New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-27
FINANCIAL MARKET
Local Banks Are Losing Cur
renew to Interior Points.

4 traders market prevailed on the
Stock Exchange throughout the five
hours Of business, prices as a rule NOV
ing in the direction Of higher levels. The
advance was no more significant of any
change IN general conditions than was
the decline recorded in the operations Of
the preceding day, the upward move
nent representing little more than COW
ering Of short contracts, helped by the
apparently oversold condition of the gen
ersI list and by more favorab BILE advices
from the corn belt regarding weather
changes. Speculation was inactive from
beginning to close. extreme dulness be-
ing especially pronounced in the trans
actions from l. o'clock to O'clock
when the total sales of stock amounted
TO only %. 800 shares. and the sales Of
bonds to q par value OF only $4,000 a
new low record for two-hour dealings on
the Stock Exchange. A week ago there
We're signs of improvement in the bond
market, but in the last few days there
has practically been no demand on the
exchange for mortgage issues, although
bankers have met with some success in
disposing Of new offerings at private
sale United States Steel, Reading
Union Pacific, American Smelling, A1ch-
! ison st. Paul, Southern Pacific, Chesa-
peake q Ohio and Amalgamated Copper
/ showed substantial maximum and net
/ gains on light trading, the advance.
! however, failing TO attract an outside
/ demand. Among banking houses there
| is no expectation OF the development of
public inquiry for securities for specu-
/ Iative account in the immediate future,
and no efforts are being made to encour-
! age aggressive bull operations. 1t is
not a good time OF the year for a bull
campaign. Money. politics and railroad
rates present problems that do not favor
operations for higher prices on borrowed
funds at present. The market closed
strong.
I According to the known movement of
money in the week the local banks have
/ lost upward Of 81 100000 in cash hold
/ ings. owing 10 shipments OF currency to
out-of-town points and excess payments
on their operations with the Sub-Treas-
ury Interior receipts were relatively
light. while shipments were heavier than
recorded in recent weeks, the demand
! for funds being especially active from
1 the South and for Canadian account,
the inquiry from Montreal and New Or
/ leans suggesting a material increase in
the amount OF Withdrawals from this
! centre in the course OF the next few
weeks The outward movement to these
points in the last six days, as shown in
the estimated loss suffered by our banks
does not include $4,000 taken yester-
day for the account of New Orleans and
/ $500 600 for Canada, although these two
items will be shown in to-day's actual
exhibit of the Clearing House insJitu-
! tons. Receipts Of money continue to
I come from nearby points. Domestic ex-
! change at Chicago. st. Louis and New
! Orleans is running against New York,
and although Western and Southern
! bankers assert. as they always do at this
period OF the year, that Eastern money
( Will not be required in connection with
the financing OF the crops, as much, if
not more money viii go from New York
- interior points this fall as in years
gone by To be sure, the money is not
actually owned here. but banks at other
cities will withdraw their balances from
their New York correspondents and pay
their obligations 10 the federal Treasury
by drafts on this city, which means
| big reduction in cash holdings at the
banking centre of the United States.
The local demand for money is mac
tive There is little business in any de-
partment of the market. and in spite
of interior Withdrawals and poor chances
. OF securing gold from Europe the pros
poets OF d money market squeeze are
not promising. II Is not unlikely that
to-day's bank statement VIII show a de-
cline IL the reserve above legal require
ments, which last Saturday stood At
more than $4,000 600 an amount sell
dom exceeded or equalled at this time Of
the year. Sterling exchange was easier
yesterday as Z result Of lower discounts
II London.