New-York tribune., 1909-02-07
FINANCIAL AFFAIRS.
STOCK PRICES DOWN.
Heaug Dealings in Mortgage Issues
Bank Reserves Decline.

-Transa actions in securities were light in vol
urne in stocks and heavy in the bond depart
ment. total sales of mortgage issues in the two
hours OF trading amounting in par value to
.s.512,5oo Activity in bonds in recent days
has been confined IN great part to the second
and third grade class, with especially heavy op-
erations in the issues Of properties whose
stocks also have been prominent features Of
the dealings on the Exchange, notably the Gould
securities. Much of the business in bonds has
represented a conservative sort Of speculation
but in addition to this kind Of operations there
also has been q genuine buying movement for
the account of institutions and individuals who
have abiding faith in the permanent invest
ment value Of high grade American railway
mortgages. Total trading in stocks yesterday
was less than 100000 shares, with the chief
activity in Arnalgamated Copper Brooklyn
Rapid Transit Chesapeake & Ohio Denver &
Rio Grande. Missouri Pacific, Reading South
ern Pacific, Texas & Pacific Union Pacific and
United States Steel In which net losses We're
recorded on selling made up almost entirely Of
professional operations Elsewhere in the mar
ket the tendency also a rule was in the dt-
rection Of lower prices, though declines were
not important or significant Of adverse news
developments Traders worked on the bear side,
and went home short Of stocks on the theory
that something might happen over Sunday that
would induce active selling movement at to-
rnorrows opening Spectators who could con-
jure up good reason for a decline decided
that 1t was about time for the development Of
& japanese war scare. and put out short con-
tracts accordingly The general market closed
IN extreme dulness.
Reason for the weeks firmer tendency in the
money market is found IN the Clearing House
bank statement, which published usual
after the close of business. Cash holdings
compiled on the average system declined s22.
35s,500 and reserve above legal requirements
S17,3e0,575 10 s11,336.S00 which compares with
t29, IFS in the same week last year and So
345.S75 in 1907 In the exhibit Of actual con-
ditions as Of Friday night the loss in cash was
slightly less. while the falling off in reserve
was materially lighter than that shown in the
average statement, owing to a large contraC-
ton in loans, which compared with a small in
crease in loans in the average figures. The
statement Of trust companies and banks not re-
porting 20 the Clearing House showed in
crease in cash Of more than $4,000 600, which
explains the ,arge decline in the same holdings
of the associated banks. The trust companies
and state banks under the new law were COM
PEELED TO increase their reserves to new basis
by February l. and the cash to effect this
change was taken from the banks where il had
been on deposit. The banks also lost on gold
exports to the Argentine and Withdrawals
for government account Money rates will
hardly return to the low level recently prevail
ing but unless an active inquiry arises for ac-
commodation from mercantile sources a high
price for loans is not probable in the near
future. Money continues to come to this centre
from the interior and funds taken from the
depositary banks for government account will
not long remain in the Treasury vaults, owing
TO the constant excess of federal expenditures
over receipts.