New-York tribune., 1910-07-27
FINANCIAL MARKET
Banks Call In Money on Stock
EXCHANGE Commitments.

Substantial Wall Street interests sup
movement to an extent that prevented
excessive speculative Generalization. At
the opening losses from the closing of
the preceding day were heavy enough
to suggest the development of acute dis
turbance in the course of the five hours
of trading, but outside OF active press
ure from the bear element and heavy
liquidation by commission houses, which
resulted in gradual lowering Of quota
tions, the general movement of prices
failed to bring forth anything in the
nature OF panicly conditions Banks
continued 10 call loans on accounts Of
doubtful merit, while they demanded in
creased margins on loans from borrow
ers whose credit seldom is questioned
Borrowers have to pay the piper when
the time for settlement comes. Unfortu-
nately for borrowers, all the banks ap-
parently have made I'D their minds that
this is the psychological moment for the
liquidation of many demand loans, and
as q consequence this weeks bank state
ment should show q further material in
crease in reserve above legal require
ments. The New York banks are pre-
paring fer an emergency, but they do
not expect to be compelled to take out
emergency currency. They are making
such active preparations for trouble that
there Will be no excuse for the develop
ment of financial disturbance. And it is
quite probable that the banks in the
West will follow the example OF the
Eastern institutions by forcing a radical
contraction in loan accounts. Other
markets must follow the stock market
in the matter OF liquidation before i'm
provement can be looked for.
The general situation, especially as re-
CARDS individual and corporate eXtrava-
gance. the oyerextension Of credit. the
high cost Of living and speculation based
on borrowed money. must go through a
process of readjustment to a sane and
healthy basis Stocks are leading the
way, and the sooner similar movements
develop elsewhere the better for all con-
cerned. Incidentally, it is worth men
tioning that the United States is not
going to pieces, and that on all declines
our prominent railway and industrial
securities are worth buying by people
who have the cash TO pay for them.
Cash necessities and foolish fears are
responsible fer some of the current SELL
ing, a reflection Of which is found in
sacrifice sales in many OF the usually in
active issues, as, for instance, Southern
Railway preferred, which in yesterdays
market sold down more than 5 points
between sales, and Missouri Pacific,
which showed a maximum loss of more
than 3 points. The issues named do not
pay dividends. but the same sort Of
selling was reported among high grade
investment securities. In the wheat
market prices We're easier in the after
Chicago, while corn declined for time
on less apprehension over reports of ad-
verse weather conditions in the corn
belt, though rallying near the close on
covering operations. New low records
for the year were made throughout the
list Of active stocks, with the chief de-
clines among the prominent issues in
Consolidated Gas. the Hartman shares.
st. Paul, Reading, Atchison, New York
Central and United States Steel. The
United States Steel Corporation declared
the usual quarterly dividend Of IL Der
cent on the common stock, and reported
earnings for the last quarter available
for dividends of SIG, ,568, 1913, against
S16,0l1 ABB for the corresponding time a
year ago.
Since the time Of its organization the
United States Steel Corporation has
earned an amount available for divi-
dends on the common stock averaging
about 9 per cent year. The report for
the second quarter Of the current year