The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-07-07
MONEY borrowed
BY THE CHANGERS
Wall Street Explanation as to
the Cause of Depression
in Stock Market.
SMALL BANKS DRAINED
CASH FOR CROP MOVING MUSE
BE FURNISHED.
SMALL BANKS DRAINED

New York. July s.-Thcre was a dis
position today IN the financial district
70 tu=n to the banking and financial
position for explanation OF the stock
markets action. The Increased promi-
hence given to the subject Of the bank
ini. situation grew out OF the published
expressions OF some distinguished bank
Ing authorities Of the Interior regarding
the farm land speculation ana the con
sequences to De appreh ended from It,
The subject itself us not new oue,|
nor r. SIS Importance newly regarded
by New York bankers, since IL has Neen
dwelt upon for months and with special
stress since the abstract OF reports or
national banks under the last comp
tro.lers call IN March became known
disclosing a loan expansion In year
time Of half a billion dollars.
This 2 sciai stress on the subject has
kept alive conviction that the ortgi-
mol position was in course OF correc-
lion. That correction IS not maintained
by the interior banking authorities now
quoted. There Is complaint that the
smaller banks are still burdened with
mortgages and with farmers paper IN
Ftcad OF the usual Investments in COM
mcrcia1 paper which served as a sec
oudary reserve while their balances IN
the reserve banks are below norr1al.
Such a position indicates that the
crop movement requirements will have
40 be met 90 larger extent than usu-
al by calling on the larger banking
NNmNnFu Tor InnMfIIfII nnNNNWM. I ne ANAA-
nation that the reports now being sent
90 the comptroller. but not yet In shape
for tabulation. will not show the eN-
pccted Improvement In the credit POSI-
tion had a disturbing effect on sentt-
ment and was large factor In the ear
" crash Of prices today. some stocks
fen below last weeks low level, thus
establishing them az the lowest for the
year.
The Importance attached to the pros
pcctivc money condition left speculative
sentiment ready 20 be easily influenced
by tho reports that gold had been en-
gagged in FOR shipment 60 London While
the recent course OF foreign exchange
rates had prCsGgcd movement. the
days onga gemcnts came sooner than
was expected. Tho effect was TO stfffcn
tho prevailing discount rate IN London
and arouse s0ufe question whether the
official bank rate would be reduced to-
morrow as was expected IL Is not be-
lcved. however. that any determined
obstacle viii be opposed 10 the move
mont Of gold 20 New York
The return or money Is now consider
ably lower IN London than In New York
offering an induccment 90 place London
funds I'm New York.
The merchandise export movement
from this country has shown improve
ment and imports have fallen Or There
have been purchases OF securi ties In the
New York stock market for London ac-
count during the severe depression OF
the last few days. and these have helped
20 weaken exchange rates.
Tho decline in wheat and -orn helped
stocks. the strong rally I'm wheat OF
uufavorahlc weather predictions In thf
spring wheat region helping TO unset
tie the rally az the last. The esrly So
we're declines were more than rccov'
cred. however. and general net gaini
were retained az their closing.
Bonds were Irregular
Total sales. par value. S2.071.000.
United States bonds were unchanged
On call.
NEW YORK STOCKS.