The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-01
FINANCIAL NEWS
And COMMENT
Active and Strong Saturday
Session. with n Firm
Tone at Close.
SUPPORT FROM EUROPE
Confidence Returning Under
the Influence Of Cheap
Money.
SUPPORT FROM EUROPE


the market finished a week ago Last
Fridays session was strikingly similar to
the session on the Friday Immediately
previous and each ran into an active and
strong half session on Saturday. Deal
ings Yesterday we're on a relatively large
scale and only for n little while in the
second hour did the pace Of trading
>saUken. London had a remarkably strong
session for the week end, the buoyancy Of
the last few days continuing undiminshed
An influence abroad was the colossal extent
" the subscription reported for the Prus-
Sian Treasury warrants, OF which Vs.
500. 900 was offered to the public. This
Issue has a lottery feature attached affect
ing the amount of the interest return. but
demand Tor 1t owed less to This speculative
attraction than to the great rapidity with
which European confidence is being re-
covered on the assurances OF copious cas-,
In money that the political skies are cleaI
of war clouds.
Recovery Of confidence In this country
has been somewhat slower, but it is being
encouraged BY the European denuistra-
ton, although in most important financial
circles here there Is a feeling that the
restoration of confidence 10 In danger OF
being accomplished too rapidly for some
Of the actual conditions of the domestic
situation. However. in response to an
other advanced range for American stocks
abroad yesterday morning. the Wall
street community continued to vote conf
dence in the present level OF quoted
values. There was a renewal OF heavy
selling. which seemed to be OF an eN-
Gallant rhl,ftrtpr and under II nllCN OF
the early rise in stocks was lost, but be-
fore the end of the session the list
hardened again and closed aggresslvely
active and strong. Union Pacific was
one Of the influential features ON the
constructive side. The Rock Island shares
we're conspicuous for their exceptional
weakness OH reorganization rumors.
The bank statement was not sucn an
abnormal showing as had been made
lately. Loans Increased $23OO0oOU and
there was a cash gain OF about s9,5oo.0OO,
which was fairly close to preliminary esti-
mates An expansion of S3l,o00.0cV In
deposits raised reserve requirements SUI
nciently to keep the gain in surplus re-
serves down to less than $l.SVo,ooo. The
weeks stock market and the broadening
activity of dealers in investment securi-
ties furnished a sufficient explanation for
the loan expansion. but the loan account
failed To- show the results predicted a
the new State bonds and the payment
therefor.
European buying of stocks here, together
with the further fan of European dis
count rates. WAS about the most strlk
Ing financial feature of the last few days.
. The English bank rate. lowered for the
third time in January. went TO per cent.
and the Bank OF France was compelled to
reduce its rate from 4 per cent to ga
per cent All the European discounts are
now down from one half Of per cent. 10
per cent from the figures which were
maintained at the beginning of the year,
and convincing evidence has been FUR
nished that the worlds troubles on ac-
count of monetary tension have to that
extent come to an end. The week abroad
was marked by great return of In
vestors TO the securities markets and the
promotion Of new issues got quickly
under way IN reelection of the encourage =
men, provided by the impressive ease OF
the five point January rise in British con
soils. Having been relatively bare OF
American stocks and bonds for fully a
year Europe turned its attention to this
market, and 1t was estimated that fully
15o0O0 shares of stocks we're bought for
European account. Domestic support tc
the Wall Street share list seemed To Ian
guish in the first half OF the week, bu,
the European buying supplied a big stimu-
IuS 10 Il RENEWAL VI tlle ADVANCE, very
much TO the discontinue OF professional
traders who had sold the market for q
reaction.
Home news OF marketwise bearing wa.
Of mixed sort, Our foreign relation,
seemed TO hold out the possibilities OF
disturbing developments. The nature o.
trust legislation shown in the bills ac
tually introduced into Congress contrastet
rather sharply with the moderate ton,
of President Wilson's message which
heralded them. The Interstate Commerc,
Commission made ruling on the divi
sion of earnings on tap lines to industrial
plants. which was construed az indicating
probable postponement of decision IL
the Eastern rate case The country
bank clearings for the week increase,
about 10 per cent. the first gain in a lonl
time, but this was less on account of
turn In general business than because O
the revival OF financial activity at th
centre The commercial agencies reporte.
that business improvement was more sen
timental than actual, but this Is not tn
season Of the year for trade and ndustr.
to display much animation.
The foreign trade statement FOR De
cenber, with Its exhibit OF SlS3, ,OO
imports, the largest for any month IL
the country's history, testified to tn.
effect Ut tariff revision and qualified tn
eXuberance OF some expectations that re
CoNtTN III stHtTdl Prices WOulO lie AS cas-
~ the recovery of trade and industrial
volumes The United States Steel Cor
porations statement of earnings for tn
December quarter brought the aggregat
for 1913 up to a total which ranked Onl
below the earnings OF 1910. 1907 an
1906, but the speed with which bushes
contraction was going on as the yea
ended was shown by the earnings 70
December which were only a little NOR
than si,00o,0O0, At the same time ad
vanccs In wire and pipe among othe
basic lines suggest that new business
large enough To have some salutary effec
on commercial markets.
There was no special change in tn
local money market. but its tone In all de
partments was weak. Foreign exchang
declined to about 4S5A for demand steI
ling. but s2,0O0,O00 more gold was take
for export to France and It was evider
that gold exports would go on IN tn
coming week, The revival Of investmer
demand was most encouragingly Illus
trated 4 $4,000. 900 issue of A.. he
cent, bonds by the I.chigh Coal and Nav
CATION Company was, more than fou
times oyersubscribed and In one da
the price of the bonds rose points froI
the subscription level, About $3.50, 90
Of St, Paul general mortgage 4Hs. tn
same issue from which bonds were sol
slowly last summer at 99la, was taken Il