New-York tribune., 1908-12-13
FINANCIAL AFFAIRS
FAIR DEMAND FOR STOCKS
Most Issues Close Strong Cndef'
Lead of Nee York Centrdt-
Bank Reserves Decline.

After weakness in the first hour OF tradlig litS
general market, with the exception OF AiLi0 tO
Smelling developed stronger tendency anu anu ."
the close the greater number OF issues were "I
small gains as compared with the final hguIes
Of the preceding day especial strength ueLs
shown by the New York Central and the TaiiNoS
equipment shares. The early oecllIeS d q -
were confined fractions, the chlel eAceplioii
heing American Smelling, which was pressed I0F
sale in volume large enough to bring aoOu'
sharn decline in its price, its Weakness now
ever failing 10 exert sympathetic eAtc' oii
other industrial issues except to small de-
gree in United states Steel common. 1heTe
was continuation OF the Hquldatng move
rnent that developed in Fridays ihaFhe''
but in proportion to the amount u ST.
ing the losses in value were insignificant anu
,yera turned in most cases TO gains before tlie
close under the lead Of New York Cehtral' WHICH
gained for the day more than q poLhtS Oh d
movement that was helped by the peile4 'i!,l'
Mr.. Hartman would become Z HleHlne4 u 'i4e
company's directorate in the near future anu
eventually would be made the practical heau u
the road as chairman Of the board Inc Ne"
York Central needs a man ike MT f1aIi lill1ii'
Bear traders We're energetically active III Anef4-
can Smelling basing their campaign on tie low
price of silver and the unfounded runof tha'
The company would soon reduce It's DIVIDEND Oh
its common stock. The directors recently de-
clared the dividend for the quarter and they
will not meet again for dividend purposes until
February. Speculative sentiment was somewhat
adversely affected by the closer scrutiny eXer-
"hNNiNA'
for loans but this not reflected to any eX-
tent in prices.
Anindications point toward higher money rates
for the remainder of the year, and as d conse-
quence Of an advance in quotations loans con-
tanning cheap stocks as collateral VIII not DO
popular with the banks The statement Of the
Clearing House members yesterday showed a
reduction in cash holdings of more than SI,QCo,-
900 and a loss in reserve above legal require
ments Of S3,272, 100 to S16S99 625, as compared
with deficit of $40 161 ,1T5 at this time year
ago and surplus of 81. .699.O30 in 1906. Loans
decreased ST,5799 800 and deposits in a loss of
S15, ,J34, 600 reflected quite accurately the
changes in the loan and cash items. There was
a big transfer in the week Of loans from the
banks to the trust companies, the loans Of the
latter increasing moro than S19,OOO,ooO, against
an increase in cash Of 81, ,3S7. 100 and a gain in
deposits Of 81 299, 500. The actual figures OF
bank conditions of Friday night showed little
change in the cash item compared with the
average statement, but in loans the decrease
was materially less. The cash reserve Of the
banks now stands st 2637 per cent against
212 in the corresponding period last year and
24S in 1906 The bank statement supplies
adequate reason for ffrmer tendency in money
rates the present reserve of S16,S99.625 compar-
ing with q high level for the year of S65,33S,97O
in the week ending August 90
There is at present q great scarcity of
mercal bills in the foreign exchange market.
while the demand for remittance mercantile
account and against sales Of American securi-
ties by European holders is heavy. The high
contago rate in the fortnightly settlement
the London exchange last week also has been
a factor in the exchange market, large
amounts Of stocks carried at the British capital
have been transferred to New York with a
sequent transfer of loans from London to this
centre; and then the usual preparation by the
London bankers for the end of the year win
dow dressing likewise has been influence
in advancing sterling rates. Exchange against
exports of commodities is in light supply
result OF the falling off last week in the exports
of grain, which for wheat showed reduction
from the preceding week Of 2 2347, ,265 bushels
and for reduction of 700 206 bushels
while the marking down of cotton at Liverpool
following the ginners' report showing something
In the neighborhood OF 100000 bales ahead OF
last year, was responsible for the withdrawal
staple. though at the close the export movement
showd some Improvement The exchange mar
ket Is in an interesting position and further gold
shipments are likely An outward movement of
considerable volume would serve TO advance
interest rates here. a development that would be
welcomed by local lenders even II IL should
happen to bring about some liquidation in tho
stock market. From the speculative point OF
view the market has been "bulied" almost to a
standstill and a reaction Of material PROPORTIONS
would bring about more healthful conditions and
pave the way for further active Improvement In
quotations Bulls for a long pull have the best
OF the argument but there many operators
end investors who ere praying for q chance to