New-York tribune., 1910-10-04
FINANCIAL MARKET
Low Bank Reserves Cause
Hiuher Money Rates.

Foreign houses took advantage Of the
rise in local stock market prices yester-
dav TO sell more than twenty-five thou
sand shares on balance but their opera
tions were without effect on interests
which apparently have made up their
minds that technical and other condi-
tions are in favor of higher quotations.
There was something in the nature of
a roundup of the shorts. but the move
uent failed to attract an encouraging
volume of public buying. in spite of the
philanthropic efforts of various COM
mission houses to point the way to the
accumulation of fortunes. There was
too much manipulation i'm the movement
TO make il a convincing indication or
the development of a sustained advance,
while there was too much uncertainty
over the immediate future of the money
market to induce speculative buying by
conservative operators. A large amount
of stock has been sold in recent days by
holders who have been anxious to con-
vert paper profits into cash, and any
further advance doubtless will bring out
similar offerings but IT hardly appears
probabIe that the chief holders Of stocks
will attempt to liquidate at prevailing
prices except on the theory that quota
titons will move to materially lower
level before an important bull campaign
can be successfully launched.
While large speculative interests are
showing Indifference to monetary con-
ditions. the situation in the money mar
ket calls for extreme caution at this
particular period and does not warrant
an outbreak of heavy speculation on
borrowed funds. In the early part OF
August the reserve of the Clearing
House banks at this centre stood in ex-
cess of 500. 100000. In Saturdays state
ment the actual reserve as of Friday
night was 81 ,9S1, $50, with loans up
ward of S15,000,000 larger than de-
rosits. An increased demand for loans
for speculative purposes at present will
be TO the accompaniment Of much higher
rates for accommodation and stringency
in the market that might lead TO serious
financial disturbance. Call money yes
terdav was lent as high as 3 per cent,
with few offerings of time funds for over
the year under per cent and with
every indication pointing TO increasing
firmness in both departments of the
market. The fact that better demand
for bonds from investors has developed
is not a good reason for buying stocks
or, margins when the banks are not in a
position safely to finance such opera
tions.
A large proportion of the dealings were
supplied by a few stocks, chiefly the
Hartman issues, Reading, United States
Steel. Chesapeake & Ohio and Amaiga-
mated Copper. Northern Pacihc and
81 PauI. which have been inactive feat
ures for many weeks, also developed
moderate activity. The small fry
bought on the argument that the sub
stantial interests had the market well
i'm hand and would not allow IT to so
down. but on the advance there was
some excellent selling from quarters
where il was supposed that nothing but
l.uu operations were under way. I'm
! favorable factors failed to restrain bull
enthusiasm, and the governments re-
port on cotton presenting percentage
condition Of 500. a loss of o. i'm the
month of August. received but scant
attention, although the Cotton Ex-
change prices for futures advanced 1ol-
| lowing the publication of the ngures
This country will not have a large cot
ton crop. but an offset i'm part viii be
| found in the good prices at which for
eigners will be compelled to buy the
/ staple from us II will require, how
ever. enormous exports of domestic
products and Of manufactures to re-
store the balance OF trade to our ac-
count. Higher copper metal quotations
and q marked reduction in the visible
supply abroad helped the copper issues.