New-York tribune., 1909-10-02
FINANCIAL MARKETS
NEW RECORD FOR STEEL.
Call Money 4gain 4dvanccS-BankS
Suffer Large Cash Loss.

The marry march Of United States Steel COM
mon 10 new high records was resumed YesIer-
day its price showing a substantial gain over
the closing of the preceding day, with the maj
ouotarion points under par. the level conh-
dently predicted for the issue by current holders
on the advance the selling evidently came from
operators who quite willing 10 let other
people have the benefit of the remaining points
Of the expected rise indication Of distributVe
operations being reflected in the character OF the
trading throughout the FIVE hours OF business
The advance in this stock impaired certain de-
gree Of strength TO the general list while IN
few shares material improvement was recorded
notably in Atchison Analgamated Copper,
Pacific Mail. Canadian Pacific, Reading, Inter
/ borough Metropolitan preferred, Smelling ana
Pacific Coast Telephone and Telegraph, the last
named being dealt in for the first time. and
showing maximum advance Of points. Pa
cihc Mail rose points on buying based on
the strong stand taken by President Taft on the
shin subsidy question, InterbOrough- -MetrOpol-
/ itan issues We're strong a consequence OF the
enormous traffic the local traction lines IN
/ recent days. and Reading, which gained points.
again pushed up by the pools that Tor many
| weeks have been dealing on the long side Of the
security. Reading is slated for $50, according 10
Street gossip, at which price II will yield 80
/ per cent Though the August report Of the
/ PENNSYLVANIA Railroad showed handsome gains
/ in gross and net earnings the stock was weak,
and doubtless offered strange contrast 10
Reading 10 people VINO are not well posted on
/ the vavs Of Wall Street. which present incon-
sistencies that apparently cannot be reconciled
to common sense. Reading pays per cent and
PENNSYLVANIA 6 per cent, while Reading sells at
l69 and PENNSYLVANIA at 149, but Reading lends
itself easily manipulation based in part on
I the theory that the stockholders soon are to
share in some sort Of melon. Many bull move
ueuts have been conducted in this stock in the
past on the same argument, but nothing more
than per cent has been paid. To justify its
Z present price Reading should be a Z or > per
cent basis The Hartman shares were rather
heavy; also New York Central, the HH stocks
and ST. Paul.
According 10 the known movement Of money
in the current week, the local Clearing House
banks have lost upward Of S9,5OO,OOO in cash
holdings. chiefly their operations with the
( subj Treasury. The loss on the interior demand
was less than So 100000 while payments 10 the
government We're about SSOoOOOO in excess Of
. federal disbursements at this centre, the only
gain by the banks on all transactions coming
from receipts of new gold Of SLoSSVbO 1t is
not unlikely that the heavy indicated reduction
in cash the known movements VIII be Offset
10 some extent by cash received incident to the
large expenditures 10y visitors 70 the Hudson
Fulton celebration. and II is possible that there
has been enough shifting of loans to lessen to
considerable degree the effect Of the decline in
cash upon the reserves above legal require
ments. though the strength in, the call money
market does not encourage the expectation Of
fayors bic showing in the general exhibit OF av-
erages which last week indicated a reserve
-l
this week in 1905 there a decline in the re-
serve of more than $S.VO,Ooo 70 S42,3S9 100
While the banks did nOt lose important
amount Of money 10 the interior the direct
movement last week, they were compelled to
make heavy payments To the Sub Treasury
against drafts of out-ot-town institutions much
of the heavy loss on bank operations with the
government being due 10 tins operation which
generally IS employed AT this time Of the year
when home requirements compel the outside
banks TO keep large supply OF cash hand
Interior demands however, are increasing, and
the time. apparently. is not far distant when the
Withdrawal of balances from this viii
reach important proportions
The bun element on tie Stock Exchange is un-
able 10 see in current money movements reason
tor u suhsidence of buII activity in securities
bat .a,ls-rs utIye market observers nnd in the
situation man. factors tLat ought to impress
tl.- -I,.-. uIutI>~ community with thr necessity
tur -f.at.rI caHtiou il transactions conducted
upon borrowed funds Bank RESERVES are low
and .DtorniHE ta tht statement oi the Controller
~ iiIr Cu4rru,.. showing tile position ui tu,
i.tioHaI banks uI thr United states. t.tr,. t.e.-
u~vu only ttso preceding occasions ia tir listurt
of the cOuutrt when tI- September rompIlal ions
of bank conditions have shown So great a de-
crease in reserve and such expansion IN l0ai,s
These years were 1902 and 1906. when specL.a-
i'a "aa active and when tuc autumn season
Niili'ss'a severe stTiHEenc. IN the money mar
keel lh tire ia-t twelve months loans have eA-
paadtd Aa4HtHp.pnn. and IN the same time cash
has declined Sl4,poufssb Call money advanced
10 "A Der cent yesterday. bgt The movement