New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-26
WEEK in FINANCE
HERE And ABROAD
Check to Upward Rush of
Stocks, but Reaction Is
Only Moderate.
CONFIDENCE SHAKEN
BY ROCK ISLAND
Europe's Selling Here Slackens'
but Sterling Rates Are Low
Bank Surplus Higher.

After three more million-share days
Stock Exchange trading Quoted last
week. but the long expected reaction in
prices was only Of moderate extent.
Representative railroad stocks made an
average loss Of about a point. while
in4us.ri-ls were little changed. In the
long continued advance since March Is
gains had been made of around 9 points
By railroads and u by industrlalS.
Bonds on the floor Of the exchange
were dealt in 20 the amount OF S5Z,-
OO0. 900. over $10000O00 more than the
week before. Business in speculative
and convert bic issues accounted for
much OF the increase, but bond houses
were cleaned out Of a number OF ne"
issues.
Possibly buvinc Of stocks would have
slackened without the blow Of the Rock
Island rcceiyership. Lending institu-
tions were discriminating against war
stocks that had been so wildly ad-
vanced, and no further news of con
tracts came 20 kindlc speculative IN
agination. Profit taking and short sell
ing had become heavy, and when buy
ing fell off prices went lower.
First announcement on Tuesday that
the great Rock Island system had been
throSn into the courts was met with
determined buying. In the following
sessions, however. securities OF roads
whose future seemed none too well as
sured were under pressure. General
trading on the exchange was much re-
duced after Wednesday.
Rock Island Credit Deprecated.
Coming at the end Of the untangling
Of the structure of holding companies
that had broken down the Rock Islands
credit, news of the receivershlp not un-
naturally met with some suspicion. The
road serves prosperous territory, ana
its latest earnings have been excellent.
In spite Of this. the present manage
rnent found that Its credit has so de
preciated that II was impossible TO
obtain funds 10 meet pressing lmmedl-
ate needs.
A. worst a receivership need not be
so long drawn out as seemed necessary
two or three months ago. The uneN-
pected appetite for securities shown IN
the great rush to the stock market has
convinced bankers that reorganization
can be effected with aid OF pubic DIS
tribution Of new issues.
With all the talk OF war orders, our
exports are not creating the great trade
balances they did few weeks ago
For the week ended April l. the eN-
cess over imports at the principal
customs districts was under Sl3.OJO.-
600. where early in the month before IT
ran from S250O0000 10 S4IOOOOOO.
Corrected statistics for March give an
eyport excess Of not quite Sl4l ,OOO,-
900. which. while not up 10 the records
set in earlier months Of the year is
yet one Of the greatest tins country
has ever seen.
As 10 the amount Of our securities
That has been sold back 10 us estl-
mates vary, and after all are not
particularly trustworthy. 1t is at
least certain that i'm the great rise OF
prices In our stock market we bought
immense amounts Of European hold
ings. Cable dispatches from London
nov report that the speculative posi-
ton m most American stocks traded
i'm there had been liquidated and that
necessitous selling is at an end.
In spite Of reports OF this large
movement of securities back 20 our
hands. sterling exchange still shows
decided weakness. In the latter part
Of the week checks on London sold at
under 81 70 for sovereign. for the
first time since the French loan mere
was definitely spoken OF.
British Loan Here Put OF.
The british governments attempt 10
govern the course Of sterling exchange
here through decreasing the artificial
ease of money IN London has so far
been unsuccessful, discounts in the
British market failing 20 retain the
frmness of the week before Then
they had riser when the Treasury be-
gan to sell bills daily at liked rates,
but this week three months discounts
were under per cent. II appeared
that. pending the result Of this expert
meat. the regulations for sale Of Brit
ish government issues IN this country
had been suspended.