New-York tribune., 1910-05-22
FINANCIAL MARKET
Bank Reserves Show Further
Improvement.

On a moderately active volume or puSl-
ness stock market prices moved toward
a. higher level in the larger part OF the
two hour session, under the influence Of
blIving that bore the general character
istics OF the trading reported in fridays
operations. A better demand from sub
stantial interests has developed in the
last few days, but commission houses
are doing little in the market for pubic
account, though they believe that with
accumulation under way by important
Wall Street operators and the improve
ment reported in crop conditions. outside
money, backed by the ease with which
loans can be negotiated by brokers who
have sound collateral to offer, Will be
induced to make ventures for the rise.
This idea, however, finds no reflection in
advices received from the country at
large, which apparently does not look
favorably upon the chances for profits
on the long side Of speculation at the
prevailing level of prices, especially as
there is a feeling outside the Street that
the present advancing tendency on the
Stock Exchange represents little beyond
the determination of banking interests
to maintain stability in prices until they
have concluded their negotiations with
foreign bankers for the sale to the lat
ter Of large blocks of new American
securities There is no investment buy
ing Of Importance in the local market,
and It is quite evident that the supply
of capital here available for use in the
investment market is extremely limited
Berlin has been buying Baltimore &
Ohio in recent days, and local and Lon
don interests continue to take Canadian
Pacific. More interest IS shown in the
local gas stocks, and in the case Of
Brooklyn Union Gas it is believed that
the issue will sell higher, owing to it's
relatively low price at present and to
the probability Of the payment to stock
! holders IN the autumn OF an extra divi-
dend representing the dividends that
were not paid in the time Of the S0-cent
gas litigation. Good speculative buying
was reported in United States Steel IN
yesterdays transactions; also in Read
! ing, Union Pacific, Missouri Pacific, On
tario & Western and American SmeIt-
| ing.
Total transactions in the two hours of
business were almost as heavy as in the
three hour session Friday, and consider
ably more than In Thursdays full mar
ket. Expansion in the dealings was
helped by the expectation OF a favorable
| bank statement, and in speculative cir
cles opinion after the close of trading
favored the theory Of advancing prices
tomorrow as q consequence Of a gain
in cash Of almost 100000, and an in
crease in the reserve above legal require
ments of So, ,3S6. .275 to S25, ,213, $50, the
actual showing as Of Friday night.
Quite Unexpectedly loans in the exhibit
Of actual conditions increased to q ma
terial extent, while in the average state
ment q small decrease was reported.
The average reserve advanced S6,719,025
to S23, so, ,975, which compares with S19,-
919, ,775 at this time last year, and S56,-
1853 in 1908. Loans Of the trust
companies declined SS77, 800 and cash de-
creased S272, 800. Loans Of the asso-
ciated banks are still in excess of de-
posits, though the margin is not large.
Compared with a year ago loans show
a decrease of $155,074.1 100. and cash a
decrease Of So, ,S73,7O0. The money mar
ket was inactive yesterday. while sterl-
ing exchange again was strong, demand
rates closing points above Fridays
final level. It is quite generally believed
that announcement will be made early
this week OF the successful placing Of
several blocks of American securities
with Paris bankers, accompanied by
lower quotations IN the foreign exchange
market at this centre. Exchange in
Paris on London has been advancing in
recent days. and 1t is now at the highest
point since 1907, the movement sugges-
ting shipments Of gold to the British
capital