New-York tribune., 1910-09-07
FINANCIAL MARKET
Money Rates Unchanged and
Sterling Quotations Lower.

o., ,fgh+ volume Of business stock
,,av1-e4 rrices moved toward a lower
level in the larger part Of the day. maxi
mum losses running from TO : Polii's
a,,ono the leading issues. the down
ward movement was not accompanied
bv outside selling. declines, as RUE
renresenting selling pressure from tile
rrofessional element. when baseo rs
.-,a-o+;one on the general dissemination
e .,a ,,,7hIic to come into the market
and on the absence Of signs OF support
from the substantial banking lhteEeS's-
The latter doubtless are not WorrSlis
over the course of prices, and In many
.,,+oroe- they are advising the purchase
e r,oclye on a scale down to hold Tor
much higher quotations that eventually
will develop. but IT is quite evident Iila'
:, -,.,.- Of the strain to which the banks
mill ba subjected for weeks to come anu
-, uncertainty over politics, the rail
road rare situation and the course OF
business in the next few months liley
ara unwilling TO do anything to encoor-
oge an active bull speculation at TINS
particular period
Current railroad earnings and hank
clearings do not suggest that the couh-
-r,- is running into period of business
6anreseion but the fact that in the race
of large gross receipts by the transpor-
+a+jor7 conluanies net earnings are snow
inc heavy declines in the case Of most
roads naturally causes some appreheh-
sion in financial circles over the ablllIy
of various companies to MAINTAIN olF1-
/ dends on the present basis. Inc LOUIS
,-i1ie & Nashville, the Burlington Ihe
&or7hern Pacific, the Rock Island the
| Tarl-av-a7na. the New York Central, the
r-,ion Pacific. the Southern Pacific ana
+be PENNSYLVANIA show total decIlhe
in net for the month OF july OF 90
/ q56. .I9S Operating costs have increased
70 an enormous extent in recent moh1hs'
and in the first half of the year the
gain on ga. .462 miles Of road amoohteo
10 more than II per cent as compared
with the same time in 1909. against
gain in gross earnings of about 10 per
u.r+ In the last hour Of trading COW
ori,. of shorts was responsible for
Nrn7er tendency and a recovery Of part
{ IF
was heavy and lifeless. Weakness IN
cotton and grain and the expectation
! of a f9yora BILE crop report at the END OF
! +ba week had little effect upon Stock
Exchange speculation. There was no
change IN call money rates, but time
! funds were f7rrner while sterling eX-
| change was lower
a
heavy loss last week in cash and re
! serve holdings, owing TO the movement
! Of currency TO the interior, WlthdraWalS
! for holiday expenses and Septempe
/ settlements In banking circles no uh-
( easiness is expressed over the declining
/ tendency in reserves, which Is "holly
natural at this season Of the year put
bankers. nevertheless, are exercising
great caution in locking up their funds
in distant loan maturities. The local
! demand for acconlm modation is inactive
/ The small volume of trading on the
/ Stock Exchange induces commission
! h0uses 10 compete with the banks IN the
/ call department Of the market, ana as
/ a consequence there is little probabNlty
! OF high rates for demand money IN the
/ immediate future unless an unusual
]
! develop, Of which there is not the sllght-
est indication despite the fact that
! prices for most issues are quoted at an
: attractive level The absence of an
/ active stock market may be hard on
! Wall Street houses that look TO the pup
| lie for their profits but ii is helping the
/ general financial situation
New York banks strengthened their
| resources throughout the summer, with
the present situation as regards the in
I terror call for funds in view. notWlth-
( standing the talk by Western bankers
that the country's chief financial centre
I would not be asked TO help finance har-
! vest requirements. The West and South
not only ere Withdrawing balances from
this centre. as they always do at this
/ period of the year. but in addition they
are liauidating their loans in this mar
/ ket and are financing their obligations
! on internal revenue account TO the fed
eral government by drafts on their
/ correspondents in New York. Further
more. New York is lending money direct
10 the interior. In the month Of Au-
gust money IN circulation in the coun-
!