New-York tribune., 1910-07-23
T FINANCIAL MARKET
Banks Add Substantial Sum to
Cash Holdings.

Stock market prices were "coA
throughout the larger part Of the day
on a selling movement that represented
professional operations for lower prices
and actual liquidation by commission
houses Activity increased at the .eX-
pense Of quotations, which among the
nrominent shares suffered maximum de
clines of from ] to 3 points, with final
losses generally lighter National Lead
made a new low record for the year,
while in various parts OF the list prices
at their low points were not lar from
the cheapest figures of 1910. Doubtless
a factor in the downward movement was
| the publication Of the complete state
ment of the national banks in this coun-
| try showing conditions on June 30 that
/ suggested the necessity Of further hQul-
! dation in all lines before the position of
| tbe hanks outside of New York can be
considered strong. Liquidation in stocks
| has been extensive, but the same Is not
true of other markets. Speculative COM
mitments in the West are altogether too
large and borrowing has been carried TO
/ a point that never should have been al
! lowed by Western financial institutions.
/ Fortunately since the Controllers last
| call a more conservative policy has been
| adopted and if the tendency to reduce
| loans and to discourage extravagant
speculation in lands and commodities
| continues there should be no disturbance
in -ney in the autumn
Some of the large spectators on the
Stock Exchange are liquidating their
! holdings al fast as the market Will take
them, and IL is understood that they are
| doing so on the hint Of banking inter
ests who are determined TO cut down
speculative commitments in securities
and to place every obstacle in the
wav of a bull movement at the pres
ent time on the well founded theory
that the future strength of the f1nan-
cial situation will depend to large eX-
tent upon a steady decrease in loans just
now Money rates to be sure, are easy,
but the low level for loans is no indica-
tion that bull market can be brought
about this summer. Good stocks, how
ever. are worth buying at prevailing
prices and on all declines-that is, for
investment account. The important
stocks only to the extent of preventing
anything in the nature of demorallza-
ton in prices Prices rallied through
out the list in the late afternoon, but the
Improvement failed to prevent gen
orally lower level of quotations, as COM
pared with the closing of the preceding
Gay
According to the known movement of
money in the current week. the local
banks have gained almost S15.OO0,OO0 in
cash holdings, the heaviest part of the
increase representing excess receipts of
currency on interior operations. The
banks also gained on their transactions
with the Sub-Treasury and on gold i'm
ports. In all probability loans have
contracted in the last six business days,
and a favorable statement Of the Clear
ing House institutions therefore may be
expected to-day. Since the call of the
Controller Of the Currency for bank fig
i.res as Of June 80 The local banks have
materially reduced loans and added to
their reserve strength, while the Con-
trolers compilation shows that from
the time of the last preceding call to
June 80 the national banks of this city
substantially improved their position.
The situation here as disclosed by the
full returns 10 the Controller is far
Stronger than elsewhere in the country,
and although outside OF New York some
what better conditions are shown in
some sections the comparison with a
year ago is unfavorable, presenting an
increase of approximately S47S,OO0,OO0
in total loans against a decrease in the
same item in this city of more than SS4,
100000 The curtaiment of loans at in
terror points has been disappointingly
small, and leads to the belief that this
CITY will be compelled to send an unusu-
ally heavy amount of currency to the
West in the autumn Receipts of cur
rency at this centre last week in large
part were from nearby points, represent
ing TO considerable extent the return
of vacation money spent at summer re-
souts The case in money here and the
slightly firmer discounts in London are
responsible for an advancing tendency
in the sterling exchange market, and il
| is unlikely New York will be a bidder
for the South African gold that viii be