New-York tribune., 1909-08-22
FINANCIAL MARKETS
ACTIVE STOCK TRADING.
HeaUy Buying by the Shorts-Bank
Cash and Reserve Holdings
Decline.

The covering movement that began in the
late operations in Fridays stock market made
further decided progress in yesterdays short
session TO the accompaniment of advances run
ming from ! 10 points in the active issues. In
large part the buying was for the account OF
the professional element. commission houses
being unimportant factors as far as executing
orders for public interests were concerned.
though some investment transactions were re-
ported in high grade issues. The recovery in
prices from the low points made in the demor-
allied market earlier in the week was entirely
In line with the general course of markets fol-
lowing a period OF extreme weakness. even to
the selling on the advance by interests who
took heavy blocks OF stocks on the decline in
order TO prevent the development OF panicky
conditions. Whether not there is to be a
further aggressive bull speculation at the mo-
ment VIII depend upon the character OF buying
that arises following the completion Of the
ering OF short contracts. which was pretty we'll
accomplished in yesterdays transactions in
which Union Pacific showed advance from
It's low point Friday OF points and a net gain
Tor the day Of 2, on volume Of dealings far in
excess OF those in any other issue on the basis
Of full stock. Reading, New York Central Texas
& Pacific, Pittsburg Coal, United States Steel
St Paul. Brooklyn Rapid Transit and 800"
common also were strong features. while the
general list, with only minor exceptions ended
wei above the final figures OF the preceding day
Brooklyn Rapid Transit stock and the con-
buying that was based on the expectation of an
unusually favorable showing in the systems
forthcoming quarterly statement, and Western
Union enjoyed an advance OF points on light
dealings a result OF the decision of the mas
ter appointed in the litigation OF twenty-five
years standing, in which Western Unions
claims We're allowed 10 the extent Of awarding
II upward OF twenty thousand shares OF stock
In telephone subsidiary companies and 81 500 900
cash as an outcome Of an agreement made thirty
years ago, when the telegraph company retired
from the telephone field The close was some
what under the best
Bank statement figures showed in q large con-
traction IN loans the liquidation recorded in the
stock market in the week though an increa se
larger than the loss shown by the banks H-ss
reported by the trust companies, which were
itee lenders as result Of the frmer rates for
money In the average statement loans de-
creased ss,736,200, but the reduction failed TO
bring about Improvement in reserves, owfn, TO
the heavy loss in cash resources. amounting I'm
the average exhibit to s7,11ss 500 and in the ac-
tual figures as OF Friday night TO more than
'o'VVOOoe- AS consequence OF ali changes the
reserve above legal requirements declined SO
ooLl9o TO s2O'72sl50. which compares with sss-
ls7,s75 at this time year ago and SO e76 400 in
lsV'. The current reserve is not large enough
10 encourage the maintenance of money rates n,
the present level for any length OF time es-
peciaIly as In the last two weeks there has haa,
loss In cash holdings Of more than .11 0no oOo
with all Indications pointing 20 a steadily prov-
ing demand by interior banks upon their hal
ances at this centre