New-York tribune., 1910-05-24
FINANCIAL MARKET
Sterling Exchange Near Gold
Shipping Point.

The elimination OF the snort interest
In last weeks advance in stocks encour-
aged resumption of operations for the
decline in yesterdays market as soon as
it became plain to the ordinary specpla-
tor that recent Improvement in prices
and bull advices sent out by many brok-
ers in their weekly letters had failed to
attract a public demand for securities.
General news from the agricultural sec
tions Of the country, the course OF the
commodity markets and the increased
strength Of bank reserves at this centre
were in favor Of the advocates of higher
quotations. but they were not effective,
however. in bringing enough buyers into
the market to offset the efforts of bear
traders to force stocks to lower levels.
Declines nevertheless were confined to
small figures until the late trading, with
the heaviest losses among the prominent
shares-in Amalgamated Copper, Ameri-
can Smelling, Union Pacific, Reading, st.
Paul and Southern Pacific. Transactions
were light in most parts of the list, and
the stocks named. with United States
Steel supplied about three-quarters of
panied by any indication of a revival Of
outside interest either in speculative or
investment business, commission houses
reporting an almost total lack Of buying
of this character. Traders as rule are
welded to the bear side Of the market,
though they show considerable caution in
their operations, and at the moment
there appears little chance of a material
change in their attitude until something
develops to bring buyers into Wall
Street. Weakness was more pronounced
in the last hour Of business than at any
other time in the day. Missouri Pacific
was the only important issue that showed
strength, its advance bringing forth a
rumor that a dividend would be declared
on the stock. though in well Informed
quarters it was thought the advance
had been engineered TO make a more at
tractive market for the convertible
bonds.
The position Of the New York Clear
ing House banks, as disclosed by Satur-
days statement, is far stronger than
reported a few weeks ago, the excess of
loans over deposits having declined TO
unimportant figures, while material i'm
provement has been brought about in
cash and surplus reserve holdings. Un-
certainty over the course Of affairs in
the rest of the year, uneasiness over
speculative loan accounts outside this
city and the imitation in various lines of
trade and speculation have been impor-
tant factors in inducing our bankers to
reduce loans and TO increase reserves,
and as a consequence Of this policy the
financial situation at this centre has
been strengthened substantially at the
beginning of a season when the needs of
the general business community may
make heavy demands upon bank re-
sources. Moreover, il is not improbable
that at no remote time the federal Treas
ury may come into the market for money
in spite of gradually increasing revenue
receipts. II liquidation in the commodity
markets continues and if the land specu-
lation in the West returns to a safer
basis additional strength will be injected
into the monetary situation, while with
lower prices for commodities our export
trade viii expand, a movement Of which
the country is sorely in need.
Sterling exchange was strong yester-
day and not far from the gold shipping
level, the advance being encouraged by
the difference between money rates here
and in London, and doubtless TO some eX-
tent by manipulation by interests that
expect TO become sellers of exchange
against sales of American railroad bonds
to Europe AS high as AZ per cent was
paid for call money at the British capital.
compared with high OF 3I2 per cent
here. While sterling rates were strong
and reflected an absence OF offerings
against bonds sold abroad, Paris ex-
change on London moved in a manner |
that apparently indicated the near COM
pletion of the international financing for |
the account of some of our railroads. |
Exchange in Paris on London is at the /
gold exporting point, and il is generally |
believed that shipments of the metal /
soon will be made from the French capi-
tai in connection with the sale OF Aneri-
can bonds at that centre on the so~ called |
triangular operation, which will make
London the beneficiary of the transac-