New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-17
FINANCIAL MARKETS
MANY STOCKS DOWN.
Bank Statement Shoes HeaUy Cain
in Reserves and Big Loan Red~c-
tion-iSterLing Rates Up.

Stock market trading was moderately actlVe
IN the two hours of business on movement u
prices that showed the effect or reallzlhg salGS
and pressure from the room element when TOOK
advantage of the absence of important new buy
inc orders TO offer stocks throughout the list,
especially the Hartman shares, Readlng anu
United States Steel in which, however, oeclhe5
did not reach large proportions. opening prizes
were under the closing in Fridays market ana
though some Improvement was reported peIo:e
the end of the first hour the final tendency was
in the direction of a lower level without the ac-
con1pa niTnent of any important hquldatlon. II
was more Of a traders market than II had peeh
IN many DAYS. The bull element was not much
in evidence except to the extent of taking stocks
when offered at concessions fair purchases being
made in Reading and United States Steel for the
interests who for weeks have been ldentlneo
with the trading in these issues. ROCK Islaho
was we'll bought; also the Copper stocks. Amer
lean Cotton Oil and Kansas & Texas It Is
quite likely that Rock Island preferred will be
placed on a 5 per cent basis in the coming year.
while with the increase in the companys bust
ness which must accompany the expansion Ct
industrial activity now under way the common
stock should gradually move toward a higher
level in expectation of payment to its holG-
ers. The alliance with the Missouri, Kansas q
Texas will help the Rock Island, while the har-
monious relations between Rock Island ana
Ha1ylev interests will serve to add value to the
securities of the Rock Island and Hawley roads.
Bank statement figures showed large contrac-
ton in loans, both in the exhibit of averages
and in that of actual conditions as of Friday
night and a much more favorable change in
cash than indicated by Fridays estimates, this
item rejecting the increased offering OF out-oI-
town funds here, owing to the higher money
rates and the receipts by the banks IN connec-
ton with the expenditures in the Hudson Fulton
! celebration. AS a result of all changes the re-
serve in the average exhibit increased S5.737625,
Z and in the actual statement $8,292,S25 Trust
companies also showed large contraction IN
| loans.
| Foreign discounts were firmer yesterday, and
| further demands for gold were made upon the
! Bank of England, Withdrawals amounting to
/ f7SOOOO while cable dispatches indicated that
! the English institution would be unable to Sc
/ cure any of the South African gold that viii be
offered in the open market tomorrow. The
| monetary situation at London is not at all ia
vorable to the theory held in certain Wall Street
circles that New York soon will be able to i'm
port the yellow metal from Europe, While the
| course of the local sterling exchange market
certainly offers no encouragement to the idea,
! rates yesterday showing unusual strength for a
/ half holiday, at advance Of 20 points for de-
mand The upward movement was reported in
! the face of Fridays heavy buying for foreign
/ account in the local stock market and Of a
! marked Improvement in exports Of cotton and
grain and il ought to suggest to spectators in
/ Wall street the wisdom Of dropping the argu-
r,ent that the stock market here will be helped
! to higher levels through gold imports and fur
! Their heavy borrowing by New York at London
/ through the medium of finance bills, Of which
there already is an enormous amount outstand-
/ ing Our debts TO Europe on loan account
/ against speculative commitments is enormous,
and liquidation of these obligations, rather than
! the accumulation of new debts, may mark the
! next turn in the international money markets.
If Europe decides to let New York handle its
| own speculative requirements, there will be a
period of forced selling in this market while if
/ bull operators persist in their transactions for
higher prices, on the theory that there is enough
capital and credit to meet the requirements of a
/ big bull market at a time of growing business
needs in the money market there also will be
some selling involving heavy losses to the spec
ulatiye element. Stocks are passing from strong
/ 10 weak hands, and unfriendly attitude on
/ the part of foreign bankers to our speculation
has developed. These two factors alone are
enough to discourage sensible people from buy
ing at current levels, while in addition there is
the argument of growing firmness in the money
market. At the moment there is no extensive
short interest TO support prices in the event of
break. The United States Steel directors will
meet on October 26 20 take action on dividends.
Doubtless the rate on the common stock will be
increased, the advance already having been fully
discounted in the stock market Good news
quite often brings heavy selling