New-York tribune., 1910-08-31
FINANCIAL MARKET
Active Movement of Currency to
Interior Is Under Way.

Stock market prices moved in an
irregular manner throughout the day,
with the final tendency in the direction
Of lower levels. The volume of bust
ness was small, and represented little
beyond the operations of an unimpOrtant
professional element. which apparently
had no decided ideas on the probable
course of the market in the next few
weeks. though commission houses, as
rule, appeared TO believe that quotations
would go lower before permanent i'm
provement could be expected. Doubtless
il will be traders market for weeks TO
come The July earnings of the Harri-
man roads showing relatively light
gains in gross returns and losses in net.
together with the bearish statements
made by the president of the AtChison,
Topeka & Santa Fe before the Inter
state Commerce Commission a the rail-
road rate hearing. are not in line with
bull theories but it should he borne in
mind that the railroads are fighting for
higher rates and that they will not sing
the song Of prosperity until they secure
what they want or else find that current
rates are just and reasonable in the
opinion of the government commission
ers.
A settlement of the rate situation one
way or the other viii tend to stimulate
new business. Mr.. Ripley. of the Atchi-
. son. says that he sees expenses ahead
this year that will keep net earnings
close to the per cent dividend margin
on the common stock. and that he would
I;
earn more than that rate. Last year.
with the biggest gross earnings in its
history the road earned SIS per cent.
If the AtChison can earn & per cent
under present conditions it is in no need
of especial sympathy. AS matter of
fact. the common stock should not have
been advanced to a q per cent basis last
wear. and the best interests of the stock
holders would he served by a return of
the issue to the per cent rate. The
chief part of the days operations was
supplied by Union Pacific, Reading and
United States Steel. Call money was q
trifie firmer. and the general money
market received more attention owing to
the increasing shipments of currency 10
out Of town points, including large ship
ments OF gold to Canada. Easier dis
counts in London weakened the tone of
the local sterling exchange market.
Washington advices state that ma
tional banks are taking out additional
circulation. as they are accustomed to do
at this period of the year and a ma
terial increase in national bank notes
outstanding, therefore. may be looked
Clearing in
stitutions hold national bank notes to
the extent of $40 $50 800. a decrease of
81 So 800 as compared with this time a
year ago out of the total bond secured
circulation of $500. .092. 30, but their
holdings of bonds and their resources to
secure bonds give them the power to add
substantially to their national bank note
account If the requirements of the situa-
ton become at all urgent. treasury
officers do not look for monetary dis
turbance in the crop moving period.
especially as the banks at this centre are
so strong III reserve funds; nor is there
any expectation here that the demand
for currency from outside sources, which
is now actively under way, Will be re-
fiected in anything more than a general
Stiffening in loan quotations.
AS far as the federal Treasury itself
is concerned, it is becoming more ap-
parent that the low position of its work
lures on Panama Canal construction will
induce the Secretary, in the course of
the next six months. to do some sort of
financing by which the money now being
spent from the general fund on the
canal can be restored to that account.
For the fiscal year to date the excess of
ordinary expenditures over receipts is
much smaller than at this period last
year, and the twelve months should
show Il larger surplus than reported for
the year ended June 80. 1910, but even
the satisfactory income received under
the current tariff law can hardly be ex-
pccted to increase to an amount large
enough to wipe out the Sl2.. loi 800 cX-
pended from the general fund on the
canal and the further amounts that
must be paid until Panama bonds are
sold. Congress has authorized S3lJ.-
2ND. $50 bonds on Panama Canal ac-
count and of this amount only SSi .631 -
9Sp has been issued.