New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-17
FINANCIAL MARKET
Money Rates Firm, While ster,
limo EXCHANGE Advances.

Trading In stocks was made I'D almost
entirely Of the operations OF an unin-
portant professional element. with the
tendency of prices generally in the di-
rection Of higher levels. Outside OF q
few issues, however, no substantial
strength was shown, and at the close
there were few instances of gains
amounting to more than 1 point The
London market was not open, and the
local exchange might as well have sus-
pended business as far as commission
house transactions were concerned, as
with the exception Of several Of the
larger firms there were no signs of &C
tivity on the part OF the brokers rep
resenttng commission concerns. Reading
found enough followers to advance its
price 2 points, the movement being fol-
lowed by a revival OF the moth eaten
report that the second preferred would
be retired and that the company would
distribute some of its alleged concealed
assets to the owners Of the common
stock. Another May day story that had
the merit of being brand new was one
telling of Northern PacifiC's financial
needs and the intention of the company
TO put in q. bid for some Of the French
money that is supposed to be available
for the purchase OF our securities, and
with the proceeds TO improve its physical
condition and incidentally buy the Chi
cago Great Western A lower market
for wheat and encouraging crop advices
helped sentiment, but they failed to at
tract buyers. From a speculative point
Of view the stock market needs a leader
and the stimulus of some exciting de-
velopment. In the final transactions the
general market was somewhat more &C
tive than in the earlier dealings, but at
the expense Of prices
In spite OF the favorable showing
made by the Clearing House statement
Saturday there was no easing off IN
call money rates in yesterdays market;
indeed, the tendency Of quotations ap-
peared TO be in the direction Of frmer
levels though in banking circles the
idea Of materially higher figures IN the
immediate future was not Endorsed. The
associated banks hold reserve above
the limit Of cash TO be held against de-
posits of almost $22,00O,000, and the fact
that the large gain in the surplus re-
serve I'm the last few weeks has not
weakened the money market naturally
suggests that the substantial banking
interests are not in favor of runaway
bull stock market at the present time,
and that they have in mind considera-
lions affecting future monetary require
ments that induce them TO strengthen
reserves at this particular period There
is little demand from the Stock Ex-
change for call money just now,
doubtless for the good reason that the
prominent interests are doing practically
nothing in the speculative market, while
there is no demand from the public, and
the absence OF speculative activity IN
securities naturally makes the current
frmness in money rates the more i'm
pressive as a sign of future develop
ments, when heavy bank holdings may
be required.
Bank loans at this centre are not ex-
cessive and they are well secured, but
the same thing cannot be said OF bank
conditions in the West Sterling ex-
change was strong yesterday, and the
Street was considerable disappointed
over the absence of heavy offerings rep
resenting sales OF American securities
abroad. American railroad bonds al
ready bought by Europe and bonds that
doubtless viii be placed there at no dis
tant period will be paid for in install
ments, and exchange market offerings
against such sales will therefore extend
over long time and not come in bunch,
as spectators would like to see them
! IL IS encouraging 20 note that exports
of wheat are increasing and that for
| the last week shipments were heavier
than in the week before and in the cor
responding week in 1909. Our export
trade, however. viii have To increase 20
an enormous extent 10 offset growing
imports and our heavy financial obliga-
lions abroad. which some people APP
pareutly believe are of little moment az
| long as we can sell our securities 10 the
foreigners. In selling securities to
Europe we are borrowing indirectly at q
good price to pay our obligations 70
Europe, and ar the same time we are
STRENGTHENING ne hold Of foreiEn bank