New-York tribune., 1909-09-04
FINANCIAL MARKETS
HIGHER STOCK PRICES.
No Outside Interest an the Dealings
-Banks Lose IN Cash Holdings.


market prices were firm in the larger part OF
the day. with substantial improvement recorded
in a number of issues, including United states
Steel common which made new high record OF
S014. The buying of this issue is based on the
belief that before the end of the year the dl-
rectors of the United States Steel Corporation
will increase the dividend to per cent level,
reason for the idea being found in the remark
able gain in the corporations business in recent
weeks which indicates a surplus at the close OF
1909 Of upward Of II per cent on the common
Atchison common also is being bought on the
expectation that the issue will be returned to
G per cent basis at the next dividend period, its
price advancing more than l point yesterday
on what was said TO be inside information that
the strongest interests in the property were ac-
cumulating the shares in expectation of a mate
rial appreciation in their price before the next
dividend meeting of the directors. In the gen
eral market there was little trading outside OF
that for professional account Commission
houses were not active factors in the dealings
while in the more important financial circles
there was a strong disposition to let the market
drift along under the influence of traders opera
tions which as a rule represented the closing
out of contracts incident to the three-day holi-
day The advance in United States Steel helped
the Great Northern ore certificates, Bethlehem
Steel and Colorado Fuel and Iron, but the indi-
cations of gross manipulation in Steel common
In the afternoon tended to keep conservative
operators out Of the market. on the theory that
in spite of the strong interests behind the stock
and the proba bility of q higher dividend the
reckless transactions by spectators not 1dent-
fled with insiders would precipitate another
sharp downward movement, not only in steel
but throughout the entire list. After this issue
reached so two blocks of 5000 shares each
changed hands within the space Of a few sec
onds, and after the lapse of a few minutes there
was a transaction OF 5000 shares and another
Of 1000. while sales of 1000 shares were so
numerous as 20 attract attention. 1t looked as
If a rather large Steel wash" being ham
died Some OF the so-called specialties en-
joyed sharp advances in the day.
According to the known movement of money
in the week. the local banks have lost more than
81 900 900 in cash holdings, due to heavy pay
ments TO the Sub-Treasury and an excess Of
shipments on interior operations, the loss to
other cities amounting to about $1,0O0OOO. The
course of domestic exchange reflects an in
creased demand for New York funds in the
West and South, and it is quite probable that
from now until the end OF October the city
banks will be drawn upon heavily for out-of-
town account Notwithstanding the usual season
able statements that the interior will be able 10
finance its requirements without recalling bal
ances from New York. In addition to the loss
TO the interior on the direct movement. local
banks were compelled to pay large sums into
the per cent redemption fund for their coun-
try correspondents. On their operations with
the Sub Treasury the banks paid $5,140000
more than they received from the government.
the influence of our improving import trade
being reflected in the excess payments to
greater extent than any other factor and sug
gesting the probability of substantial losses
on this account throughout the autumn. on
the basis OF the estimated loss in cash by the
banks to-day's Clearing House statement is not
likely to make a favorable exhibit. and unless
there has been material contraction in loans
in the week there should be a substantial de-
cline IN the reserve above legal requirements,
which last week reduced to a little more
than 600, against $65,000,000 year ago.
People who cocksure that money rates will
not advance in the course of the next two months
To a relatively high level base their argument
on the fact that the money market last fall
easy. without any great demand from the in
terror for currency for crop moving purposes,
but they fail TO take into account the fact that
bank reserves at that time were abnormallY
large that the mercantile demand for accommo-
dation was practically dead and that in the last
twelve months the interior has sent enormous
amount OF money To New York. while in the
same time this centre has lost heavily gold
exports. Trade Is active now, and the interior
will need its funds that have been put in
the local stock and loan market