the status of their investment as
.u no way impaired There was a lot
Of inquiry about the provision 10 be made
for the s45.0o0,o00 of New Haven notes
maturing next May, but as the money
market Is moving II II now n reasonable
assumption that reIinancing and refund
ing operations will not be as formidable
as they looked a while ago to banking
ard curporate interests. The announce
won't of a French national railway loan
Was IA token of the inauguration OF the
financial campaign Of the year IN Paris.
which will. II is hoped. result In reliev-
ing the worlds capital market OF q great
deal of tension.
Apart from matters already referred to,
one Of the principal features OF the day 3
domestic news budget was the United
States steel Corporations report OF I'M
filed orders ON its books nj the begin
ming of the year This revealed n de-
crease during December OF 114289 tons,
a shrinkage which was not in limo with
other statistics that have pointed TO some
thing like an extensive slump In the
country's trade last month and was there
fore somewhat corroborative Of the con-
lecture in the steel trade lately that a
turn. Temporary or otherwise had been
made in the industrial tide.
The Financial Chronicles tabu1ation OF
bank clearinFs showed "A decrease OF per
cent. for the leading cities during the
week, but the reviews OF the commercial
agencies reported a better tone In many
lines of enterprise. Considering the char
acter ~ the more prominent items OF
marketwise news overnight the share list
acted well on fair volume OF trading.
Leading issues displayed underlying Arm
ness and some aggressiveness toward tho
close. while there were pronounced dem
onstrations Of strength In specialties led
by Texas oil. This stock rose so sharply
after the SUSTAINED advance which II has
been making as to suggest the probability
Of early disclosures which would account
for the movement. Tho United States
Steel tonnage figures had no market re-
Election and OF course the bank statement
did not appear until after the days trad
ing was over. The exhibit by the banks
was remarkable testimony to the rapidity
with which the banking situation has
been improving IN response TO the liQui-
dalton OF credits and tho release Of
cash from trade engagements In conse-
quence of tho depression of business
which has been accentuattng the normal
tendencies Of the season According 10
she actual figures there was a loan In
crease OF only $5,500.000. but there was
cash gain of over $4,000, 900. which was
we'll In excess Of the preliminary esti-
mates and result the surplus reserve
rose SEQ. 100000 to "A total of $4,000. 900.
or more than twioe the surplus at this
time last year and not far from the
amount reported in tho corresponding
week two years ago
Such n bank position al this helps TO
explain the break in interest rates dur
Ing the week. well as to account for
the strong upward course OF foreign
exchange. Demand sterling closed yes
terdny practically at <.s7, n gain OF al
most cents In the past fortnight, and
bringing gold exports nearer into view
unless. the Secretary of the Treasury
should proceed to withdraw Government
deposits from the banks, a measure which
would probably have the effect of post
poning a movement of gold out of the
country,
In the main tho principal features OF
the week have been alluded TO in the