The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-05
FINANCIAL NEWS
AND COMMENT
Exchange Business in Both
Bonds and Stocks Is on q
Rising Scale.
LOWER RATES FOR MONEY

Sentiment in Wall Street has become
Increasingly cheerful this week, encour-
aged by the indications OF the money
market and the organized securities mar
ket as &, eviuces the disposition OF inves-
tors Yesterdays Developments along the
same line only tended to promote better
feeling. Despite the handicaps under
which business IN bonds and stocks is
being done the striking feature OF the
dealings has been the growing volume
Of transactions.
Apparently 80 600 shares OF stock or
more a day have been bought and sold
this week through the Stock Exchange
Clearing House. and although this ag-
cregate would be regarded as ridculously
small under ordinary market conditions
It Is one of the indications Of public at
titude which prUVokes optimism. Trad
ing in bonds on the exchange floor more
closely approXimates normal volumes IN
duh times but the interesting fact is
here that the amount Of business In bonds
shows = distinct tendency TO increase.
transactions Yesterday were the largest
since the bond department was opened
under the new regulations.
Furthermore. the trend OF investment
and speculative opinion Is suggested both
in bonds and stocks by the resistance
offered TO such selling pressure as is
manifested from time to time. II is a
very reasonable Inference that If some
distinct stimulus TO confidence were inn
parted the share list at least would show
a good deal OF rising strength in response
to the favorable aspects OF the money
market.
The financial Interpretation placed on
the appearance OF the securities market
IS implied by the impulse which II has
H.. - afu
for new corporate financing or retnancing.
BY way of contrast with the Views which
prevailed less than fortnight ago II
might I've pointed out that Wall Street is
almost inclined to- dismiss approximations
that there is likely 10 be foreign liquida-
ton OF securities here except by gradual
processes adjusted to the capacities Of
the market and the circumstances Of the
international monetary situation.
Gable reports OF conferences at London
participated in 10y American bankers con-
corning the general reopening of ,hs stock
exchanges attracted wide attention. 1t Is
believed that q satisfactory understand
ing has been Effected or is in the way %
being reached which will assure more or
less complete stock market resumption
soon. although 1t would not be surpris-
ing If the restoration Of the open market
here was limited until the Interstate Com
merce Commission renders its decision in
the Eastern rate case.
On the known movements OF MONEY
the local banks have lost IN the neigh
borhood of $4,000. 600 cash this week.
Thi. IL largely accounted for by emergency
currency retirement and revenue paw
inents 10 the Government including war
taxes. Cash changes are not now how
ever, matter Of much conc IN. with the
Federal reserve banks practically able to
do little business because the general
banking position IL one Of uuprcC dented
capacity 20 accommodate borrowing re-
Quirements.
The fan In the rates for credit continues
and is expected TO reach new low Levels
next week. Call money loaned yesterday
at 81. per cent. and IL WAS impossible TO
place all the time money which was offer
ing a per cent. TO borrowers OH col
lateral security for all periods from three
so six months even though lenders were
willing 10 take half railroad and half in
dustrial collateral. Acceptances were
marketed at 81 per cent. Tor March
The International money market was
also easier The issue OF the call for the
eleventh and last ins;alment this year on
the New York city loan account amount
ing to about slO,7o0,o00 was foil wed by
another reaction IN sterling exchange
which IL now lower than In fortnight
Francs We're easier too ana there was no
further strengthening OF marks. Export
bills were 4 fIC'or in the movement ~ eX-
change, and Il * worth recording that the
weeks shipments Of wheat, uggregating
almost 10000 00U bushels, were the second
largest on record.