New-York tribune., 1910-08-20
FINANCIAL MARKET
Money Rates Easy, While Ster'
Iinq Exchange Advances.

iinQ ExCIldIlQe ADVANCES.
Transactions in yesterdays stock mar
ket were confined in large part to the
operations of the professional element
! AS d rule, prices moved to lower levels,
although the volume of selling was not
heavy enough to bring about important
declines, losses of more than point
! being confined to few issues. Strength
in the foreign exchange market, the
understanding that banking interests
were not in favor of aggressive trading
on the bull side of the market and that
any attempt to bring about a sustained
bull campaign would be met with stiff
| fleming in money rates, together with
the known elimination Of the larger part
! OF the short account on the advance
from the low points of July, encouraged
selling pressure in most parts Of the
| list. the trading, however, amounting to
| little more than profit scalping dealings.
| The general course Of prices in the last
two days suggests that the market is
not i'll a position to take any large
amount of stock without a substantial
! lowering of prices There appears to be
little chance of any real interest in the
securities markets for weeks to come,
unless something with a radical bearing
upon intrinsic values should develop.
Crop advices received yesterday in the
main were favorable, and wheat prices
We're materially lower. Cotton was
higher. The general list exhibited
firmer tone in the late trading on COW
ering by the shorts, especially in Brook
lyn Rapid Transit, ST. Paul, the Inter
borough Metropolitan issues. Reading
and Union Pacific.
According to the known movement Of
money in the current week the local
banks have gained upward of So OOO,OCO
in cash holdings, Of which amount
$1,255,0o0 represents q gain on opera
tions with out-of-town points. Receipts
from the interior showed a falling off as
compared with week ago. while ship
ments of C~rrency from this centre to
Western and Southern cities, as rule
were well in advance Of last weeks out
go. The heaviest gain on the general
movement OF money was from new gold
gold imported from London. That the
banks are not inclined to part with cur
rency in any form is reflected in the
decline in shipments Of national bank
notes to Washington for redemption. In
spite of the large reserves now reported
il is not likely that the local institu-
tions will make any further concessions
tions for commercial paper. Sub-Treas-
ury operations proper are running
against the banks, owing to heavy Gus
toms receipts from a record breaking
import trade, interior exchange fore
shadows a gradual increase in the
Southern and Western demand for
money here, and foreign exchange ex-
tends no promise OF further imports of
gold from Europe. We have no trade
balance Our obligations abroad are
enormous. Moreover. these obligations
are practically fixed charges on this ma
ton the liquidation of which in the past
has been effected through a heavy ex-
cess of merchandise exports over i'm
ports.
IN lfls last seven IIcIL1lS lIllS country
had q balance on trade account in its
favor Of less than S2,000,0OO, against q
balance for the same time in the pre-
ceedng year of Il little more than SCI
600 600 and S372, 100000 in 1908. If i'm
ports of merchandise continue to in
crease at their present rate of gain, and
if exports, which in the aggregate are
heavy. do not expand. there VIII be only
one way 10 pay our debts abroad; that
is through gold exports, unless Europe
increases its holdings OF our securities
to ar enormous extent. Fortunately !
there is some indication Of growing ex-
port trade. and signs OF a reduction in !
the volume Of expenditures on foreign |
luXuries. A readjustment in the cost Of |
living here. including the cutting off OF |
extravaganza on the part OF the people, |
viii help the United States TO regain its !
position as an exporting nation. At pres
ent, and ever since 1908. our markets !
have been attractive for foreign sellers, |
but prices have been too high to appeal !
to buyers. In the fiscal year ended June |
30 1905 our exports of merchandise /
exceeded imports to the value of almost !
$7ooe3oro0 In the last fiscal year there |!
was an excess OF only $IS1 .519, 500, most !
Of which represented the operations OF |
the 'lrEf half of The yeDr