New-York tribune., 1910-08-19
FINANCIAL MARKET
Currency'NoW Moving from New
York to Southern Points.

days market because large number of
speculators decided to take profits on ac-
counts accumulated at lower levels, and
because of the absence Of an active buy
ing demand. The realizing movement
naturally attracted selling pressure from
floor room traders, but it failed to bring
out investment offerings, while there was
no evidence in the character of the bust
ness that the substantial interests which
took over the Pearson-Farquhar stocks
in July and stocks Of overloaded pools
and individuals had securities for sale at
the figures quoted. Wall Street ad-
vanced many weird reasons for the
losses Of point or more in the prom
inent issues but outside of technical
market conditions there was nothing in
general news developments that war
ranted transactions for lower quota
tions, except, perhaps, the strength In
the foreign exchange market and the un-
favorable position this country occupies
at present in international trade. Our
adverse foreign trade situation. however.
is minimized, so far as the money mar
ket is concerned. by the heavy bank re-
serves at this centre. Moreover, 1t is
not unlikely that in the course of the
next few months the European demand
for our food products and cotton viii be
large enough to bring about q material
temporary decline in sterling rates
In connection with the current foreign
trade situation and the customary in
crease in the supply of commercial bills
= In ha fol Of ha
year, and the willingness of London to
lend US gold when we need it or to ship
the metal TO this side when it may be
more profitably employed here than
abroad. it may be well to bear in mind
that the United States is not in a posi-
ton on trade account to draw gold from
London. and that it Will not be able TO
interfere with shipments of gold to Eu-
rope when the metal may be required
there until our currency system is estao-
iished on a modern scientific basis Inc
weekly return of the Bank OF England
shows a high percentage of reserve 10
liabilities. but from now on until the la'e
autumn the movement of money VIII De
against the British capital owing TO the
same sort of demand that develops III
o,,r own money market at this season OF
tho 1,aar Price movements in the COM
mo5ity markets yesterday reflected bet
ter weather conditions on the FARMS ahd'
in the case of wheat, heavy receipts at
Western points and an absence or an ac-
tive EXPORT demand. Wheat Is at prlce
level that ought to encourage heaVler
shipments 10 foreign ports. especially as
= considerable shortage in this years
European harvests is predicted. Inc
General market closed heavy, though
,,ricas were somewhat above the lowest.
Preparations are being made for the
active financing OF the cotton crop, and
so far in the current week the SUD
Treasury has transferred for the &C
count Of local banks S6oo,poo to New
Orleans Now that the uncertainty over
cotton bills of lading has been cleared
I'D bv the decision of the railroads 10
issue valuation certificates with order-
notify bills. shipments of cotton to
tide water doubtless viii show marked
increase after September ], accom-
nanied by expansion in the export trade,
in srjte of the relatively high prices pre-
vailing for the staple. In order 10 sale
e,,ard cotton bills against the possibility
Of nanipulation by shippers. which was
alleged to have taken place last year,
and for which the transportation COM
NAMES were In no way responsible. or
der-notify'' bills beginning on Septem-
her will carry a signature certificate
signed and attached on behalf OF the
r.,ilv,a., con1pany by a valuation officer,
who VIII guarantee that the agent sign
ing the bill Of lading is the regularly
authorized representative of the COM
many. Furthermore, no agent will be al
lowed to sign bill OF lading until the
cotton is actually in the possession Of
the railroad, the practice of issuing bills
before the delivery OF the cotton being
responsible last year for certain irreGu-
Iarities which caused an announcement
from foreign bankers that they would
not discount American bills OF lading
without a guarantee by al American
bank. Local bRnkerE have refused 10
guarantee the bills, but Il is believed
that with the Validatiou certificate at
tached the bills viii ne accepted abroad
until Uniform laws can be passed in the
United States placing the liability for
fraud where il belongs.