New-York tribune., 1908-11-01
FINANCIAL AFFAIRS
STOCK PRICES. DOWN.
Room Operators E0ering Their
Contracts Incident to Election
Bank Reserve Increases.
Bank ReserUe Increases.

On a light volume Of business prices for the
greater number of securities were weak III the
TWO hours Of trading, without the accompani-
ment however of important liquidation or ag-
sressive selling by the professional element
Operators on the floor professed 10 be disturbed
over Mr.. Tafts announcement that no 1aVors
would be shown the Standard Oil Company IN
the event of his election, but this profound argu-
ment for lower prices failed to shake the con-
fidence of investors in the properties in which
they are interested, nor did 1t appeal TO OUTSIDE
spectators good reason for going short or
the market. There was no buying power large
enough to prevent reaction in quotations
while at the same time there was nothing IN the
character Of the selling sufficiently convincing
to encourage heavy sales of long stock Prob
ably much Of the selling represented evening up
operations incident to the election. On the re-
cession some stop loss orders were caught par
ticularly in Reading and Union Pacific, and as q
rule last prices were at the lowest Some
good support was reported in United States Steel
common The weekly statement OF bank aver
ages published after the close of business,
showed an increase in reserve as result Of a
large contraction in loans, which. with a loss in
cash. was responsible for a decline in deposits,
while in the statement Of actual conditions, as
Of Friday night the reduction in loans was
twice as heavy shown in the average figures
and the loss In cash nearly three times as great
as in the statement compiled on the average
system AS result of all changes the reserve
above legal requirements now stands at $685.
5s9125, which compares with a deficit of $685.
S38,S25 at this time year ago and a surplus Of
s3049775 In 1906 Though loans Of the banks
decreased those of the trust companies in
creased; also cash holdings. Total cash Of the
New York banks and trust companies amounts
to s4se, 1892, 500, loans to s2309,471,0oO and de-
pcsits to s2.494921,700-
The question of an extra dividend on the stock
of the Northern Pacific Railway Company is
causing much discussion in the Street, and while
spectators VINO are operating for the rise and
who do not think Of possible after effects Of
announcements that for the time bring about
higher prices hopeful that the directors Of
the company will make the payment the more
conservative interests in the financial commu-
nifty do not appear in favor of such diSburse-
nent. The final instalment o.. the Northern
Pacific new stock of s93,00O.0OO is due January
l. 1909, when the holders of the new stock will
stand upon an equality with the old stockhold-
ers, but there persistent rumors that before
that time the Northern Pacific Company will
pay an extra dividend Of either 10 or u per cent
calling for from $4,000 900 TO s1S,o0o,000 all of
which will go to the old stockholders. An oper-
alton of this sort would be manifestIy unfair TO
the subscribers Of the new stock, but this is
considered secondary consideration by the
people opposed to the payment, who believe that
il would be q grave mistake in policy for the
company to give big bonus to stockholders in
these days of hostility to the railroads in many
states and at a time when the cost of operation
is heavy and gross income far below the normal
Some Of the larger Stock Exchange houses are
considering this question IN their market letters,
and a noteworthy contribution to the discussion
was made by ]. S. Bache & Co. yesterday, who
presented In their weekly review many strong
arguments against the declaration Of the dvi-
dend, saying among other things that to have
called upon stockholders for money under the
extreme conditions which existed year ago
was bad enough, and that TO admit now that
more money was called for than was necessary
would furnish an example of high finance prev
alent few years ago. but which the public has
been led to believe had been relegated to the
past Other roads of the highest credit have
found II extremely expensive in recent inancings
to raise needed funds. some paying high as
snd per cent. There can be little doubt that
the Northern Pacific with much Of its line run
ming through undeveloped country, in the
near future will need all Of its available assets
for future improvements and betterments, and
IL is hard TO believe that experienced railroad
directors upon careful consideration will pay out
round sums as bonuses which afterward will
have 10 be replaced Subscribers the new
stock already have paid in $63, 600 ,000 Of which
there is left hand at the present time less
than S40.00o00O, and the question arises Is it
out Of this fund that the extra dividend is to
be made?
Foreign exchange weak again yesterday
showing a decline of 35 points since Wednes-
day. Bankers who have been accumulatins
credits in recent weeks have been sellers of ex-
change in the last few days. while many bankers
who believe that Mr. Taft will be elected have
been Offering their bills freely on the theory
that after the election there will be better en-
ployment for funds here than in Europe Ex-
ports Of breadstuffs in the week were smaller
than in the week before, while the gain in the
shipments Of cotton was not heavy enough to
bring about the decline recorded in sterling
rates. Doubtless the accumulation Of exchange
in connection with the payment of the New York
City revenue warrants maturing TO morrow In
London was larger than the requirements OF the
serve to bring the surplus ths market