New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-05-08
Waiting Period Calm.


since our citizens were killed on the
Lusitania.
Waiting Period Calm.
Were it not for this long drawn out
period of patience securities might
well have been expected to show some
thing more than the nervousness that
marked last weeks dealings while we
were waiting for news Of Germany's
position. As it was, prices in this time of
suspense gave way slowly, and the size
Of the markets diminished instead Of
being enlarged under pressure of appre-
hensive selling. Speculative accounts
for the rise had been lightened in the
break thai came two weeks before,
when the President laid our case
against Germany before Congress and
sent his message TO the other side.
Last weeks early decline was hardly
more than could be accounted for by
natural reaction from the over-rapid
recovery of the week preceding.
While caution prevented new buying
orders from the general public, there
was little liquidation until Friday and
marked absence of outside interest in
the trading. Dealings for most of the
week were Of highly speculative char
acter, centring in a few issues. which
could easily be moved up or down. or
which for special reasons responded to
the ordinary domestic news of the day.
The war order group as a whole did
not do, particularly well, and reports
from the steel trade Of new munition
contracts fell on barren ground. Ar
engagements with the Carranza govern
ment to allow our forces TO remain in
Mexico unmolested did little for the
general list and benefited only slightly
securities of companies whose interests
lay in the troubled region to the South.
Bond Buying Slack.
Buying of bonds practically ceased
as investors decided to delay until
some light was thrown on the future
course Of our international affairs.
There are still large amount of bonds
waiting to be placed with final holders
and some private offerings were made
at concessions. but only slightly below
the market. In the main prices were
fairly well maintained even on Fri
day. Selling here for British account
practically ceased. How well the mar
ket could have been sustained had Lon
don liquidation been continued was q
question that investment houses were
glad they were not compelled TO an
swer.
Even in Fridays excitement the
money market remained calm. At their
highest call loans were not made above
per cent and renewals al 2l2 per cent
were only one-quarter Of | per cent
above the rate prevailing on most days
Of the week. Time loans could be had
readily at rates practically unchanged
from those of the days preceding. Per
haps banking circles took the interna-
tional crisis with greater calmness
than was shown in the stock market,
but money rates ordinarily are sensi-
tive TO threatened disturbance of finan-
cial affairs. The truth is that our
banking position is sound. in spite OF
the sudden wane of prosperity and
that confidence has been immeasurably
strengthened by the mobilization Of
our resources through the Federal Re
serve act.
Sterling exchange. which for two
months or so had been maintained at
l.76 or better for demand, got below
4757s last week. The market has long
been an artificial one, held strictly IN
der control by bankers here and in
London Proceeds Of the Anglo-French
loan, placed six months or so ago,
have gradually been drawn upon; sales
Of British securities turned over TO
London authorities by private holders
have been large. For some time invest
ment demand has been light as intend
ing purchasers have felt that caution
was advisable. in view OF the threat
ened break with Germany, so offerings
Of bonds for British account have slack
ened. In some quarters IL IS held that
unless change in the investment sit
uation brings better buying of bonds
it will be necessary either 20 let ster-
ling rates drop or see bond prices sent
lower.
Exports from this country in March
reached the immense total Of $40
100000. 100000 more than we sent
cut in February and a record for this
or any other nation. Imports are in
creasing as payment in goods at higher
prices is doing something toward
squaring international debts. In spite
Of this, shipments were $4,000 900
more than receipts, and in nine months
of the present fiscal year the favorable
balance on movement Of goods is ST.
491 900 900. The government estimates
an export excess of S2.000O00, 900 by
the end of the fiscal year.
Gold is no longer coming in any
quantity In March less than 10000
600 was brought in and our shipments
were nearly 81 900 900 greater. Even