The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-17
FINANCIAL NEWS
AND COMMENT
Important Agreements Reached
in the International Bank
ing Field.
THE STOCK MARKET FIRM

Not much was expected OF the stock
market yesterday. but the session was
far from stagnaut. and although the
movement OF prices was Irregular. the
list lost none OF It's tone Of strength
Advancing tendencies continued 10 be dis
played under indus rial leadership. The
most important piece Of financial news
was the announcement OF the appointment
OF j. +. Morgan & Co to be the CONNER
cial representative OF the British Govern
ment here. II seemed TO be indicated
that this arrangement was certainly not
disassoc!ated from the agreement reached
between American aud British bankers
TO regulate the international flow OF gold.
for the purposes OF which the establish
ment OF British credits here would be
highly useful The bank statement
showed an Increase Of more than Slj,-
100000 in surplus reserve with only a
moderate ioan expansion.
Wall Street gave a rather good ac-
count of itself in the stock market all
through the week and the closing ses-
zion in no way altered the implications
Of previous days Apparently the share
list had TO absorb profit taking sales and
some foreign liquidation early in the week,
but at no time was the markets capacity
overtaXed. The supply Of securities from
domestic sources Is very scanty and for
Gig selling has been so moderate that
any small buying movement has a ten
dency TO cause sharp advances
Investment purchases have been made
among what are called standard shares,
but speculation and some investment has
been going on in issues outside the IN
Sensational LIST and especially in the in
dustrisl quarter. International stocks
have been apparently more or less under
the influence OF apprehended rather than
actual selling from abroad. Reactions
generally have been slight and after an
Interval of diminishing dealings In the
mldUsek the market displayed renewed
signs OF animation with an upward trend.
At all times the demand for bonds OF
good grade has been strong and invest
ment dealers have been encouraged to in
crease their line for larger distribution
later on.
The cheapness OF money has been a
cumulative factor IN the securities market
and has emphasized the reasons for op-
timism which are furnished by the adj
Na.tag>ous economic position I'm which
The country Is being placed by the Euro
peal war. our foreign trade Is making
ar export balance at the rate OF double
sry balance which ever accrued In any
year In the past, and as result the for
cign exchange market has worked into a
situation which solves the problem OF any
probable foreign liquidation OF our securi-
ties in the near future. The domestic
money market. which was quoted last
week at the lowest rate since the out
break OF the war. helps to solve the
problem OF corporate financing when
taken in cOaGection with the increasing
strength Of the investment demand.
An interesting overnight development.
OF which Wall Stree; took prompt notice
yesterday. bore ON some OF the foreign eX-
change features OF the week TIE novelty
OF gold imports from Chua reported a
few days ago, the disclosure Of gold ship
ments from Japan 10 this country and
London reports OF arrangements for more
small exports to New York all emphasized
the contro' which our bankers are acquir-
ing over tia foreign exchanges. 4: tie
same time the news that an agreement
had been effected between New York and
London which will prevent any interns-
tlonal gold movements In unreasonable
amounts points TO the direction in which
exchange operations will tend.
This is the direction indicated by the
arrangement to furnish Russia with a
credit OF $4,000. 900 now and more later
on. The fortunes OF war have given US
command OF international finance. but we
will have 10 use This command for the
benefit Of other nations by supplying them
with banking accommodation and with
actual capital, but OF course this will be
beneficial TO ourselves in the stimulus re-
sultng to domestic trade and industry
from the foreign purchases OF our goods
and commodities.
The week as a whole was one OF in
teres,ing events. The Italian earthquake.
while II makes siclen.ng addition to
the European tragedy, can hardly be con-
eidered as a factor in the financial reck-
oning. The British piotest against the
embargo laid by one OF the Mexican fac
lions against the exports of oil from
Mexican telds under British ownership
has given Washington something new to
think about and may be a foil to Wash
ingtons protest against British intcrfer-
once with neutral commerce. For the rest
the principal feature of foreign advices
OF most significance to Wall Street was
tho rising tendency Of American securi
ties in the London market
Bank clearlngs. are showing smaller
decreases in comparison with year ago
than was the case only a few weeks
since. This is probably more the con-
sequence OF greater financial activity than
Of general business Improvement but
there are signs of better conditions IN
trade and industry. Competent opinion
n that steel has turned the corner and
copper is displaying sustained strength.
Tie dissolution Of the Copper Producers
Association should conduce to still
fiTmer market for the meal The decla-
ration OF the Baltimore and Ohio dividend
al reduced rate was still at "a higher
rate than had been expected and was
vote of confidence in the prospect for
general business recovery!
Cotton displayed more than underly
ing hrmness, but the striking phenomenon
Of the commodity markets has been the
enormous export buying Of wheat and
other grains. Wheat has been carried into
the vicinity of $3.50 "A hushel and corn
prices have begun to gain sharply. and
the state Of the grain market has at
last provoked concern over the prospcc-
tive domestic supply of fOOdstuffs