The sun., 1910-01-09
4lNANcEAL, AND .coMNERcLAL.


Partly because Of course OF reasoning
followinx lines familiar TO Wall Street
that ne long expected message OF the
President 20 Congress vas thing Of the
past. an d partly, as seemed. because OF the
general belief that the weekly bank state
ment would be favorable the prevailing
tendency Of to-day's stock market was
upward. There is no doub that a ,con-
siderable short interest was built up in
the 10 arket in the earlier portion Of the
week. and just as they had done on
pretty nearly every occasion in the last
three or four months when a small profit
was visible on their ventures professional
operators FOR the decline were as a rule
employed yesterday and to-day in COW
ering their commitments. Aside from
this general trend the days market was
wholly without feature. Except in the
case Of the Virginia Ca rolina Chemical
shares, the net advances made W ere less
than point in any Of the stocks usually
called active. and in most OF these stocks
the gains were not more than half a point.
From the beginning TO the end Of the day
ODAy PhOACccAVhal Ouyhhk 1hu 5tiuhk
was evident The bank statement was
betveen. the average and actual figures
Of the return. Under the average system
Of ofauompilation loans increased - ,3sS 600
and cash Increased s412. 900. which with
IAN Increase in deposits of s7,340.o00
resulted in a decrease of 81. .422. SIS in the
average surplus. The actual figures
ltR.x.A ..k4Alxr hik.N
Of a decrease in loans Of sl4.l2O 800. an
increase OF over 1000 600 in cash. which
with decrease of nearly e. 500 900 in
depositss gave an. increase in surplus Of
sll, ,Q6l Jas. Rather curiously too the
statement Of banks outside the Clearing
House made-a showing of IA decrease in
loans Of Sip.6 900 and an increase Of
sSe.Oo0,OO0 in cash OF course the con-
trary and puzzling character of these
different exhibits was due to the usual
complicated shifting Of loans and cross
currents of money movement between
the banks and trust companies and out
Of town institutions incident to the first
week of the new year. Attention ought.
however, 20 be drawn to the fact that the
average surplus reserve now is 81. .705, ,S25.
which is by far the lowest shown at this
0LtS III Inc IHcb uOLtu years anu COElDhTto
with a surplus Of even 81 S.040> 700 in 1907.
when the business activity OF the country
WAS at its height IL may or may not
be considered. according 10 the turn Of
mind OF the individual. whether there is
any great amount Of room left here for
q hurther extension OF stock market
sredit: "a.
All Trustworthy statements as 20 the
scpndition Of current business run to the
ssGeotl that an exceedingly hourishing
state Of affairs continues in. this regard
and that the outlook for the country's
spring trade is good 1t is equally obvi-
soda however. that the money situation
proper is such as to give reason for much
serious thought. and not the least inter
esting phase of this matter 10 that the
oountry's adverse trade balance is in a
state whore any ma beriai fall in money
rates-of which, however, there seems TO
~ M phkslthood-wouldr result in a large
fprther .expelsion of gold. A certain lull
inbusiness right 40 the moment is obvious,
hat this is entirely reasonable. and is,
3ibdeed, according to all observation, less
fhan 10 ouztomarily seen at this time.
One thing that is talked OF a good deal in
bxnkipg parlors, but which is compare
lively NIUE needed IN speculative Circles,
81 tiie certainty that before long the Gov
! gsspenent must be a large borrower and
!. Ghat the terms OF this borrowing are as
yet entirely unsettled. Bankers gener-
ally agree that the new Government
securities to- be issued should bear a
higher rate of interest than ? per cent,
: frsts because IL is plain that such low in
terest bearing securities could not be
marketed, and secondly, because there is
q cohsensus that no further inducements
ought to be offered to the national banks
; 70 increase their bank note circulation
and that the country's financial affairs
arc suffering more or less from what Is
already a redundant bank note circula-
ss1s5n 0hthe other hand strong objection
10 made in powerful quarters in Wash
NGtop 70 the Bringing out Of any new
e6overnnlent isslgcs in stcfra wayyas will
conflict with the currency reform pro-
gramme that is expected to he promul-
s-Kated- me course Of the present year
by the currency commission. II il To he
hoped that the matter will be adjusted
upon a satisfactory basis before the
necessities OF the Treasury force a hasty
borrowing by the Government in man
ner to disturb / he general money market.