New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-14
FINANCIAL MARKET
Banks Add Substantial Sum to
Surplus Reserves.

Trading in stocks was light In volume
in the two hours of business, on move
ment of prices that showed net gains in
the larger number of issues at the close.
After brief period of irregularity in
the early dealings quotations advanced
under the influence of buying, induced
by sharp decline in the near corn OPP
tons and more favorable reports from
the grain and cotton belts the upward
movement representing chiefly covering
of short contracts There is an under
lying element of strength in the stock
market that is proving most disconcert-
ing to operators, who evidently believe
that the bear side of speculation still
holds the winning cards. Perhaps profit
taking sales on the advance from the
low levels of the year may bring about
reactions, but the fact that the stocks
taken over by powerful banking inter
ests in recent declines are not for sale
al current prices ought to convince bear
traders that We have not entered an
other long period of receding quotations.
American Smelling stock. which recently
has been moving under the influence OF
bear pressure, shows an advancing ten
dency, owing to the fact that 1t is beng
absorbed by substantial interests who
appear confident that the dividend will
not be reduced. Indeed. it is stated by
a director of the company that earnings
fully justify the maintenance of the
present rate on the common, particularly
as from last years results the surplus
from the company's income and from its
income from its ownership of stock in
the American Shelters Securities Com
pany is far in excess of common stock
dividend requirements. The general
market closed strong, with the chief
gains among the active issues in Smet-
ing. Reading. st. Paul, Chesapeake &
Ohio. Union Pacific and United States
Steel.
Wall Street commission houses. as
rule, take a hopeful view of the future
of money and business in this country
in their end of the week market letters,
and they do not hesitate to advise the
purchase of stocks and bonds for in
vestment account at prevailing prices, in
spite Of the fact that quotations are
from to 10 points above the low levels
recorded in July. Confidence has been
strengthened by the elimination Of weak
speculative accounts and by the sue
cessful efforts of our banks to increase
their reserves but outside of European
purchases of railroad bonds put out in
the last seven months there is still a
lack of demand for prime securities that
may be bought on q most satisfactory
income basis. 1t is not unlikely that
the liquidation that has been going on
in Wall Street will be followed by a sim
liar reimbursement in other lines, and that
eventually d large amount of money
now tied up in land and other specula-
tive enterprises outside the Stock EX-
change viii seek employment in the
market for railroad mortgage issues.
which are extremely attractive at pre-
vailing prices. REIMBURSEMENT to new
conditions is going on quietly, and
preparations being made by the local
banks for possible emergency will
serve to discourage the development of
disturbance.
According To the Clearing House show
Ing OF ACTUAL DdHh tOuuiltpHS, dts III
Friday night, the reserve above legal re-
stands at so, 143,3 $50 an in
crease of 81, $40, 80 over a week ago,
while the average reserve is SOB 2o3.S1j.
which compares with S23,3330,225 at this
time last year and S5I,61S,625 in 1903.
The gain in reserves was accomplished
in spite Of a heavy expansion in loans. !
large increase in cash, much larger than
indicated by Fridays estimates of the
weeks movement Of money, offsetting
the increase in loans brought about in
large part by syndicate operations. The
local banks are in an exceedingly strong
position and notwithstanding d gain in
loans in the last two weeks of more
than S30,0G0,000 total deposits are more
than So 100000 in excess of total loans.
The trust companies are also in good
condition.