New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-10
FINANCIAL MARKETS
LIGHT STOCK TRADING.
Banks Shoe HeaUy Loss in Cash and
Gain an RescrUe as Result of
Contraction an Loans.

Stock market prices were unsettled In the
first hour of trading a consequence OF pear
pressure and further iquidating sales, ana
though better tone developed before the close.
the larger number of issues showed small net
losses Amalgamated Copper. Missouri, Kansas
& Texas. Reading and Union Pacific ended at
fractional gains, but elsewhere in the active
list declines of from u to 9s were recorded
United States Steel common, after maximum
loss of a point recovering about One-half OF
that amount and closing at STA against the
high level of the week at 947s, while move
ments in other parts of the active list as a
rule were within a similar range. The general
character of trading reflected some Will
ingness on the part of the larger In
terests to take stocks the decline and
a disposition among traders . protect their
short contracts, the attitude OF the latter doubt
less being based the theory that some
thing might happen over to-day to bring about
a rapid upward course of stock market values
in to-morrow's operation. AS the general list
has gone back considerably in the week just
closed, and bank statement figures published
after the close of business yesterday We're
better than had been looked for in speculative
circles. it is not impossible that an attempt
will be made to rally prices to-day, but it does
not appear likely that efforts will be made to
encourage a resumption of bull activity, unless
there should be some radical change in money
market conditions, which is extremely improb-
able The period of cheap money is over. and
loans against stock market commitments the
general position of money does not suggest the
accumulation of securities borrowed funds
at prevailing levels, and any buying movement
based the assumption that last weeks adj
vance in loan quotations nothing but
temporary rise will simply tend to produce
dangerous situation in Wall Street. The bull
element however, appears to be confident that
no difficulty will be experienced in shifting
Stock Exchange loans to London, and that
all the funds required for the promotion of
big advance in quotations will be offered by
foreign lenders
In the week some loans shifted to Lon
don, but conditions at that centre do not en-
courage the idea that British bankers will al
low drain upon their resources to help out
American spectators The Bank of England
undoubtedly will advance its discount rate
again this week, and a further advance In the
German bank rate to-day is not unlikely. Loans
OF the Associated Banks at this centre declined
in the statement of averages S36 673 600 and
IN the statement of actual conditions as of
Friday night nearly SJ0,O00OOO while the trust
companies and banks not members of the
Clearing House showed expansion in the
same item of $7,S69 800 That a drastic reduc-
ton in loans by the banks of the Clearing
House was absolutely necessary is reflected in
cash holdings, which declined in the week
more than SS,GO0,OO0 in the exhibit of actual
conditions, and more than SI2OOOOOO in the
statement of averages. The actual reserve now
stands at $I695,125. an increase In the last
six business days of $5G14OJO, due to the
contraction in loans while the average re-
serve is $4.547,750. which compares with S34-
iO',ZZo at TINS time a year ago and 81 655 $50
IN 1So1- The money situation viii take care
OF itself if there is no reckless speculation an
the bun side of stocks in the next few vveal,e
and if the policy of reducing loans should he
continued. "