New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-02
BANK STOCAS ON ST
FINANCIAL MARKET
Inactive Demand for Loans
Causes Freer Offerings.


ume throughout the five hours of bust
ness, the larger part of the transactions
representing the operations of the pro-
fessional element which apparently had
little idea of making engagements which
involved more than swapping profits.
Prices moved in an irregular manner.
with last changes showing net losses as
compared with Saturdays final figures.
In the best informed Wall Street circles
it is believed that the market has again
settled into a purely traders affair, with
the general tendency Of quotations in
the direction of lower levels before sus-
tanned Improvement may be looked for.
The idea that prices viii go lower is
based on the theory that liquidation of
speculative accounts has not yet been
completed, and that the various uncer-
tainties in the situation. especially in
reference to the outcome Of the crops,
the fall elections, Supreme Court de-
CiSions and the effect Of speculative
losses upon the buying power of the
country at large not only will discourage
speculative operations for higher prices,
bear account It is worth noting that
ia spite of the taking over last week of
stocks that had been serious menace to
the market Wall Street is bearish and
finds little reason for cheerfuneSs in the
fact that the country is still doing a
rather active commercial business, with
no indication that Industrial, financial
and political chaos is developing. There
is no sign of investment liquidation, ex-
cept in cases where ready cash is needed
to protect speculative commitments. or
TO buy automobiles and endow them.
but, on the other hand, it can be stated
without fear of contradiction that the
people who have unlimited resources.
including wide bank credits, are buying
stocks and forgetting them for the time
being.
No one dares to venture the opinion.
that prices will not go lower On all de-
clines. however, stocks will be absorbed
by real capital. and the usual profits I'LL
timately will be secured. Most invest
ment stocks viii be cheap on further
downward movements. even if the talk
Of a general reduction in dividends ma
terializes into a fact
The railroads are showing almost rec
ord breaking gross earnings, yet net re-
turns are bad. For the month of June
the Pennsylvania and the New York
Central, our leading major railroad prop
critics. report substantial improvement in
gross receipts. but heavy losses in net
results. There are q few suspicious peo-
pie in the Street who believe that the
railroads have such good bookkeepers
that net earnings are being doctored IN
order 20 convince the Interstate Com
merce Commission that higher freight
rates are justified. Such a view of the
situation. however, is not generally en-
tertained It is evident, nevertheless,
that economy will have to be practised
by transportation companies 20 offset
the Increased cost Of labor and mate
rails. Liquidation may yet extend to the
labor market. while economists believe
that the time must come wher there will
be a readiustInent of the cost of living
10 q lower basis.
The local demand for money Is inac-
tive, snd at the moment there appears
little probability OF an increased inquiry
in the current week in either the call or
time department Of the market. Com
nerc:el paper offerings are light. Lend
e-s. however. show greater willingness
TO put OFT their funds on bills and col
lateral loans, owing no doubt to the fact
that borrowers needs apparently are
rot urgent at a time when bank re-
serves are large The trust companies
reduced their loans last week TO an ex-
tent that offset the expansion in the
same item IL the report Of actual bank
conditions as OF Friday night, while
general changes in bank holdings dissi-
pated 20 large extent the theory of
coming disturbance in our money mar
I1et The actual reserve above legal re-
quirements OF the Clearing House MEM
bers IS unusually heavy for this period
OF the year, and 1t is quite evident from
the changes IN cash and reserves at this
centre in recent weeks that our bankers
are determined 10 be in a position 70
handle any emergency that may develop
as a consequence OF the heavy loans be-
ing carried by banks outside New York
ard other weak features that are too
well known to need comment. series
OF unfortunate developments will be
minimized in their effect upon the gen
eral situation by the strength of the
New York banks and the country's
credit abroad. the latter insuring imports
of round amounts Of gold in addition 10
the metal already brought IN, IF such "A
a d1riG Ia
Foreign exchange rates again are near
he lowest POINTS Of the year. Europe
Las bought an enormous amount Of Sc