New-York tribune., 1910-07-16
FINANCIAL MARKET
Banks Show Heavy Cash Gain
from interior Points.

Transactions in yesterdays stock mar
ket were light in volume and repre-
sented in large part the operations Of
the professional element, which showed
account, sentiment as a rule favoring
higher quotations. Final changes
showed unimportant differences from
the closing of the preceding day, the
small losses reported in the early trad
ing being offset to a large extent by
strength in the afternoon, based on COW
ering of shorts, induced by a report that
an important announcement affecting
the money market would be made after
the close of business. This report
doubtless referred to the subsequent dis
patch from Washington stating that the
Secretary of the Treasury had in an in
formal way suggested to leading bank
ers at Eastern reserve cities the organi-
zation of national currency associations
under the provisions of the emergency
currency law for the purpose of placing
the banks in a position to issue emer-
gency currency in the event of the need
for additional circulation in the autumn.
The emergency currency law has been
in force for more than two years, and
in that time only one national currency
association has been formed, and no ap-
plication has been made for circulation
under the terms of the measure, which
never has been popular with bankers.
At the present time there are no indi4
cations that the banks will not be able
to take care of the fall demand for
money, especially as gold is coming to
this country for the first time since the
panic of 1907. The Secretary's ideas,
nevertheless, are worth serious consider
alton, even though there is perfect
calm in the monetary situation just now
and no signs of a squall. The emer-
gency currency law is makeshift piece
of legislation, but in q, time of monetary
trouble it would serve TO bring about
temporary relief without producing per
manent good effects and without ward
ing off future financial disturbance Our
currency system should be so modelled
that there would be no necessity Tor
emergency currency in the form OF
highly taxed national bank notes. The
country's tremendous resources and re-
cuperatiye power are the only factors
that have prevented more panics as
consequence of our antiQuated currency
system which is inelastic and cumber-
some. and which generally causes a con-
traction in the supply of money when
we need expansion and expansion when
we need contraction
According to the known movement OF
money in the week, the local banks have
gained more than SS,OOO,O0 in cash
holdings, the larger part of which rep
resents receipts Of currency from out OF
town Much of the money received was
the redeposit of funds paid out in July
interest and dividend disbursements and
the return from country banks of de-
posits withdrawn incident to the recent
call of the Controller of the Currency.
while in addition a considerable amount
came from operators in stocks who were
compelled to supply more margin on
their speculative commitments and from
actual investors who took advantage or
last weeks break in prices to acquire
Treasury operations are now In favor Of
the banks. and sterling exchange market
conditions suggest that the local insutu-
tions will be able to increase their re-
sources to a material extent through i'm
ports of gold. Gold to the amount OF
S1.I5O.o00 was received from Europe
Yesterday. and while this sum did not
figure in the weeks estimated movement
Of currency. it will be shown in to-day's
statement of actual bank conditions.
which ought to make a favorable ex-
hibit. The statement of the country's
foreign trade for the month of June re-
fleets a growing export business ana a
declining tendency in imports, exports
showing a material increase over the
same month last year and imports de-
crease. while since January / export fig
ures present net increase Of Slo,ofZ,-
1I2 against a net loss in imports OF s1o.-
ass. .333. these figures comparing with a
nat loss in exports in the corresponding
time In 1909 OF S39, ,2o3, ,253 and a net
gain in imports of S21. .OsS. .62S. Foreign
trade has turned in favor of heavier *
ports and lighter imports, most de-
wear lust closed the excess of exports
IF merchandise amounted In value to
only sIs7, III ,349. against an excess Of
S251. .O90, $50 in the preceding year and
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