New-York tribune., 1909-01-16
FINANCIAL AFFAIRS
LIGHT STOCK TRADING.
Net Gains Erceed Net Losses
Money Easy IN Ill Departments.

Stock market values moved in a desultory
manner in both directions at different periods
in the day with irregular changes at the close
net gains predominating. though many OF the
prominent shares presented small losses The
volume Of trading was light and represented IN
great part the operations OF the professional
element which shifted its possession at frequent
intervals. its transactions giving the market an
uninterestlng appearance for the observer ana
affording little opportunity for prohtdbIe vent
ures on either side of the account. In a few IS
sues chiefly second grade securities decided
strength was shown, but in such stocks as
Union Pacific, New York Central, Reading
American Smelling and Amalgamated Copper
heayiness was reported. the weakness Of the
two last named being based a further de
cline in the price OF copper. In the last hour
the possibilities Of American Cotton Oil and
American Ice seemed to appeal to room trad
ers who bid the issues up more than two points
while further reports which appeared TO be wei
founded, that the Wisconsin Central would pass
into the hands Of Canadian Pacific interests by
q purchase OF the property through the Mime
apos, ST. Paul and Sault Ste Marie, which IS
a Canadian Pacific road caused some additional
buying of the Wisconsin Central shares; also
the Duluth South Shore & Atlantic stocks.
Traders showed unwillingness TO make extended
commitments in the general list, owing TO the
absence Of activity on the part Of substantial
interests the latter taking no part in the trans
acions, beyond offering n little support at times
unwilling attempt to create activity. but IT
is ready to follow any movement that may arise
on either side Of the market Money was easy
throughout the day. time funds for short PERIODS
lending at the lowest rates recorded in recent
times The local banks gained upward of
SIS 100000 on the weeks movement Of money
Withdrawals of cash from the banks by the
trust companies 10 increase the reserve Of the
latter as required by law on February !. to IL
per cent OF deposits, upon which reserve Is
compulsory and the payment by banks of the
country Of coo of government funds 10
the national Treasury, doubtless in connection
with gold exports, viii bring about a slightly
firmer tendency in the money market In the
course Of the next few weeks The prospect
however, Of a tight money market Is not prom
ising At the moment more interest is taken
in the position of the foreign monetary situation
than in local conditions. owing to the advance
in the Bank OF England's minimum rate Of dis
count. the fiotation Of the Russian loan and TIE
constant increase I'm the gold holdings of the
Bank Of France. The higher rate by the British
institution has not caused stiffeT quotation
for Paris exchange on London. and it remains
to be seen whether the movement by the bank
will be effective in preventing Paris from Sc
curing the South African gold that will be Of
fered in the open English market Monday.
In the last year the Bank Of France has ac-
cumulated an amount Of gold almost equal TO
the entire sum of the forthcoming Russian loan
and a large proportion of the gold involved
in the loan will not leave the French vaults the
actual holdings of the bank viii not be mate
rally diminished. The Fgench bank easily
could have financed the Russian requirements
without increasing its gold reserve, which has
been enormous in recent years. but IL is the pol
icy Of the management OF the concern 10 ADD
to It's gold whenever exchange market condi-
tions are favorable to the importation of the
metal and there is no reason to suppose that
following the financing of the Russian bonds
there will be a change in the attitude of the
bank regarding the question OF gold supply.
Note issues of the Bank of France author
ized TO the amount of s1,1190 900 or $685..
600 600 francs and the total issue must be
cred with gold, silver, securities and CONNER
cial paper and since the bank may redeem
notes in silver at will. II has the power to pro-
feet its gold reserve and to make it extremely
difficult for other nations to draw tine metal
from the French capital.
In view OF conditions governing the bank the
governors naturally inclined to add to the
institutions gold supply on every favorable op-
portunity and present It may be that con-
siderations affecting the relations between the
various powers. from the political point of view,
have an important bearing upon the movement
OF gold Paris. In the event OF any disturb
ance that might upset the peace of Europe
mendously strong snew OF war. The future OF
monetary conditions in England is at ali
clear. The government is assuming heavy obl-
cations. including the Transvssl loan, the COM
ing borrowings for Irish land schemes and the
years heavy budget, in, which provision will
have to be made for the old age pension list
and the advance in the Bank OF Engiands rate
OF discount therefore may be taken as danger
signal II is not unlikely gold may go direct
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