New-York tribune., 1910-07-24
FINANCIAL MARKET
Banks Show Heavy Gain in Cash
and Reserve Holdings.

Bear pressure and commission house
LIQUIDATION for the account OF specuia-
tors Of minor consequence continued III
the early dealings Of yesterdays stock
market, the movement being accom-
panied by maximum losses Of point or
more In the prominent issues. At the
low levels support developed through
out the list. and. while no aggressive
effort was made to bring about higher
prices the character Of the buying sug-
gested that the larger interests are not
disposed to permit speculative demoral-
ixation at this period. The gradual elm
ination OF insecure accounts Is desirable
In banking circles no announcement Is
given TO the theory that as the market
has been through long period OF liqui-
dation, with current quotations at about
the lowest of the year, a bull campaign
In warranted this summer. but 1t may be
well to note, nevertheless, that the bank
Ing interests are heavy holders of stocks
bought at cheap figures. and are quite
optimistic over the future Moreover.
they are advising the purchase Of solid
securities at current prices for invest
ment account on the well founded belief
that there is nothing fundamentally
wrong with the general situation, and
that after the crops have been gathered
and the autumn needs Of the mercan-
tile community have been taken care OF
the people at large will wake up to the
fact that intrinsic values are increas-
ing.
Apparently there are some people who
believe that passing setbacks to trade
expansion spell industrial panic Further
liquidation In all markets would
strengthen the underlying situation. and
It is not unlikely that q read1ustment
along this line will take place before
notable improvement is recorded in the
business and financial markets. As far
ready has been extensive. Investment
issues may be bought to return a most
satisfactory income. but this fact does
not justify speculative buying on bor-
rowed money unless unusually heavy
margins are provided. The selling
yesterday was we'll handled and gauged
to the markets absorptive capacity.
The rally that followed the initial de-
cline did not discourage bear activity,
as In the last hour further weakness de-
veloped. flnal prices being at or near the
lowest of the Gay. The average price
for the leading railroad and industrial
shares made a new low record for the
year.
Through the addition Of more tl-an
S16,OO0,OO0 to their cash account the
local Clearing House banks added sub
stantiel sum to their reserve holdings in
the week just closed. actual figures as
of Friday night showing an increase in
the reserve above legal requirements of
S12.329.2 .275. bringing that item to $46,-
019, 600. while the average reserve In
creased s13170.775 to s40313,775.
against S34, ,291, ,225 at this time year
ago and s56,516,25O in 1908 In the
statement Of averages loans decreaced
S6 013,oO0, with the actual exhibit pre-
senting only slight contraction. De-
posits are now well in excess OF loans,
and the general position of the banks is
one of great strength a. time when re-
sources should be heavy In order to meet
the requirements that soon will develop
in connection with the financing Of the
crops and autumn trade.