New-York tribune., 1909-03-13
FINANCIAL AFFAIRS
DILL STOCK TRADING.
Reading and Erie Strong Features
Banks Lose in Cash Holdings.

r,r;ca movements in Yesterdays stock market
represented little beyond the changing views OF
professional traders who worked on ooth sioes
Of tbe account without bringing about substan-
tial changes on the days operations AS ruie
net gains were shown, Reading supplying Ihe
chief advance with Erie a close second, the I'M
movement IN the latter being based on covering
of short contracts put out on the preceding DAY
on the malicious rumors affecting the company
credit. These rumors were based Wholly upon
the imagination Of the people who circulated
them and though they caused no uneaslnesS III
we'll Informed financial circles their reflection IN
= hear attack ,lpon the Erie securities in Thurs
day's dealings naturally alarmed some owners
of stocks who were not well posted regarding
the source from which the Tumors came. Union
Pacific Great Northern United States Steel
American Malt preferred. American Ice and
BROOKLYN Rapid Transit were firm features IN
the greater part Of the day, and though IN the
last hour they practically were inactive they
maintained most of their early gain, While the
only noteworthy weakness in the final opera
tions was reported in Hooking Coal and Iron and
Third Avenue Considerations bearing upon the
metal markets and the money and foreign eX-
change situation were not factors IN Stock Ex-
change transactions, while. as matter Of fact,
price movements were not controlled by outside
conditions though of course, the absence OF
interest in the dealings could be traced TO the
various uncertainties IN the industrial outlook as
a consequence of coming tariff changes. Com
mission houses had few orders for public ac-
ing on the floor of the exchange. Nine stocks
furnished two-thirds OF the total business.
According to the known movement of money
in the week the local banks have lost something
over S4,000000 in their cash holdings, due to
exports Of gold which more than Offset the gain
on receipts of currency from the interior Money
market rates have not reflected this loss nor
indicated any substantial decrease in the re-
serves Of the Clearing House institutions in
to-day's statement, but the demand for accom-
mediation has been SO light that the absence Of a
hardening tendency in the face Of the shipments
of gold cannot be taken as guide 10 tho prob
able showing of the official bank exhibit as COM
piled the average system as presented in
the actual figures Of last night. Though the
recognized rate which gold coin generally is
shipped to London is slightly above that now
prevailing. upward of 100000 IN coin will be
sent to the British capital from New York to-
day, the engagement doubtless having been made
under conditions involving extra inducements by
the importers that would make the operation
profitable in spite Of the difference between the
regular rate and that prevailing at the moment.
Gold bars could be shipped at the current rate
at a fair profit but Assay Office holdings Of the
metal in this form have been exhausted. Cur
rent indications point toward a stiff market for
sterling next week, with further exIllrts Of the
yellow metal, both TO South America and Lon
don. and possibly a slightly firmer tendency in
the loan market. Anything in the nature of an
important advance in loan quotations, however
is not looked for in the immediate future unless
there should be an important revival in the mer-
camille demand for accommodation. Offerings
Of commercial paper are light in this city and
in other parts of the country, with apparently
no prospect of any activity in this department
Of the money market until tariff uncertainties
have been eliminated as factors IN the situation
In time money ten months accommodation was
reported yesterday at 81z per cent.
Current transactions in stocks are so light
that traders are looking forward to one OF the
sudden changes that frequently mark the course
Of market operations. 1t may be recalled that
last fall. when dealings dwnded to unimportant
totals. the market opened day to the ac-
compartment OF heavy selling that carried prices
lower, the basis for the movement
being a so-called Bryan scare. but which in
reality was due 10 a weak technical position and
the determination Of aggressive speculative in
terest to inject some life into trading through
the medium of lower prices. At the moment
technical conditions are stronger than they were
in the autumn. The short interest is larger and
stocks rule are in good hands, with invest
ment holdings greater than they have been at
any time in the last twelve months, and while
traders inclined to be bearish they have
little confidence in big downward movement
just now. On the other hand, there is nothing in
the situation to encourage heavy operations for
an advance The market is In a peculiar posi-
tion with, the chances apparently favoring con-