New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-20
FINANCIAL MARKET
Call Money Easier and Sterling
Rates Strong.

Transactions in Yesterdays stock mar
ket amounted to 21S,925 shares, against
81, 800 in Wednesdays operations, with
the larger part Of the business in the
metal issues. Union Pacific and Reading
Prices, as q rule, were strong, and
showed net gains in al the prominent
securities, advances being brought about
easily enough to suggest strong tech
meal position and q. sharp upward
movement in the event Of the develop
ment of some especially favorable factor
with distinct bearing upon the stock
market. At the moment the majority OF
traders are afraid to take g decided
position Oh either side OF the speculative
account, but it is worth noting that peo-
Die who actually want stocks can only.
get them in small amounts without ad-
vancing prices materially. The So
called public was no more Of a factor in
the days speculation than it was in the
market OF the preceding Gay; neither
did the foreign houses take any interest
in the movements, trading on arbitrage
account being lighter than on any day
IN MANY years. Investment buying was
almost at 2. standstill, both on the Stock
Exchange and over the counter, and SEN
tinent among the bond houses was ex-
tremely depressed over the continued
absence of demand for the mortgage
issues, with which most firms are heaT-
lily overstocked, and which promise to
suffer from congestion until there Is
more capital available for this form OF
investment security. No announce
ments were made Of the progress of the
negotiations for the placing Of new
American railroad bonds abroad. but the
more cheerful feeling in speculative
quarters as reflected in the covering OF
shorts and the bidding up Of prices was
based in large part on the belief that
something definite regarding the prog
ress of such negotiations would be made
known. Weakness in the wheat and
cotton markets also contributed to. the
strength in stocks. The directors Of the
Brooklyn Union Gas Company declared
a quarterly dividend of ~ per cent
Yesterday. and it was said in well in
formed Street quarters that in the
autumn the rate would be raised to 10
per cent basis
The stagnation in the stock market
was reflected in an easier tone in call
money rates. the high point, at 31s per
cent, comparing with high Of per cent
in the preceding day, while in the time
department loans Of short n1aturities
were ouotably lower. In view Of the
relatively strong position Of bank re-
serves and the prospects that tO-mor-
rows bank statement will show further
Improvement as compared with a week
ago. it does not appear probable that
money market quotations can be main
tanned at the present level unless the
trading in stocks should develop greater
activity of sterling exchange advance to
the gold exporting level Demand ster-
ling was strong yesterday under the in
fluence Of an unusually heavy demand
for remittance for that period Of the
week. and foreign bankers figured the
gold shipping point only slightly above
the high rates reported, although they
old not predict a resumption Of exports
Of the metal. owing to the belief that
substantial offerings of bills against
American securities sold abroad soon
would appear in the market That the
Bank of Englands 4 per cent minimum
rate Of discount has not been effective in
preventing shipments of gold from Lon
don is reflected in the Bank Of England
return showing q material loss on bal
ance in its bullion and reserve holdings
In spite Of this loss the British institu
ton presented proportion Of reserve to
liability of $3.50 per cent. which is bet
ter than reported at this time in many
years. London money rates yesterday
were higher than they were in this mar
ket, the strength in call loans being
especially pronounced. The London
markets will be closed to-day, owing 10
the funeral OF King Edward, and the
local Stock Exchange win not open until
i O'Clock for the same reason.