New-York tribune., 1911-09-30
FINANCIAL MARKET
Banks Lose Upward of $3,000,.
900 on Weeks Currency
Movement.

Until the late afternoon stocks were
firm. with advances IN the larger num-
Der Of issues. especial strength being
shown by Reading, United States Steel
and Union Pacific, the last named And
ing a good market in spite Of the critical
labor situation on the Hartman lines
Sentiment was encouraged by President
Taft's reassuring remarks in his Water
loo speech. but 1t apparently will require
something more than Improvement In
sentiment to bring about q sustained
bull market in the immediate future.
Improving sentiment, however, is a step
in the right direction. as II begets conf
dence in business quarters and tends to
eliminate timidity in mercantile and
financial circles. Although there are
enough uncertainties in political and
labor conditions 70 discourage the idea
that prices for stocks are now TO enjoy
al. uninterrupted advance, experienced
market judges believe the backbone Of
the bear market has been broken and
that further raids upon prices will be
entirely in the interests Of unimportant
traders. The big bears appear to have
cashed their profits.
Selling that developed in the last hour
was wholly for the account Of small
speculators. who always are enthusiastic
At the tail end Of q downward move
ment, and who know 10 their own salts
faction that substantial interests will
not be able to maintain stability in the
market Current conditions appear to
point 70 o backing end filling market,
with q decline in the volume Of trading,
pending the development OF some stimu-
lating factor. Italy's declaration OF war
upon Turkey came after the close Of the
European markets. but in our own mar
ket the announcement was considered
by traders 3 satisfactory reason for sell
ing. Doubtless II will be utilized still
further to-day # rhe foreign bourses
become unsettled. The larger number Of
prominent issues ended at small net
losses. American Tobacco preferred.
Northern Pacific, Missouri Pacific and
Reading beine exceptions. Tobacco
issues on the Stock Exchange and on the
curb were strong features, especially the
bonds, which were considered TO be in
particularly good position under the re-
ported terms for tho reorganization Of
the American Tobacco Company Under
this alleged plan three new companies
will be formed, and the present 6 per
cent bonds will be rated at 120, the 4
per cents at 80 and the common at par.
According 10 the known movement Of
money in the week the local banks have
lost net upward Of S3.000,O0O I'm cash
holdings due to operations with the Sub
Treasury. On the interior movement
there was a small balance in favor Of
this centre, while on receipts Of new gold
n rain Of more than 100000 was re
ported, against a loss to the government
NJ S5,G15,OOO. Owing to the cross move
rnents in the stock market In the week
there has been a big shifting and re-
duction Of loans. which doubtless viii be
the chief factor in to-day's statement Of
the Clearing House showing the position
oS the banks at the close Of business
yesterday. The banks will have to suf-
fer large decline in the reserve above
legal requirements before higher money
rates can be expected, and from current
N indications the money market through
Iout the autumn will be one Of the cheap
y est for a fan season Of modern years,
owing 20 the absence Of an active de-
mand here from Western and Southern
points for funds incident to the financing
Of the crops and 10 the lack Of inquiry
from commercial quarters. OF course, a
heavy export movement Of gold 70 Paris
would tend 10 take the money market
out OF its present state Of stagnation.
After the close Of business yesterday il
was reported that 81, 100000 Of the yell
low metal had been engaged for ship
ment 10 Paris. IF the Bank Of France Is
willing 10 pay interest on the gold in
transit. exports can he made at the pre-
vailing price Of francs in the local for
eigu exchange market.