The Washington times., 1910-10-16
OF PREDICTED DISASTERS
HAS HELPED MARKETS POSITION
Strong Prices Resulted
mutation Financial Interes-Revew
entail Events OF Week.
Newspapers.
II more encourag.


advances. which appear more encourag-
ing.
The presentation Of the railways side
of the freight rate case during the week
by President McCrea, Of the Pennsyl-
Vania: President Brown. OF the New
York Central. and President Willard. OF
The Baltimore and Ohio, created a high
y favorable impression, for, according
60 Wall Street opinion, the trunk lire
presidents made out a clear case in IA
NOr OF higher traffic schedules and this
removed 10 a large extent the feeling
that has heretofore prevailed and which,
II must be admitted. was created BY the
testimony OF subordinate officials, that
the railways had not made a good show
INK before the Commerce Commission
The belief that railways will be per-
mitted to advance freight rates offers
possible explanation for the sharp adj
vance in United States Steel stock at q
time when the company reports untitled
orders on hand OF 315s los tons the
smallest with but one exception in its
history. The shTinkage IN business hs s
been very dapid. orders falling off SIS, 600
tons or II per cent in September. while
compared with September 80. 1909; the
decline IS i,6a9,OQQ tons, or nearly 3
per cent. But the great bulk OF dimiD-
tshed business is due 10 the stoppage
Of buying by railways. and IL there Is
a fair prospect Of freight advances, rail-
ways viii resume purchases. and the
70
UnqueStiOnably a heavy short interes
in steel stock assisted the recovery.
Bonds and Money Market.
With the revival Of speculative activ-
ity. the investment bond business turned
poor, and experienced something OF a
setback Dealings in speculative bonds
continued, but the movement in such
issues Is not TO be confused with the
investment demand and the iauening
out OF that market created much disap-
polntment. The hardening tendency o.
10 the stock market was also traceabie
70 the stock market Call money ad-
VanCed 10 ga per cent. the highest rate
since May. and time money was dis
tinctly firmer. loan carrying over the
years ruling about L per cent higher
al AZ 10 5 Der cent.
Sterling exchange broke 80 points 70
4 So. al the outset OF the week on a
heavy Offering Of cotton bills. rushed
forward In order 70 reach Europe before
November ]. when the requirement OF
| bank guarantees On cotton ladlng bills
was 10 have gone into effect The com
promise plan IS TO guarantee such bills
through an independent company found
for the purpose. The details OF this
plan have not as Yet been worked out,
and opposition 20 f. comes from toe
South, but IL is hoped that some ar
ranEement may be made in the matter
]
sibie money trouble
On the surface the money market
gives. no assurance Of an ability 10 sus-
tain the additional pressure Of specu-
lative movement. with crop-moying still
IN progress. Loans throughout the
country are widely expanded, those Of
the national banks alone on September
/ last standing at S33s. $500 above the
same date I'm 1909. with cash holdings
smaller by $4,000. Since August IS,
when they stood a. SS3,25 ,Sz5. the sur
/ plus reserves Of the New York banks
have been reduced f45. .575. and they
stand today at S7,4l7-s00 in excess Of re
| GU rements. an increase Of Sl,f72,OO0 for
/ the week. due to the shifting process
| Loans Of the local institutions now eX-
! coed deposits by SOS. 1900.
The principal changes IN the average
| bank statement, the reduction OF SIS
| 1900 IN loans. and Of 81, SIS, 90 In de-
posts. is chiefly the result OF shifting
! OF accounts between banks and trust
| companies, due to the higher money
| rates. The sum total Of loans. takinG
! banks and trust companies together
| shows no material redu:tion- The aC-
! tual cash loss Of s.. go, so is the natural
! reflection Of crop-moving demand.