New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-01-24
REVIEW OF THE
FINANCIAL WEEK
Security Markets Still
Lack Sustaining Buying
from Outside.
u. S. STEEL DIVIDEND
ACTION AWAITED
Congestion Of Idle Funds Here
and Observation-Disclosures
Ease Countrywide.

velopments received more than their
share OF credenco. Prices gave way
easier under short selling and hesits-
ton presented some indication OF be-
ing replaced by reaction. British sell
Ing Of our stocks and bonds was not
apparent in any unusual volume, but
the international list OF stocks was
sill held IN check by fear OF an an
usual supply from London. a specu-
lative upturn on Friday. however. left
railroads and industrisls little changed
on the week.
The active speculative industrisl'
suffered from lack OF standard on
which their value could be Judged.
When seasoned issues fall. as they
reach lower levels they appeal TO more
buyer. who consider that they are be-
Ing offered chances TO buy az bargain
prices When reaction comes In stocks
that have not proved their worth buy
ers are apt 10 be fewer. There is lack
ing knowledge or which 10 estimate
The return they offer or their expecta-
tion Of recovery.
From something like this disedvsn-
tage the war stocks are suffering.
They rose last year as news Of i'm
meuse war orders and government re-
ports of unprecedented exports gave
promise Of an unusual prosperity. IN
which II was only natural that many
should wish 20 share. Now new Euro
pean contracts. iu spite OF ingenious y
circulated rumors 10 the contrary. are
comparatively few. he Allies are
manufacturing d good share of their
war supplies, and purchases here are
being made without the haste of last
year. Il may be that the immense
scale Of warfare will call heavily
again on our resources as well as Eu-
ropes, but as ye, this has not been
clearly shown, IN spite Of Premier As
Qutl's appeal for greater speed IN
making supplies.
So far as contracts already placed
are concerned. il Is felt that by now
results are TO be expected. Reports Of
earnings and dividend disbursements
are awaited TO show how well last sum-
mer's hopes are TO be realized Beth
lehem Stecls dividend Of $50 for this
year. large a. il was for AN initial pay
ment TO stockholders was disappOint-
ment 20 many. If that concern, pal
.!c~laT.y We qualified fo- mention
work and unquestlonably M receipt Of
immense orders. justified rise 20 $500
a share with $50 disbursement. what
IN proportion should be expected Of
other issues? To many Of these whose
market value had so increased from
levels prevailing before the war 10 is
uncertain how much business had been
obtained from abroad or how we'll the
contracts are being carried out.
Question of Steel Dividend.
The quarterly meeting of the United
States Steel Corporation. always Of
great market interest. was awaited last
week with more than usual concern.
This great corporation both because Of
its size and because OF the unusual de
gree 70 which the public is admitted
into knowledge Of It's affairs. gives the
keynote TO popular opinion % the state
% American industry. There has
arisen doubt as to the permanence Of
what benefit has actually been derived
from foreign business. The published
statement By the chairman Of the Steel
Corporation at the beginning Of the
month, with its warning OF keen for
( eign competition when peace comes and
suggestion that this might not be far
or, makes dividend action at this
weeks directors meeting unusually
sgniicsnt.
Discussion has centred on the cues
ton Of disbursement 20 common stock
holders, rather than on earnings for
the last quarter. The operation Of
/ steel mills 81 capacity and continued
large additions TO untitled orders
should mean remarkable rate Of
profit. A year ago, after the poor re-
suits Of the last three months Of 1914,
the worst in the corporations history,
dividends on the common stock we're
omitted. There has been no question
that earnings this time will Justify re-
sumption Of dividends - the rate paid
before the war, If prospects for con
tnued prosperity seem bright.
Those who argued from the 10 per
| cent increase granted 10 the corpora
tion's unsklled workers held that such
an addition 10 labor's snare OF the
proceeds would not have been granted
unless the directors had foreseen pres
ent conditions maintained for q rea-
sonabe time. Prices for finished steel
II was pointed out, were still advanc-
Ing, and would figure moro IL business
done is the year went on and specii-
cations were made on new contracts.
Orders that would occupy the plants
Of the company well through the year
were called on as evidence tina. bust
ness H. sight justified al optimistic
policy.
Remembrance Of Judge Garv's warn
ing. however, made such opinion far
from universal, and ir such trading
is was seen last week, with public
participation slight and traders op.n-
ions ruling the course Of prices, United
States Steel often dominated dealings
in securities. The price OF the stock
tended 10 sag, but daily losses were
fractional md dealings were not large
until Thursday, when persistent re
ports that no dividend would be or
dered on the common stock sent IL 20
its lowest FOR months.
Idle Funds Grow in Banks.
With the seasonal lessening OF need
for funds, surp Us reserve holdings OF
financial institutions here continue 20
increase. This great ease Of money. so
long maintained, carries with il its
dangers. Lending institutions here
recognize this IN their discrimination
in collateral loans against industrials
not well established at high prices.
Nevertheless, great additions TO lend
ing funds and lowered reserve require
ments mean continued pressure 10
make use OF idle resources.
Collateral loans here have immense
IL increased. While it is true that large
investors in this country are apt 10
carry their holdings through aid Of the
banks, such great expansion as has
l. 81 NJ b -
means that a large proportion OF the
s.curjties we have taken from Europe
Is being temporarily carried here IN
stead Of finding Judgement IN hands o.
investors throughout the country ne