The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-02
FINANCIAL NEWS
AND COMMENT
Firm Close in Stocks After a
Day Of Irregular Fluc-
tuatiOns.
STRENGTH SHOWN ABROAD
Favorable Possibilities Discern
ible in the Prospect
for Values.
STRENGTH SHOWN ABROAD

ststeIuay W oe represented ny the Dal-
ance struck between the persistence OF
bad news from railroad conditions. the
state of trade and the disturbance Of
politics on the one hand and the favorable
possibilities OF rate advances. crop PROS
poets and the Improvement Of investment
inquiry on the other. The stock market
continued to maintain the balance which
has been struck lately and there was no
surface change In its position.
Encouragement to advance was sup
piled over night by the London market.
British consols made a further rally OF
over a half point. Investment issues we're
generally strong and American shares
displayed firmness. II seemed clearer
that a spirit OF political compromise was
seeking to assert itself. and such Ndi-
cations could not fail to be hopefully re-
garded by British finance
The extraordinary ease OF money at the
outset of the second quarter was illus
trated by talk OF further lowering Of
the British bank rate. and the tendency
OF the securities markets both at home
and abroad Is undoubtedly to respond
TO the stimulating influence OF easy credit.
OF course this view takes no account of
the restraints which are imposed in other
directions, but II is such contrast OF
opposing forces which has been exhibited
in the inertia OF the stock markets so far
this. spring.
London's lead was not followed by Wall
Street. Indeed there was an early sell =
ing movement which carried prices of.
lnclinations to anticipate constructive de-
velopments such as the expected rate in
crease were offset by selling impulses pro-
yoked by the uncertainties with which
the railroad and business prospect IL at
tended. After the moderate activity OF
the forenoon the share list fuctuated ir
regularly, but there was squirt OF
strength toward the close and final prices
were about the best Of the session. small
average OF net gain resulting for the day.
The implications OF the market SO much
like all OF its predecessors OF the last
six weeks, were that II accumulation was
not going on there was nothing resem-
bling distribution. Under the circum-
stances surrounding values lately they
must have yielded TO any persistent pres
sure OF sales, however moderate. from
day to day.
The Rock Island collateral per cent.
bonds displayed renewed weakness. but In
most respects the features OF the securities
market were on the side of strength. The
copper metal were inc
most conspicuously firm issues among the
customary leaders. but more attention
was attracted by the sharpness OF rally
in the so-called Gould group OF railroad
stocks. The tokens Of IN. market were
I atched by outside indications more or
less corroboratve Of the reports that ne
gotiations were under way to place the
Missouri Pacific and allied properties on
a sound basis for the future.
President Wilson's Victory in the HOUSE
of Representatives in his effort TO procure
repeal OF the free tolls clause OF the
Panama Canal act was commented upon
as favorable event. Among other things
1t was spoken of as bound to enhance the
attractions OF American Investment oppor-
tunity in the eyes OF foreign finance.
For the rest the factor OF politics was
summed up in the signs that the Inter-
state Commerce Commission was pre-
pared to accelerat decision In the Eastern
rate case. The conviction that decision
must favor the railroads was stll further
strengthened by yesterdays railroad
news, one item of which was the default
on the underlying bonds OF The Pere
Marquette system. a default which might
have been avoided II the railroads had by
this time received permission to increase
their freight charges
Other news of kindred import was con-
talned in the returns of railroad earnings
for February. The most remarkable OF
all these was the statement for the New
York Central Lines showing a gross de-
crease OF S3,393.0Q0 and a net decrease
OF s3.435o00. The operating ratio OF the
New York Central system for February
was almost exactly the same as that OF
the Pennsylvania system. about SO per
cent. Such figures demonstrate the I'M
perative necessity OF the retrenchments
which the railroads have been making
and are an unbeatable argument for has
tening the action OF the Interstate Com
merce Commission.
Railroad conditions were described in
authoritative reviews as responsible for
Increased depression of the iron and steel
trade Steel prices were quoted as weak
ening. with new business back at the low
level OF last year. 1t was possible, how
ever, for the financial community to main
tain a degree Of fortitude under the test
OF such accounts OF the business situa-
tio1. because OF the belief that a great
change could be wrought for the better
II sufficient announcements were vouch-
safed soon.
In this respect IL IL worth noting that
there are pending matters which may be
helpful to values. The forthcoming crop
report Ia one OF these. Another II de-
noted by the expected announcements re-
gardng the organization OF the Federal
reserve banking system.
Still another is the Offering OF S65 900 =
600 OF New York city A.. per cent. fifty
year bonds. The change for the better
which has already taken place in the in
vestment market Is shown by the lower
rate OF interest on the proposed city is-
sue. compared with the Az per cent In
May last year The excellence OF tn. de-
mand for municipal obligations at the
present time points to the proba billy .of a
great