New-York tribune., 1911-11-04
FINANCIAL MARKET
Local Banks Lose Cash on
Weeks Currency Movement.

Stock market prices advanced in the
early dealings. md while active profit
taking sales wele reported in the after
noon, last quotations, as q rule, showed
gains, as compared with the closing fig
ures of the preceding day. Sentiment
was conservatively bullish. The So
called money interests apparently are
exercising their talents. which are
backed by tremendous banking power. TO
prevent anything in the nature of a bull
boom, and the chances are they will he
successful. as the public is not buying 10
any extent, while the larger part of the
advance so far recorded has been due TO
covering of shorts, based on the well
founded theory that the banking com
munity has made up its mind TO prevent
decentralization in the market because
certain Spectators believe prices should
20 TO the melting point, owing 10 gov
ernment activities against the corpora
tions and TO various uncertainties in the
general business situation. The big men
are operating for stability in prices. a
gradual advance is looked for, but in
view Of the sharp gains recorded in re-
cent days the possibility Of a reaction is
more than fair. Some Of the specialties
were in good demand yesterday, Ameri-
can Can and American Beet Sugar being
especially active. In the regular list
Reauing was the strongest feature, while
Union Pacific. Baltimore & Ohio, United
States Steel, Canadian Pacific, Erie
issues and New York Central also gave
E good account Of themselves.
Earnings in the New York Central for
the last month and for the first three
quarters Of 1911 encouraged the expecta-
ton that the company will show sub
stantial surplus above dividend require
N ,nts for the year. and operators who
recently have been selling Central shares
short, in the hope the road would be
compelled to reduce its dividend, are
now covering their contracts, while a
good amount Of the stock is going into
investors boxes. Railroad earnings
show irregular results. but in the main
they are favorable. and present nothing
on which one can predict general busi-
=
irregular and dull Reading maintaining
all OF its Improvement. II was rumored
that q considerable amount Of Lehigh
Valley had been sold and that the pro-
ceeds had been re.nvested in Readi-g
common. Unless Reading directors in
tend TO increase the dividend on the
common. which appears improbable just
now, a transfer Of funds from the Le
high Valley stock 70 Reading would not
be profitable from an investment point
OF view. At its present price Reading
common returns little more than 1 per
cent Lehigh Valley returns over ) per
cent
According 10 the known movement Of
money III the week. the local banks have
lost more than 100000 in cash hold
ings. their gain on receipts Of currency
from the interior and new gold being
more than offset by their loss on their
operations with the Treasury,
amounting TO S5.j93 600. Out-of-town
creditors Of the government continue TO
settle their obligations to the federal
Treasury through drafts on their corre-
epondents at this centre, the operation
being in large part responsible for the
excess payments now being made by tho
local banks TO the government and rep
resenting indirectly the use the interior
institutions have for their funds at home
IN connection with crop financing pur-
poses. Current receipts Of currency here
come chiefly from nearby and Eastern
points while the chief shipments from
New York are 10 the South, outside Of
transfers Of funds 10 san Francisco and
Montreal certain amount Of shifting
Of credits between the banks in the cur
rent week incident to November interest
end dividend disbursements must be
taken into account in speculatlng on the
showing in to-day's Clearing House
statement Of the associated institutions.
but there is nothing in the course Of the
money market that suggests a material
reduction I'm the reserve above legal re-
ouiremeuts Time and call money
showed an easier tendency yesterday,
while sterling exchange was firm in
spite Of a soft market for discounts in
London. Announcement OF d final set
tlement Of the Moroccan dispute between
France ana Germany helped sentiment
here, but it came too late TO be q factor
in the European markets. which were
irregular and dull.