New-York tribune., 1910-07-13
BANK STOCKS ON STOCK e
FINANCIAL MARKET
Sterling Exchange Rates a
Lowest Level Since 1908.

After showing 4 moderate degree Of
strength in the early dealings stock mar
ket prices moved to a lower level under
the influence Of selling by the profes-
sional element and q, certain amount Of
liquidation by interests who bought Sc
curities at the low points Of a week
ago Absence Of public participation in
the speculation, as far as the buying
side was concerned. encouraged opera
tions for lower quotations, though II
failed 10 bring out investment selling,
while the weakness Of the copper issues
and the unfavorabIe conditions existing
in the copper metal trade also were eff
fective influences in attracting sales for
short account. There is some reason to
believe that an open market for copper
soon will develop owing to the constant
shading of prices established by the
United Metals Selling Company by its
competitors It may be recalled that
following the development Of the open
market policy Of the United States Steel
CORPORATION. early in 1909, steel trade
conditions soon began to improve, and
in many well informed trade circles 1t
is believed that the adoption of SIM
liar policy by the United Metals Selling
Company would bring about like results
in the copper industry In June the pro-
duction of copper in the United States
was 127. .219.1SS pounds, the largest out
mt for anv month in the current year,
comparing with the low record of H.
7I2. .4S3 in January, while in June do
c
against 7S,15S,3S! pounds in January;
and in June exports were 65,S9o,34S
pounds. compared with S1,691, ,6I2 in the
first month of the year There is some
thing radically wrong with the copper
trade situation. The decline In stock
prices in the late afternoon was helped
bv the circulation Of sensational and
misleading reports regarding an alleged
unfriendly attitude by Germany to the
United States incident to the situation
in Nicaragua The closing was weak,
with losses of a point or more in the
prorrjnent issues, Union Pacific losing
more than , points. The buying on the
decline appeared TO come from subsran-
tiaI sources. especially in United States
Steel. Reading, Union Pacific, st. Paul
and Atchison.
Time money rates are fir1ner, but there
is no material change in the quotations
for call funds, for which the demand is
inactive. AS bank reserves showed a
substantial expansion in last week s
Clearing House statement and as the de-
mand for accommodation on call is IN
active. there is little probability OF an I'M
portant advance in quotations in the IN
mediate future, but it is likely that IN
floe autumn a stiff level will be reported
Bankers want more for long maturltles
for the good reason that they look for
something in the nature of a scarcity Of
funds in the fall, and the fact that call
money rules only a trifie under . per
cent. with bank reserves at more thah
S1S.OO0.0O0, supplies further evidence OF
the probability of higher rates later IN
the season in all departments OF the
market. Call money at this centre IS
well above the prevailing rate in the
London market, and the firner tendency
I'm time loans is reflected in weakness IN
sterling exchange. which also is affected
bv fairly large offerings Of stock bills
and the expectation OF an lllCl sup
plv of commercial bills. Demand sterling
is now at about the lowest point re-
ported since early in 1903. New York
apparently viii be a competitor IN the
London market for the weekly conslgn-
meuts of South African gold for some
time to come While the full complla-
tion under the recent call Of the Con
froller of the Currency Of the condition
Of national banks has not yet been made,
public figures showing changes from the
last preceding call al reserve cities are
available. and they indicate improve
ment in bank conditions in the Middle
West and further Strengthening OF re-
sources among the Eastern institutions
which have to stand the brunt OF crop
financing. Advjces from the agricultural
community, including the spring wheat
territory OF the Northwest, are more en-
couraging It is almost certain that an
enormous amount Of money will be in
volved in the gathering and marketing
of the years harvests