New-York tribune., 1910-10-02
FINANCIAL MARKET
Heavy Loss in Cash and Reserve
Holdings of Local Banks.

Stock market trading closed this week
with the average price for the leading
railroad and industrial issues in the
neighborhood of two points above the
final figures of week ago on a totai
volume of dealings that showed an in
crease of 263, 600 shares for the six bust
ness davs. The slight enlargement in
speculative transactions was not accom-
panied by a material increase in public
interest in the market, although in the
bond department buying for outside ac-
count was more active. with indications
pointing to growing investment demand
both on the exchange and over the coun-
ter. In yesterdays brief session prices
maintained the strength shown on the
preceding days of the week. and while
trading was confined TO small totals,
with the larger part of the total supplied
by Amalgamated Copper. Chesapeake q
Ohio, Reading. Union Pacific and United
States Steel, stocks were quickly ao-
sorbed on all recessions. Net gains were
small. On a light but good demand Man
haitian Elevated moved UP l point, ana
considerable animation was reported in
Amalgamated Copper, the latter appar-
emily being taken by operators who are
fully aware of the improvement under
way in the statistical position of the
copper metal market There is nothing
surprising in the buying Of Manhattan
which is selling under fits actual worth
but it would be surprising IL the issue
should fail eventually to sell at an eX-
tremely high level The whole invest
ment list is destined for higher prices,
although the next bull movement may
start from lower quotations.
Money market conditions are not IN
favor of a bull movement at this period.
Current signs point to much higher rates
for funds and efforts to bring about an
active speculation for higher prices just
now will be attended with the danger OF
acute disturbance in financial circles,
owing to the low position of local Clear
ing House bank reserves, which now
stand at only s4,9S1, $50. This is re-
duction of a little more than S5OOOO,000
since the second week in August The
exhibit showing the actual position or
the banks as Of Friday night is distinctly
bad, and presents bank situation that
is far from strong, especially as loans
again are in excess Of deposits. The
estimated movement Of money in the
week. based on bank operations with the
government and with the interior, fore
shadowed a decline in cash Of more than
s11. 900, 900. while the actual loss was
SIS. 299, 500, rejecting heavy over the
counter Withdrawals. OF course the
statement was complicated to some eX-
tent by preparations for the October dis
bursements, but the fact remains that
the reserve above legal requirements is
rear the vanishing point at time of
the year when the crop financing move
rnent is in full swing, when the pros
poets point to the New York banks being
compelled TO finance the cotton export
movement and when we have no credits
abroad upon which to base gold imports.
Loans were reduced s7.3s2.000 last week,
and II is quite probable that drastic
liquidation will have to be enforced. The
higher rates for money in the week were
reflected in an increase in trust company
loans bv more than 100000.