Omaha daily bee., 1910-07-07
THE BEE: OMAHA. THURSDAY, JULY Z 1910.
NEW YORKSTOCKS AND BONDS
Spectators Turn to Banks for Ex.
PLANTATION Of Conditions.
honey POSITION STRONGER
Enlargement of Geld for shipment %
New Tork Turns Market sharply
Upward After weak
OPenfnH.

NEW YORK, July 6-There was a dis
position To-Day IN lhe financial district 10
turn 10 the Danking and financial position
L"f explanation OF Jhe action OF the stock
market TIE increased prominence Eiven
10 the subject OF the BANKING situation
grew out OF the published expressions Of
some o. the distinguished banking autbori-
Ties 81 the interior regarding the farm land
speculation and the CONSEQUENCES 10 be an
pretended from it. The subject itself Is
MOI a good one, nor Is its importance newly
regarded by New York bankers, since n
has been dwelt on for months past and
with special stress ever since the sbEtrs ct
OF reports OF national banks under the last
comptrOllers call IN March became known
disclosing a loan expansion in years
time OF half billion dollars This special
stress on the subject has kept alive A bon-
Nlcnon mat the original position was IN
course o. correction. That correction is not
maintained by the interior banking authori-
Ties now posted There is complaint that
the smaller banks are stin burdensd with
mortgages and with farmers paper instead
OF the usual investments in commercial
paper, which serves as q secondary re-
serve, while their balances in the reserve
banks are below normal Such a position
indicates that the crop moving require
ments VIII have to be met to q larger eN-
tent than usual by calling on the larger
banking centers for accommodation. The
lntirnAtton that the reports now being sent
70 the comptroller, but not yet in shape
Tor tabulation, will not show the expected
Improvement in the credit position had a
AAeAlAAluk GlANGl on sentiment ana WAS d
large factor in the early crash Of prices
today. Some few stocks then fell to be-
low last weeks low levels. thus establish
ing them at the lowest for the year.
The importance attached 20 the prospec-
tive condition left speculative sentiment
ready TO be easily influenced by the re-
ports that gold had been engaged IN Lon
don for shipment to New York The
violent recovery In stocks was the result
While the recent course Of foreign ex-
change rates had presRged such a move
nent todsy's engagements came sooner
than was expected. The effect was tO
stiffen the discount rate in London and
arouse BCIne question whether the official
bank rate would be reduced tomorrow, as
WAC expected. II is not believed, however
that any determined obstacle viii be op-
posed 10 the movement Of gold to New
York The return on money now is con-
si6erably lower IN London than In New
York, offering an inducement TO place
London funds in New York. Subscriptions
for the American bonds recently sold
abroad are payable in installments. which
call for rsmittances to New York. The
country has shown Improvement and i'm.
ports have fallen off There have beer
purchases of securities in the New Yori
stock market for London account during
the severe depression Of the last few days
and these have helped 10 weaken tbs
rates. That free recourse for relief II
open TO the New York money market II
London is q belief warranted by these con
-ditians.
The decline in wheat and corn helped
stocks. the strong rally in wheat on IN
favorable weather predictions in the whes
region helptng TO unsettle the rally a
the last. The early severe declines weir
more than recovered. however, and tn
net gains were retained at their closing.
Bonds were irregular. Total sales, pa
t-value, s297L000. United States bonds wer
i unchanged ON call.
| Number OF sales und leading quotation
| on stocks were as follows;