New-York tribune., 1910-12-18
FINANCIAL MARKET
Through Contraction in Loans
and Gain in Cash Banks In
crease Reserves.

Transactions in the brief session OF
Yesterdays stock market were light in
volume on a movement Of prices that
showed net gains in the larger number
of issues. No attempt, however, was
made to push quotations. and the fact
that a general hardening tendency was
reported was extremely gratifying to DUH
interests who believed that gradual I'M
movement would be accomplished in
the weeks to come without recourse to
manipulation and without the assistance
of outside buying. Nothing in the nat
ure of a public demand appears in view,
as far as stocks are concerned, but II
the bond market actual investment buy
ing is under way, while there also IS 4
considerable amount of speculation IN
various mortgage issues. Profit taking
sales marked the course OF the Central
of Georgia incomes yesterday, and an ac-
tive inquiry was reported for the United
States Steel sinking fund 5s, While IN
other parts of the list, including the In
terborough- Metropolitan 412s, fair VOL
ume of business was reported. OF the
total dealings in stocks the larger part
was supplied by Union Pacific, Reading,
American Smeiters and United States
Steel, which, like most other issues,
showed only fractional price changes
from the closing of the day before.
Bank statement figures We're better
than looked for and again reflected sue
cessful efforts on the part Of the Clear
serves by shifting loans to the trust COM
panies and outside banks, the reserve
above legal requirements in the state
ment showing conditions of Friday night
presenting an increase Of So,62l, go,
while the gain in the exhibit of aver
ages was almost as large. In place Of
an estimated loss in cash there was an
increase of more than S1,1NOU0, due to
over the counter movements not recorded
in the known movement of money. To-
tai actual reserve now stands at s., ,339,-
400 against an average reserve of So
S99, 600, the latter comparing with Slo,-
443. 700 at this time last year and $10,-
OO9. 700 in 1908.
The Improvement that has taken place
in the market for railway mortgage is
sues in recent days suggests the prOba-
bility of gradual expansion in the de-
mand for bonds in the course of the next
few months, and in some quarters it en-
courages the idea OF a rising market for
stocks IF money accumulates at this
centre in the new year, owing to an alb
sence of demand for funds from mer-
camille quarters and depressed condi-
tions m the business world, the bond
market doubtless naturally Will tend TO
abso1, idle capital, but it does not fol-
low thai the stock market will share IN
the movement. Accommodating cash sup
plies as a consequence Of adverse trade
conditions is not an argument that is
likely to attract the public into the spec
uiative stock market, but then it need
not be assumed that the country is TO
run into a period Of acute depression or
that there will be a plethora Of money
at this centre.
AS a matter of fact there is no indica-
ton at the moment that an active de-
mand for accommodation will not de-
velop in the new year. Furthermore, 1t
is likely that railroad and industrial cor
porations will be compelled to come into
the market for new capital. while the
government likewise will become a fac
tor in the money market owing to Pan
anna Canal construction requirements.
There are many known factors to be con-
sidered in connection with the money
market in the new year. and there also
are many uncertainties in the general
situation with a bearing upon money
and business that make predictions re
garding the course of the stock market
in the early part Of 1911 extremely diff