New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-10
FINANCIAL MARKET
Local Banks Gain More than
SIS, 100000 on Weeks
Money Movement.


regular manner throughout the day with
small net gains in the larger number or
issues at the close. Trading in the gen.
eral list was not active and business
was poorly distributed, the chief part or
the total transactions being supplied by
the Hill shares. Reading. Union Pacihc'
United States Steel Erie. American Beet
Sugar and Canadian Pacific. the last
named making another new high record
and closing at q net advance or more
than two points. Earnings or the "a
madam Pacific are heavy and we'll IN
excess Of dividend requirements. The
country through which the road runs Is
gradually growing up to the mileage or
the Canadian Pacific lines. vast amounts
Of money are being expended upon the
property. and from all indications its
stock eventually will sell at level much
higher than that now prevailing. There
are certain Wall street interests who
bought the stock years ago when It was
quoted in the neighborhood OF par. which
compares with yesterdays closing OF
242L. and they still hold their certif-
Gates And there are certain Wall Street
interests who are now buying Northern
Pacific on the theory that 1t will become
q second Canadian Pacific as far as its
price is concerned.
The Erie issues were IN good demand
on An advancing scale Of quotations. Erie
common next to United States Steel be
ing the most active stock dealt in. the
movement being accompanied by the old
rumor that the Erie property would pass
To the control Of the Canadian Pacific.
Wall Street has determined TO sell the
Erie TO some other road. and as the idea
Of fits purchase by the Great Northern
has not been enthusiastically received, 1t
has fallen back on the Canadian Pacific,
which 1t calls the logical buyer. The
Canadian road might be logical buyer.
but there is little chance that It will
become an actual purchaser. Denver
Rio Grande preferred sold down on small
dealings. and 1t was quite naturally as
eImed that the dividend would be re-
duced next week. traders arguing that
a price Of 65 for per cent security
reflected n mighty uncertain tenure for
the current rate. Announcement that
the Appellate Division Of the Supreme
Court had reversed the decision Of the
Public Service Commission in the Third
Avenue reorganization matter and had
approved the plan of the bondholders for
the rehab litation OF the property was
followed by sharp advance in the price
of the company's securities. The bond
holders plan assesses the stock 45 per
cent TO raise the money necessary for
the roads reorganization. but in return
for this assessment the stockholders are
to receive S45 in new stock and $40 in
first refunding mortgage fifty year per
cent bonds. In the bond department
the Wabash Pittsburg Terminal As were
strong features. Cotton and grain mar
kets were strong and excited on reports
Of extensive lack Of moisture In the
Southwest.
According TO the known movement of
money in the week the local banks have
gained more than S5OO0OOO in cash
holdings. owing to a heavy flow Of cur
rency from the interior to this centre.
a week ago. while shipments from here
show a material contraction. At the
moment the chief out-of-town demand
for New York funds comes from the
South and from Canada, Withdrawals OF
gold from the Sub-Treasury for Mont
real account having again assumed big
proportions. with the prospects of an
active inquiry from this source through
out the month. owing to the industrial
boom now under way in the Dominion.
In the coming weeks doubtless there
will be various changes in the money
market situation favorable to higher
level of lending rates, but 1t is not be-
lieved in the best informed money mar
ket circles that quotations will approach
to the large supplies OF idle cash on
hand and the ability Of this country to
draw gold from Europe If the metal
should be needed here The tendency
in the foreign exchange market is dis
tinctly downward, with the Paris rate
practically at the gold importing point.
Paris, however, does not offer a free
market for gold. and it is not likely that
shipments will be made from there to
the United States, although it is quite
probable that exports from London will
be made, despite the fact that the stu
alton here does not call for additional
A.