The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-07
FINANCIAL NEWS
AND COMMENT
Normal Looking Stock Market
Gold Deposited Here for
Bank Of France.
FOREIGN EXCHANGE FALLS

tanned yesterday on the scale OF Mondays
recovery from last weeks staEnation, but
the course Of prices was little reac.
tionary. Some OF the industrials, notably
Bethlehem steel. In which there seemed
to be some relatively excited speculation,
displayed advancing strength but the Gus
tomary leaders OF the list appeared TO he
for sale Moderate foreign liquidation
was again reported, and the continuation
Of local profit taking. together with the
reduction OF the short interest. served to
explain the comparative heaviness of
quoted values in the afternoon. At the
outset Of the session the market was more
or less depressed by the subway accident,
but only the weakness Of the marlborough
issues could be subsequently related to
this influence.
In one respect the dealings were en-
couragng. Tho market looked more nor
NAL than at any time since the reopening
Of the Stock Exchange. One would have
hardly inferred from it's aspect that there
were any such things as minimum prices
and possibly for this reason there was
rather noticeable renewal of argumenta-
tive agitation for a removal OF minimum
price restrictions. Not until this occurs
can the real reopening OF the Stock FIX
change be regarded as having taken place.
SO far as Stock Exchange policy Ia
understood It seems for the present 10 be
committed TO tho maintenance OF protec-
tive minimums on so-called International
securities but financial operations are
bound TO be hampered by artificial condi-
lions. II is pointed our that cotton estab-
lished It's own protective minimum level
through a decline which reduced the sup
ply for sale to nothing and brought in
heavy buying. as result OF which the
l.. A. 10, -.
est figures reached during the marketing
OF the previous record crop three years
ago. The analogy is not altogether exact
but the question OF minimum prices for
securities has not been laid on the wall
Street table by any means.
Bond transactions were In substantial
volume and the bond department was
steady. The tone of the investment de-
mand and the ease of the money market
In all directions. domestic and interna-
tional, are encouraging banking projects for
financing corporate requirements and i'm
portant undertakings are being arranged.
The Chicago. Milwaukee and St Paul
Railway is about to OFFER some $4,000
900 OF per cent. convertible bonds under
the general and refunding mortgage OF
1918. Stockholders will be permitted to
subscribe at par TO the issue. which has
been underwrttten by Kuhn. Loeb & Co.
and the National City Bank.
Preparations are making for Pennsyl-
vana Railroad financing to the extent
OF $40. 000. 900. the greater part Of which.
however. will be of purely refund
ing character The New York Fed
era Reserve Bank has bought $4,000, 900
Of New York city revenue warrants,
but II is explained that this Is no
sign OF permanent policy. The necessity
of doing some business Is chiefly 10 account
for the investments which the reserve in
situations are now making. but the law
which created them intended that certain
limited investment operations should be a
part of their business.
All around weakness in foreign ex-
change was the signal development OF the
financial day. Every important form Of
European remittance declined, both ster-
ling and francs going to new low levels.
Sterling exchange both for demand and
cables was quoted under 4.S5. with de-
mand bills under 4S4ia. Foreign ex-
change bankers are looking for unprece-
dentedly low rates in the ne;r future
and estimates OF a December export trade
balance of sli0,00O,0O0 help to explain
the outlook.
Curtaled imports with a further ex-
pansion OF exports for January are only
/ bearing out predictions made last au-
tumn that international finance was not
going to be a disturbing problem for
American bankers in 1915. Nobody be-
| ieves that we will be able to take ad-
vantage of abnormally low exchange to
| import gold. The price of the metal will
be marked up II necessary to protect for
egn bank holdings and the announce
4 ment made respecting the $4,000 500 gold
\ withdrawal from the Assay Office on
/ Monday is notice that our banking posi-
| tion and our money market situation
will enable us to sell gold rather than
to import II.
The deposit u $4,000, OOO in the First
National Bank to the credit of the Bank
OF France Is novelty in international
finance. Otherwise IL is an operation OF
the sort which was carried on year ago
when large aggregate of gold was
bought here by the Bank of France and
! exported, the purchases being at a pre-
MUM
II is reasonable conjecture that the
new transaction will be followed by others
and 1t is equally reasonable to suppose
that gold SO withdrawn from domestic
use in this country. even though deposited
here Will be carefully taken so as moi
TO provoke any disturbance OF our con-
ditions What use the Bank Of France in,
tends to make OF the metal so acquired
IL open to conjecture. but the action Of
the Bank OF England with respect Il
gold deposited at Ottawa could be easily
followed. In that case the Bank OF Franc,
would issue notes against the gold OF
count it as reserve against notes already
issued.
COincident with the further relaxation
OF the foreign exchanges. Wall Stree
money rates softened. The call loar
! accommodation renewed at 2h per cent
tho lowest figure established since IN,
start OF the European war. An encourag
ing variety of items of trade news wa
included In the days budget Conspicuou
In these advices were the announcement!
} OF railroad orders and Inquiries for equip
: ment and material. including the Pennsyl
vania and Baltimore and Ohio contracts
placed or under negotiation.