New-York tribune., 1910-01-09
FINANCIAL MARKET
BANKS GAIN CASH.
Buying Of U. S. Steel En-
courages Covering of Shorts
Throughout the List.

Il If OUGHOu tHC xLtCGs
On a moderately active volume of
business prices for securities showed
irregularity, with the final movement
in the direction of higher levels as a
consequence of covering or shorts and
some fairly heavy buying by substantial
interests. Strength in United States
Steel common apparently convinced
traders that the people who were re-
sponsible for the great advance in the
issue last year, when the quotation rose
from Al to 94N. again We're active on
the bull side of speculation, though
there was no particular evidence that
efforts were being made to establish
quotations at materially higher range.
There is a large amount of stock for
sale, however, at higher prices, and If
monetary conditions become propitious
for bull operations it is likely the public
will be invited to come into the market.
Rising quotations generally tempt the
outsider, irrespective of the level at
which prices may be ruling, and the
fact that the current year doubtless
will be a period of large profits in
business circles naturally encourages
many commission houses in Wall Street
to express bullish views over the pros
poets of an aggressive buying move
ment on the Stock Exchange in the
course of the next few months. Some
houses, nevertheless, hold the opinion
that prices for securities will have to
be readjusted to a cheaper level before
the public can be attracted.
Wall Street is taking a more opti-
mistic view Of the Presidents recon-
mendations to Congress on legislation
affecting corporations, and it believes
with considerable reason that the enact
ment into law of the Presidents ideas
will create greater confidence abroad in
the stability of American investment is
sues and lead to larger purchases of our
securities for foreign account. This
view of the situation may become some
thing of a factor in the near future in
inducing heavier speculative purchases,
and if the belief that foreign capital
will be attracted to this market should
be accompanied by an actual expansion
in European investments here our for
eign exchange market would be sub
stantially benefited and the drain upon
our supply of gold would be checked.
In view of this country's unfavorable
foreign trade situation as regards ex-
ports of merchandise an increased
movement of foreign capital into Ameri-
can enterprises would be a most desira-
BILE development. High prices in this
country provide good market for the
sale of foreign merchandise and a poor
market for purchases of our staple
products, a reflection of which is found
in increasing imports and dwindling
shipments of food products and cotton.
Clearing House figures for the last
week giving the condition of the asso-
ciated banks at the close of business on
Friday night, made a favorable exhibit,
showing a large gain in cash and re-
serve holdings, the latter increasing
S11 1,O6O, 125 to $14, ,549, ,225, which COM
pares with a decrease in the statement
of averages of $1,422, ,S75 to $4,765,32
against 500, ,692 $50 at this time last year
and S6.0S4.050 in 1908. The average
statement included a part of the opera
tions incident to the financing of the
January disbursements. while the actual
figures showed the return of these pay
ments to the banks and the movement
of currency from the interior attracted
by the advance in local loan quotations.
Loans continue in excess Of deposits and
average cash holdings are $62, ,756. $50
less than reported a year ago. The
trust companies and banks not report
ing to the Clearing House presented a
decrease In loans last week of $19,644,
900 and an increase In cash of more
than $2,OOO,OO0.