New-York tribune., 1910-08-12

FINANCIAL MARKET
Little Demand for Money, Either
on Call or Time Contracts.

ket We're light in volume, on a move
ment of prices that showed great irregu-
Iarity with small net losses in the
larger number of issues at the close
Commission houses were not important
factors in the dealings, the chief part of
the business originating on the floor Of
the exchange, and representing little
more than swapping operations between
Unimportant traders, except in Ameri-
can Smelling, against which substantial
outside pressure was brought to bear
and in Reading, Union Pacific and
United States Steel. In the issues
named efforts apparently were made to
induce genuine liquidation, but offerings
We're light, while on the declines Ger
tain amount of buying was reported for
the account of substantial interests. Al
though banking interests in Wall Street
are not in favor of an extended specula-
ton on the bull side of the market at
the present time, they evidently are not
disposed to lend any assistance to in
significant traders who are anxious to
create a bull panic.
Strength in the wheat market natu-
rally encouraged the room element to
work for lower prices, particularly as
distant options on the Chicago Board of
Trade and on the local Produce EX-
change showed unusual firmness, the
advance being helped by adverse reports
of crop conditions abroad, which, coupled
with the unfavorabie position Of spring
wheat in the United States, afforded
sufficient reason for pessimistic opin-
ions in speculative circles regarding
the ability of this country to handle
the shortage in wheat here and a
possible shortage abroad. In spite Of
SPECTATORS expectations OF higher
prices for grain, it is interesting 10 note
that grain receipts at Western points
are heavy. Weakness in American
Smelling was not accompanied by
DEVELOPMENTS affecting the American
Smelling and Refining Company, though
the argument was advanced that the
curtailment in the production of copper
would cut into smelling companies earn
ings The declaration Of the regular
dividends on Union Pacific and Southern
Pacific stocks. record breaking earnings
reported by the companies for the last
fiscal year and the increase shown by
the st. Paul and Missouri Pacific in net
returns for June had little effect upon
the general market, serving, however, to
bring about a firmer tone in the prices
Of the stocks concerned.
Although the statement of exports of
domestic products from this country in
the last month is not calculated to in
snire confidence in the theory that for
eja71 commerce conditions are changing
materially in cur favor, it should be
borne in mind that shipments OF food
products and cotton. as a rule, are light
in .JuIy. and do not furnish a basis upon
which 10 calculate the movement in the
rest of the wear. And in the case OF the
current Door exhibit, additional reason
for small exports is found in the passing
slack demand abroad for our grain ana
cotton and the high export prices in TINS
country. OF course. if we are to have
short crops. prevailing conditions IN the
export trade will continue, but from
present indications the United States
will have q fair exportable surplus to
meet the dwindling European supplies
and deficiencies in foreign crop yields.
While at the moment the tendency OF
the foreign exchange market is to work
to a firmer level, it is possible that Ster-
ling rates may be kept within the range
Of the gold importing level by European
btyine of our securities and an earlier
movement of commodities to market
than was reDorted last year, owing to
the possibility that the Western banks,
as result OF their heavy loan accounts,
will be unwilling to extend acconinoda-
ton on grain and cotton TO peoplc who
NAV wish TO hold these commodities IN
The expectation Of higher prices If this
should lie the case Il large supply OF
commercial bills soon should appear in
the exchange market. Fortunately,
bank reserves at tins centre are SO large
that the necessity for heavy imports of
the yellow metal is not apparent. Just
now there is little demand for money
here or at outside points. The Bank OF
England in its weekly return published
yesterday showed proportion of re
serve to liability Of Jl.05, which is E-24
per cent above ten-year average for
this period.