New-York tribune., 1908-09-13
FINANCIAL AFFAIRS
STOCK VALUES FIRMER.
Bank Statement Figures Shoe Loss
in Cash and ReserUe-Lodns
Increase.

Stock market trading was moderately active
In the two hours OF business on movement OF
values that showed gains in most issues at the
close. Opening quotations as rule were unoer
the final figures in Fridays dealings. but rally
soon developed throughout the list in the course
of which prices advanced from Y to / per cent
above the initial level, with Reading in the leao.
The buying represented in great part covering
of shorts by traders who did not care TO have
contracts outstanding over the end Of the week.
commission houses having few buying orders
for new bull accounts. Consolidated Gas was
strong on the announcement of an increase IN
the dividend on Brooklyn Union Gas Stock
which is largely held by Consolidated Gas inter
es+s and on small operations the Brooklyn gas
shares advanced to a new high record Tor the
wear. The Hartman issues were active Ieat-
ures but there was no indication OF aggressive
buying while the same thing may be SAID OF
the entire list which moved under the lnnuence
Of professional operations rather than on pur-
chases for the big interests who are supposed
to be holding their surplus speculative STOCKS
for better quotations. There were quite a num-
ber of persons in the Street who at the close OF
the week expresse the opinion that stocks
would seek a lower level before the chief pulls
would renew their operations, and II was hlhteo
that an election scare might reach the street
anv moment especially if in the Maine election,
which is being fought out on local issues, there
sbouId he q falling off in the Republican vote.
On any reaction that may develop stocks or
merit ought to be bought for investment Ihe
weekly return of the Clearing House bank aver
ages showed a loss in cash of S3,29IooO and
decrease In reserve 81, ,652, ,125, the heavy loss
in the reserve item being due both to the loss
in cash and to a large expansion in loans,
amounting to nearly 500 100000 The gain in
loans reflects in great part borrowing for stock
market purposes. Actual conditions as OF Fiji
day show loss in reserve of $6,321, 100 Total
reserve is now S51 ,992, ,S25, against $6,91S,TO0
at this time last year.
The advance in call money rates last week
marked the beginning OF the usual fall period
of higher quotations for funds, but the move
nent did not foreshadow the development or
stringency which so often in the past has been
the chief feature Of the autumn market Z
per cent rate looks high after the per cent
level that has ruled for many weeks, but as a
matter Of fact . per cent call money reflects
extremely easy conditions in the money mar
ket as a result of enormous city bank holdings,
which stand at more than Sooo,oVopOo IN
cash. Call money doubtless will work to a
higher quotation in the course OF the next re"
weeks, but unless stock market speculation oe-
nands for accommodation become excessive the
high point of the season should be well under
the average Of corresponding periods In recent
wears. The New York Clearing House banks
could ship as much as S5QGO00oO TO the IN
terror and at the end of the movement still have
on hand reserves above legal requirements OF
about S2OOO00O0 1t is not certain that the
West and South will require S5OOOOOoo this
autumn. but even If they do 1t readily may De
seen that in view of the strength Of bank con-
ditions here there is no probability or an carry
disturbance in money in the near future The
high point for demand sterling in the week just
closed was not far from the level at which goio
couId be sent abroad at a profit, but the closing
figure was at a decline and unless there should
be a material gain in rates in the current week
the precious metal will not be exported 1t Is
probable that continued frmness in the money
market will encourage the drawing of hnance
hills which would meet the requirements or
ren7itters until the market receives supply or
exchange bills against exports of grain ana
cotton One of the causes of the current
strength IN foreign exchange is founo In tne
n,,,,ia. nv onerators who two months ago made
beavv sales of exchange for future delivery on
the theory that the Texas cotton crop would
come upon the market earlier than usual Cot
ton bills however, on this crop have not ma
terialized and as a consequence big short in
terest has been covered.