New-York tribune., 1909-01-24
FINANCIAL AFFAIRS
SMALL STOCK CHANGES.
Il Fec Shares Higher, but General
Tone of Prices HeaUy-Bank
Holdings Increase.

Stock market movements irregular
throughout the two hours of trading on mod
erately active volume Of business for half holi-
day session. In few issues decided strength
was shown at times. but the general tendency
among the prominent shares was in the direc-
tion of slightly lower range Of quotations, net
losses when recorded being confined TO frac-
tions except in Erie and New York Central, in
which declines were l and IL per cent, re-
spectively. American Cotton oil again was
strong feature while evidence Of strength was
presented by Chesapeake & Ohio. st. Paul, the
local traction shares, United States Rubber and
Virginia Carolina Chemical on traders opera
tions Commission houses were not important
factors in the dealings The professional ele-
ment as rule worked on the bear side OF spec
ulation paying especial attention TO Erie and
United States Steel common, but the declines
brought about not in proportion to the
efforts expended to induce liquidation. The
Street which uses the Erie situation TO suit its
varying ideas and market purposes, was quite
certain the upstate Public Service Commission
would refuse the company's application for an
enlargement in it's bonded debt by which IL is
proposed to place the road in stronger fnan-
cial position and this speculative attitude on the
Erie matter. which is on an alternating basis.
was good enough reason for floor operations
against values. The market closed inactive.
Commission houses rule. in their weekly
letters to customers, did not advise the purchase
of securities except on recesstons The con-
servative firms would welcome a readjustment
of prices to a lower level, as they believe cur
rent quotations too high to appeal to the
public that has idle money on its hands. Stocks
in most cases are not attractive speculative pur-
chases. and a noteworthy falling off in the in
vestment demand for mortgage issues is report
ed Bonds have been issued since the first Of
the year to extent in excess of the capacity
of the market to absorb them, and as q conse-
Quence more less congestion is noted
Bank statement figures showed a material
increase in reserve holdings in both the exhibit
OF averages and IN that of actual conditions
Of Friday night. Cash holdings expanded to the
amount of more than ss.o00,000, loans increased
upward of S6000000, while as a result Of all
changes reserve above legal requirements moved
to $303S7.450. against $25,5SS,i75 in the week
before and s37,064.500 at this time year ago.
Trust companies increased their cash item by
upward of S5,920,00 while their loans increased
to about the same extent as those of the asso-
ciated banks The trust companies percentage
of legal reserve is 32 compared with 27.2 by the
banks The banks gained last week in cash
nearly as much money as called for by the Sec
retary of the Treasury TO be paid by depositary
institutions yesterday, and it is likely that
the final payment Of 100000 this account
will be offset to a great degree py further heavy
receipts OF currency from the interior The
increase by trust companies in their cash re-
serves compelled by law, which means with
drawaIs from the banks with Withdrawals of
government funds from national banks and gold
exports. is not likely to bring about higher rates
for loans owing TO the steady flow of currency
to this centre, which will continue until the
interior spring demand. for funds develops or
until better conditions arise in the country's in
dustries. Trade reports show that conservative
progress is being made in business circles but
the movement is not heavy enough 70 use I'D
the idle money in the country. Gable dispatches
from London yesterday indicated that the Bank
of England might be able to bid successfully for
some of the South African gold that will be
offered in the open British market tomorrow