New-York tribune., 1909-05-21
FINANCIAL AFFAIRS
STOCKS CLOSE HEAVY.
TRADERS Sell the General Market
Europe Lends Money Here.

Though stock market values showed material
strength in the early dealings. closing quota
tions as a rule at net losses in the active
list, afternoon declines being due TO realizing
and absence of the aggressive demand that
characterized the course of trading in Wednes-
days transactions. There was however, no i'm
portant liquidation and no indication OF uneasi-
ness on the part OF the bull element over the
future movement Of values. which the greater
number of people in the Street apparently be
iieve will be in the direction of higher quota
tons before a substantial break develops
Stocks often move contrary to expectation, and
as prices in most cases are at a level that fully
measures trade Improvement while enormous
amount Of stock Is being carried borrowed
money. 1t may not be safe to count upon an
uninterrupted bull speculation. The chief nnan-
cal institutions and the leading capitalists.
however, are interested in maintaining stability
in market values, and long money remains
easy and there developments OF a dis
turbing character II is not likely the bear ele
ment will be able to bring about anything more
substantial than temporary recessions. Never
theless conservative market followers quite
willing 70 take their profits at prevailing figures.
There practically was no response in yesterdays
operations TO several dividend increases. while
traders professed to be grievously sappointed
because the Hartman directors did not advance
the dividends Union. and Southern Pacific.
the decline in the market beginning after the
declaration of the regular rates, which in
telligent person thought would be changed. AS
the trading was in great part professional the
sharp break IN Western Maryland doubtless was
an influential factor in inducing selling In other
parts of the list, which became rather pro-
nounced in the last hour when many of the
prominent shares sold a point or more under
the high levels In Wednesdays dealings In the
early market United States Steel common and
Chesapeake & Ohio made high records,
while the average price of the leading rails and
industrials in the forenoon within a frac-
ton OF the best OF the year. Both United States
Steel and Chesapeake Ohio shared in the sub
sequent weakness the only important features
of strength in the late trading being found in
the American Malt issues. Atlantic Coast Line
and St Louis Southwestern shares
With Paris drawing on this centre for gold
andlLOndon filling a demand for the Continent
and Argentina, the movement to the latter
country being financed through New York. the
position of the Bank of England and OF the
banks in the United States is Of particular in
terest 1T this time. In it's weekly return, pub
lished yesterday the British bank shows pro
portion of reserve TO liability of 1850 per cent.
which compares with nine-year average Of
1926 per cent. bullion holdings being larger at
present than at this period a year ago and in
1907, while the minimum rate Of discount stands
at 215 per cent, with the probability OF per
cent rate in the early summer. The institution
gained $4,000 IN bullion last week, but the
Continent secured a considerable amount Of gold
in the London open market. including Mondays
South African offering, which went to Austria.
Notwithstanding the outgo OF the metal, no un-
easiness is felt in Lombard Street over the
money market, while the same thing may be
said regarding the local situation, bankers here
expressing no concern over the flow OF gold
abroad, which far In the current year has
amounted TO S5O91, ,573. The compilation by the
Controller Of the Currency Of bank conditions
in this country under his recent call shows that
since May last year there has been an increase
in loans and discounts Of S434, 764. .OOO against
an. increase in specie of 50, ,561. 502 and an in
crease In legal tenders Of S14.714.O55. In the
same time deposits have increased $513 4O3 594
SD 27SSO3 United States deposits have de-
creased in the last year $112,e1S.967. United
States bonds to secure deposits have declined
from $50, ,74564O TO S55. .624, 800 and other
bonds for United States deposits show de-
crease OF S96 765, ISL. while bonds and other Sc
curities owned increased in the year $3.50 oO3,-
617 Total resources of the national banks OF
the country amount to S9,36S. .S63. .S43, gain OF
STA 261. .145 over this time in 1905. of which
only SIG go 557 Is in actual cash, national bank
notes not included. The banks hold S679 65S 79S |
IN specie, while their notes outstanding amount
to $685.. .S67, ,526 OF inelastic and unresponsive
bond secured currency.
A striking feature OF the Controllers state
ment is the excess OF loans shown over de-
posts, amounting to S137.050,4S6 Speculation
rather than business needs accounts in great part
for. the enormous expansion in the loan item
OF this increase the New York City national
banks contributed $1o8O1S.336. Money rates