New-York tribune., 1910-07-17
FINANCIAL MARKET
Bank Statement Shows Heavy
Gain in Cash and Reserve.

Stock market prices moved in an ir-
regular manner throughout the two hours
OF business. more net losses than gains
prominent shares Transactions were
made up almost entirely of the opera
tions Of the professional element. COM
mission houses having few orders for
public account. while the larger hnan-
cial interests paid little attention TO the
course Of speculation except to offer
support on appearance of bear pressure
Although there are some market OBJ
servers who are inclined 10 believe that
liquidation has not Yet run its course
and that after week or so there VIII be
a resumption Of the movement, conser-
vative bankers are advising their friends
and customers TO invest their idle funds
in securities al prevailing levels owing
70 the attractive income yield that may
be secured and to the improba bility OF
the development of any factor that
would have more. than q passing infio-
ence upon the country's business. Our
industries show irregular tendencies, and
in many lines demand is under the ca
pacity Of the producers. with the outlook
favoring relative dulness until the out
come Of the harvests is definitely known
but there is nothing in the situation that
indicates weakness in general funda-
mental conditions and nothing upon
which one may predict disaster in the
course of the next twelve months.
We are not going through a period Of
- as-vl,s tor. N
volume than it was earlier in the sea
son. but measured by payments through
clearing houses and by gross railroad
earnings distributive trade is far from
7Insa tisfactory. as investment stocks
are cheap at current prices Prices, OF
course. may go lower but there is just
as mach chance of a material advance,
with the low points Of q week ago mark
ing the low figures Of the year. Stocks
are in strong hands, and while there are
uncertainties in the situation, including
the crops, the fall elections and the I'M
rJortant corporation cases pending IN the
Supreme Court, TO the minds or many
market observers these factors nave
been adequately discounted by the e1-
tensive decline that has been recorded
in rrices in the last eleven months. The
beaviness in the general list yesterday
was helped by the Pennsylvania Rail
road labor situation and, until 1t was
officially denied, by the report that the
Secretary of the Treasury would advise
national banks TO form national cur
rencv associations in order TO be pre-
pared to take advantage of the Prov
sions Of the emergency currency law IN
the event Of money stringency in the
autumn. The suggestion that there
might be need of emergency currency
naturally was not liked in speculative
quarters Bankers do not expect any
disturbance in the money market, and
they have little use for the emergency
currency law, with its excessive tax on
circulation.
Bank statement figures showing the
actual position of the Clearing House
institutions as of Friday night do not
suggest the imminence of disturbance in
money. while they reflect the wisdom OF
our bankers in strengthening their re-
sources to meet the fall demand for
funds and possible emergencies. Re
serve above legal requirements increased
s14.151. .225 to $50. 49o, ,325. due TO a gain
in actual cash of more than S14Up.Up
and TO q heavy contraction in loans The
exhibit compiled on the average system
also showed a big expansion in reserve,
which now stands at 81. 142 63U, against
s34, ,J69, 200 at this time last year and
So. rs. 400 in 1908. Including the loans
IF the trust com Lanies and banks not
reporting 10 the Clearing House, there
has been a reduction in that item in the
last two week. of moro than S7o-tpo.tso.
Loans. how ever are still slightly in ex-
cess Of deposits.