New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-04-25
FINANCIAL MARKET
Overextended Short Interest
Responsible for Higher
Stock Prices.

Until Supreme Court decisions IN the
governments suits against the American
Company and the Standard OIL
Company are handed down MONDAY
markets on the Stock Exchange doubt
less will continue to be dull and hesitat-
ing affairs. While we'll informed wall
Street interests did not look for DEGREES
in these important cases yesterday, the
general market reflected In its early
movement an idea that verdict might
be rendered against both companies, al
though declines brought about on selling
based upon this theory failed TO induce
important liquidation. Indeed. the re-
sponse to the downward movement was
so poor that traders who put out short
contracts I'm the morning covered their
obligations IN the afternoon on a rising
level Of prices. The advance, however,
was no more effective In attracting out
side buying orders than was the early
decline in bringing out stock from COM
mission houses Total dealings showed
a material increase as compared win the
daily averages Of recent weeks. but or
the transactions In all stocks. amounting
TO more than 10000 shares. five issues
supplied three quarters Of the business
with United States Steel and Reading
furnishing about one-half Of the trans
actions in all securities. Amalgamated
Copper was an active feature in the late
dealings. buying being encouraged by
firmer tone in the copper metal market
and by the expectation that the forth
coming report Of the Copper Producers
Association would make Favorable
showing. The only real bull argument
on the general list was the size or the
short interest. Dealings throughout the
dav were made I'D almost entirely OF the
operations OF the professional element.
In the bond department New York CITY
issues were features. the AS, put out
last January. selling at new high
record price az 1O2A, which compares
with an average Of 100000. at which the
issue was placed at the time Of its pub
lie sale. The general bond market IS
inactive. New offerings are light In vol
ume and bankers are more engaged IN
making a market for securities bought
earlier IN the wear than they are In f1nan-
cling new offerings.
The extent OF trade depressions at IN
terror points is reflected in the movement
Of currency to this centre, which IN the
lac, two weeks has added upward OF
SIS 600 600 10 the cash holdings Of the
local banks. There is practically no de-
nand for money at the chief financial
cities in this country, outside OF san
E,ranciscoo. where funds are needed AT
the moment in connection with citrus
frrit crop requirements and from cur
rent Indications general lack or IN
ouirv for accommodation will be the chief
feature In the money market FOR some
time TO come While the banks are not
doing much Of business in the loan
market. they are terrifying their position
AGAINST q time Of need. and when re-
sumption Of activity develops III the IN
dustrial and financial markets they VIII
have funds available for all legitimate
borrowers. II is worth noting that the
doposits Of the Clearing House banks III
New York exceed loans by more than
SJl 600. 900 and that the condition OF the
banks IN othe- parts of the country IS
far stronger than reported at this time
wear ago. There has been an enormous
amount OF liquidation in all lines In the
last twelve months. Furthermore 1t ap-
pears probable that the movement VIII
continue. with the ultimate effect OF
STRENGTHENING all departments OF money
and business. Time money exhibited an
easier tendency yesterday, while COM
mercial paper was unchanged from the
rates prevailing at the close Of the last
week. The supply of mercantile offer
ings in the loan market is not large. At
this time last year merchants bills were
discounted in this market at AZ 10 D
nor cent for the best names, compared
with 3Ia 10 90. at present year ago
the reserves Of the local associated banks
stood at approximately Slo.WUOo,
apajns, "A little more than S36UOvOO re-
-, SatnrHa "a CLEARING House