New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-02-11
FINANCIAL MARKET
BANKS LOSE CASH.
Stocks IN Far Demand for In
Testment account.

Transactions IN yesterdays stock mar
lzst were moderately heavy in volume on
2 movement Of prices that showed great
irregularity, with final changes at small
net gains in the larger number OF issues
Higher quotations fer American secuTi-
ties in the London market encouraged
firm opening here, and IN the first two
hours Of trading the general tendency
was in the direction of better levels,
though subsequent reactions offset most
Of the Improvement. The early afternoon
decline was followed by periods of alter
nate strength and weakness, last quota
tons being we'll above the lowest, but
materially off from the highest. The
pnbiic was not much of q factor in the
dealings. Further investment buying,
however, was reported, the movement
Including such stocks as Chesapeake &
ohio and Norfolk 6, Western, also the
convertible bonds Of the Norfolk &, West
ern property, which were among the
most active features in the bond de-
partnent In the general course Of
speculation in the day there was eVl-
dence Of selling by interests who bought
stocks on the recent decline TO prevent
decentralization while there We're lndlca-
tons OF liquidation by operators who
were badly frightened in Mondays break
and who reached the conclusion at that
time that they would take advantage Of
the first good opportunity to let some one
else have their holdings.
A statement by the president of the
Chicago. Milwaukee 6, st, Paul Railway
that there was d tendency among mer-
chants in the West to cancel orders for
goods for spring delivery, owing to
feeling Of uncertainty over the future
was responsible for the selling pressure
noted in the first part of the afternoon
Bear operators assumed that if mer-
chants were cancelling orders trade re
action was about TO develop, but IN the
reports 10 the commercial agencies and
in the official report of pig iron pro-
duction for the last month there was
little u substantiate pessimistic utter
ances. Active speculative buying was
reported IN Rock Island common for local
and London account, to the accompanl-
ncent Of a revival of the rumor that the
dend column in april. There IS some
reason 10 believe that dividends VIII be
resumed on the issue this year but 1t
apparently Will be many a long day be-
fore the common enters the investment
class. Third Avenue was hammered by
the bear element Union Pacific and
Steel common closed fractionaIy down
from Wednesday.
While money rates at this centre are
at a relatively easy level, they are higher
than quotations for funds at the Euro
pean capitals, and as a consequence or
this difference foreign capital can be
profitably employed in the local market
Sterling exchange reflects such move
ment, which is accentuated by falr IN
yestment demand here from foreign
operators in securities. Both the Bank
az England and the Imperial Bank of
Germany reduced their minimum rates
Of discount yesterday. the Beriln rate
going 10 4 per cent and that Of London
TO 3 per cent, a decline Of y Of | per
cent 10 each case. The weekly return or
the Bank Of England showed proper
ton Of reserve TO liability OF 5l69 per
cent. which compares with an eight-year
average for this period OF 1886. Lom-
bard Street has been paying off loans.
and it is quite probable that in order TO
sustain its present rate the Bank Of
England viii be compelled TO borrow in
the open market. Local bankers do not
ICol for a further decline in money here.
while they believe that there soon will
he enough of an increase in borrowing
against speculative commitments in the
stock market and in the mercantile IN
ouiry for accommodation TO bring about
a much hrmer tendency. According 10
The known movement Of money in the
current week the banks have lost more
than $4,000, 900 in cash holdings. due
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