New-York tribune., 1910-06-19
FINANCIAL MARKET
Local Banks Report Gain in
Their Cash and Reserves.

AS compared with the transactions In
Fridays slim market yesterdays deal
ings in stocks were relatively heavy In
the two hours Of business total sales
were almost as large as the entire oper-
ations of the preceding day, with indlca-
tions at the close pointing to increased
activity in the current week. The ma
jority Of stocks and bonds that may be
classed as prime investments are seihng
at a level that ought to attract invest
ment capital, particularly as under cur
rent money market conditions there Is
more profit in securities than in loans
Many high grade issues may be obtained
on an investment basis Of from to b
per cent. Call money cannot be placed
above per cent, and time funds for six
months do not bring more than "a per
cent Money market conditions suggest
that there soon will be a readjustnent
of securities prices to a higher level. and
the ease with which stock quotations ad-
vance on the slightest demand encour-
ages the expectation OF gradual improve
ment. especially in the high grade IN
vestment issues.
In the early QSdlllSS lllo pSdi SiCAiiSiis
was successful in bringing about mod
crate declines from the closing Of the day
before, but in the absence Of genuine
LIQUIDATION efforts were not made to Gre
ate a large short interest, reflection OF
which was presented in the final trad
ing, when prices throughout the list ad-
vanced rapidly on buying by the shorts,
who apparently We're not willing to go
home with contracts outstanding. With
only a few unimportant exceptions last
quotations showed net gains. The So
called Hawley shares were weak feat
ures in the first hour Of trading, and the
selling attracted a certain amount Of
pressure in other parts Of the market.
Toledo, ST. Louis & Western stocks
failed to recover much Of their initial
decline, but Chesapeake & Ohio, after
a break of 2 points, ended at q net frac-
tional advance. Good buying was re-
ported on the decline in Union Pacific,
New York Central. Amalgamated Cop
per, Reading and United States Steel,
which closed at gains and we'll above
their low points. The decline in Toledo,
St Louis & Western preferred Of more
than points strengthened the expecta-
ton Of a reduction in the dividend,
which since 1907 has been at the rate
of per cent a year. Chicago was a
seller of the stock and OF Chesapeake &
Ohio.
Bank statement figures showed a fur
ther material increase in cash and re-
serve holdings, both in the actual and
average figures. In the exhibit OF actual
conditions there was gain Of Sc, 761, 600
in cash and a gain of S4.O62,5OO in the
reserve above legal requirements to S2S,-
552, ,525, while in the average figures the
gain in cash amounted to 81, 4,914, 800 and
that in reserve to 81, ,9S5. $50 to $26.OS4,-
$50, compared with S19.26S, 700 at this
time year ago and S5S,711.S75 in 1903.
Loans increased in the actual statement
So, ,603, 300 and in the average S2,96S,3OO.
Loans are now less than S10O,O in ex-
cess of deposits, and in view of the large
gain in cash and the inactivity Of the
stock market the expansion in the loan
item last week must be considered a fa~
vorable development