New-York tribune., 1910-09-25
FINANCIAL MARKET
Banks Show Further Decline in
Reserve Above Legal Limit.

Stock market prices presented irregu-
lar tendencies in the two hours Of trad
ING final quotations showing unirn-
portant changes, with small net gains IN
the larger number of issues. Union "a
ci1c and United States Steel were among
the few shares that ended under FIJI
DAYS closing figures. Further activity
was reported in the local traction stocks,
and what was called good selling took
nlaca in Interborough- Metropolitan pre-
ferred under cover Of the strength IN
BROOKLYN Rapid Transit. although the
movement failed TO carry the issue be-
low the preceding days final. There mas
been a good class of selling in the Inter
borough Metropolitan shares in recent
days. and the idea that the preferred
stock is soon to return 10 the dividend
list should be taken with several grains
Of salt. as there is nothing in the attl-
tude Of insiders that warrants such
belief The future OF the traction situa-
ton in this city, however, contains ele-
ments of promise. Commission houses
were not active factors in the dealings,
and in spite Of the encouraging advlces
sent out by various firms the public
showed no inclination TO come into the
market. while there was no indication OF
the development in the immediate future
Of an aggressive bull leadership. some
thing Of which the market is sadly in
need. The time is not ripe for active
bull operations. but the foundations are
being made for such a movement, al
though the real start may be from
lower levels when current uncertainties
over politics and railroad rates have
been eliminated from the situation. The
market FOR railway mortgages continues
TO show growing interest on the part Of
people who have idle funds on hand.
Bank statement figures, showing the
condition Of the Clearing House institu-
rions at the close Of business on Friday,
present much smaller loss in cash than
indicated by the estimates based on the
known movement of money, the discre-
pancy being due 70 over the counter Op-
erations not included in Fridays pre-
liminary figures Loans showed a mod
crate increase, while the reserve above
legal requirements declined So, 792 $50
TO S17,5T6,225. which compares with an
average reserve Of S18.S245 525. against
S9.ST1,425 q year ago and S50,039, $50 in
1905. Loans and deposits about bal
anCe, and II this connection il is inter
esting to note that since August ! Clear
! ing House bank loans have increased a
little more than So. .0Oo0 900, without the
/ accompaniment Of activity in the specu-
/ lative markets, the expansion being due
/ II large part 70 syndicate operations, TO
/ the taking over Of out of town bank
loans and TO actual borrowing AT this
I centre by the interior. If the local re-
serves continue TO decline in the next
/ lew weeks in the same proportion as re-
I ported IN recent weeks we soon will
/ have higher money rates in New York
IN spite OF the light demand for accom-
modation from Stock Exchange sources.
! sterling exchange is stronger. with cur
/ rent indications pointing TO firner rates
I Ia the immediate future as p consa-
J quence OF October interest and dividend
! remittances, the coming maturity of
finance bills and the demand for ex-
change against New York revenue honds
I mat faH due in London on November I
Ihe prospects Of this country drawing
gold from London this autumn there
lore are not promising, especially as
! foreign discounts are tending toward =
( higher level