New-York tribune., 1910-08-13

FINANCIAL MARKET
Local Banks Add More than
S6.OOO.OOO to Cash Resources.

The general course Of the stock market
Yesterday suggests that the substantial
Wall Street interests are not opposed to
an orderly advance in prices and are
willing TO encourage such a movement,
but the volume of current business is
not large enough to create the impress
sion that aggressive bull operations are
contemplated. Total sales in recent
days have been small. and from present
indica tons the market viii remain a
traders affair until various uncertain
ties in the situation develop to an extent
that will warrant active transactions,
either for the advance or for the decline.
After a certain amount Of hesitancy in
the early dealings prices moved toward
a higher level. with the chief maximum
gains among the prominent issues in
AmaIgamated Copper, Reading, South
ern Pacific, Union Pacific, United States
Steel and American Smelling, the last
named recovering for a time quite
sharply from its initial weakness on
buying that induced rapid covering
movement on the part of spectators
who had been selling the issue on un-
founded reports regarding the position
of the American Smelling and Refining
Company. There appears to be no basis
for the rumer that the dividend will be
cut
Commission houses were not active
factors in the trading, except to small
extent for the account of Western specu-
Iators who appeared to be sellers. There
49, IL
bulIish on the country's industrial
future has tied itself up in speculative
commitments to an extent that will COM
pei it to be a seller of stocks in this
market for some time to come, and the
fact that prices are much higher than
they We're a few weeks ago encourages
the belief that liquidation for Western
account viii be a feature of all advanc-
ing markets in the immediate future
Little investment business was reported
in the course Of the DAY. TRANSACTIONS
in bonds have declined to unimportant
totals. and outside of the semi-specula-
tive issues practically no demand is
noted. in spite of the attractive levels at
which high grade investments are SELL
ing. When liquidation extends to other
lines than securities the bond market
will come into its own. The general
market was strong in the last hour, with
final prices at or near the best or the
dav. Copper shares reflected the I'M
proving position of the copper trade.
On the known movement Of money IN
the week the local banks have added
substantial sum to their cash holdings
from their operations with out-o1-to"n
points and from receipts Of gold on AS
saw Office checks. The so-called interior
gain represents in large part receipts
from nearby towns and cities, domestic
exchange at Western and Southern CEN
tres. as a rule indicating a demand upon
New York for currency and suggesting
the beginning of an active inquiry mere
for funds in connection with the f1nanc-
ing Of the crops In addition to the i'm
proyemeut in the position of the local
bank reserves in recent months as an IN
fiuence upon the autumn money mar
ket. il is encouraging to learn from our
leading bankers that in the last few
weeks pressure has been brought to bear
on country banks throughout the United
states TO colnpel IIeii ~ o'i 'iAN-
their resources through healthy loan
contraction, and that as consequence
much better position obtains at points
where decided weakness would have de-
veloped if greater conservatism practi-
cally had not been demanded by the
chief banking interests of the country.
The New York banks have been pre-
pairing for a long time to meet without
the accompaniment OF disturbance In the
local money market the fall demands
upon their resources. and now that re
serves are more than $50 1000. 600 above
legal requirements, while at other cities
efforts are being made 20 increase liquid
assets there apparently need be no ap-
prehension over autumn money market
developments. q