New-York tribune., 1910-07-20

FINANCIAL MARKET
Sterling Exchange Firnler, While
Call Money Declines.

As rule. the stock market does not
remain in a conatose state for any
length of time. and traders therefore do
not look for many days Of the current
stagnation in speculation. Total opera
+ions Yesterday amounted tc only 2Z5,o'l
shares. made I'D almost entirely or the
transactions of small professional ele-
menr that did little on either side OF the
account. though at times efforts were
made to bring out stock without, now
eyer the slightest response from holders,
who apparently believed that in the ab-
sence of unfavorab1e developments the
next active movement would be IN the
direction Of higher quotations. Prices IN
the early trading showed fractional de-
clines from the closing OF the preceding
dav. while in the afternoon losses were
recovered. net gains being shown IN most
issues. Advices from the agricultural
section of the country reflected faVor-
h1e progress by the various crops. even
in the much damaged spring wheat
fields. Chicago reported the quality OF
winter wheat coming to market above
expectations. and from the South came
predictions of something better than a
normal cotton harvest. Prices for both
wheat and cotton declined, the weakness
In these commodities accounting in large
part for the covering Of shorts in stocks
in the final transactions The collapse
in the bull speculation in July cotton II
is 10 be hoped. marks the end of ab-
normal quotations for the product and
foreshadows a readjustment Of prices to
q level that will bring about healthier
conditions in the cotton goods trade
which at present is in an unfavoraole
position from every point of view. Ap-
uroximately two-thirds Of the business
in stocks was supplied by Amalgamated
Copper. Reading Union Pacific and
United States Steel. all Of which closed
at fractional net gains. Call money
touched H. per cent and sterling ex-
change rates were higher.
In the last half of the fiscal year ended
June 80 the local banks gained on their
operations with the interior more than
S36. 100000 in cash. Although receipts
week ago were heavily in excess Of ship
ments from this centre, the tendency Of
the domestic exchange market appears
gradually 10 be working against New
York. and according to the opinions of
the best informed bankers this city soon
will be compelled tc send large sums Of
money TO out-of-t town points as a con-
sequence Of demands in connection with
the financing Of the crops and for other
purposes for which interior institutions
will be compelled to draw on their bal
ances here The West IS in no condition
10 handle the usual late summer and
fall demand for money without calling
upon the East for assistance in spite OF
the more conservative attitude Of West
ern bankers in the matter Of loans and
the somewhat improved position Of re-
serves al various points II is therefore
fortunate that our Clearing House in
stitutions have materially strengthened
their holdings in recent weeks, and will
continue TO do so through loan liquida-
tion and imports of gold. Additional
engagements Of the metal for shipment
TO this country were made yesterday,
bringing the movement, with the gold
secured in the open London market on
Monday, to a $4,000 level. It is not
unlikely that as much as $30.O00.0o0 or
more VIII be brought in unless there
should be a radical change in interna-
tionaI money market conditions. In
! Chicago dispatch The Wall Street Jour
nal'' said yesterday that bankers at that
: point predicted higher money rates
throughout the West in the course of
the next few weeks. with a stiff level
/ for loans for months TO come. As many
! loans are being made at q per cent as al
> per cent in Chicago, and some bankers
/ expect a steady rise To per cent.