New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-04
FINANCIAL MARKET
indications Point to Reduced
Cash Holdings in To-mOr-
rows Bank Statement.

The declines forced by the profess
sional element in Wednesdays stock
market failed to induce overnight selling
orders for public account in yesterday s
early operations, the volume of commits
sion house business being extremely
light. with no suggestion in the Oh; -
acter Of the trading Of uneasiness on the
part of any one over conditions In the
country affecting the actual worth of IN
vestment securities. Most Of the buying
came from the shorts. Prices were brm
al fractional advances until the after
noon. when renewed pressure from the
bear element was effective in bringing
about lower levels I'm most parts of the
list, the downward movement being
helped by a report that John W. Gates
was dead. AS Mr. Gates has not been
an active factor in Wall Street for
number OF years, outside of successfully
financing his Texas oil company, fatal
termination Of his illness would IN no
way be justification for sales Of stocks.
At this time however when the larger
interests are doing nothing on the specu-
lative side Of the market. and when
there Is such a scarcity of real hear ar
guments. board room traders endeavor
TO twist the most inconsequential hap
penings INTO bear ammunition. The
afternoon decline was accompanied by a
fair increase in transactions but II
failed 10 bring out important support
the big" men apparently being quite
large short accounts would result in
heavy profits later. IN the season. Tho
chances are that when the short interest
reaches the proper proportion the old
time squeezing process will be insu-
tuted. Strength in the wheat market
on exaggerated crop damage reports
added 10 the enthusiasm Of operators for
the decline, while an advance in cotton,
which was wholly normal in view Of le-
cent declines. likewise contributed TO the
growth Of bearish sentiment American
Tobacco Is were weak features In the
bond department, and on the curb Stand
ard Oil suffered another sharp decline.
SO far in the current week the local
hanks have lost more than S3,500.OoO on
their operations with the Sub-Treasury,
including the shipments Of gold coin to
Canada. while the current course Of do
nestle exchange rates suggests that to-
DAYS estimated movement Of money
since last Friday will show material
falling off in cash holdings by the Clear
ing House institutions. Exchange Is
against this centre in the larger number
Of cities in the West and South. and as
the crops are approaching m early ma
tIrity il is quite probable that harvest
needs soon will become an important
factor in reducing bank reserves here
although it is believed that in the event
of a heavy drain New York will expert
ence no difficulty IN importing gold from
London, especially as the Moroccan war
cloud is rapidly passing. The Bank ot
England is in a strong position. It's
weekly return. published YESTERDAY.
showed a proportion of reserve to liabil-
ities Of 49, per cent, an unusually high
figure for this period of the year, COM
rarine with a ten-year average for this
week Of 490S per cent. London dis
Counts. however. arc somewhat lirmer.
and il is likely that better rates viii be
recorded in the fan. Investment and
speculative operations in the local mar
bet for foreign account are light in vol
nme at the present time, but our posi-
ton i'm the international money market
is being gradually strengthened by this
countrv's growing exports Of merchan-
disc which continue 10 run heavily in
excess Of imports. with every indication
If an extension of the movement IN the
rest of the year. Shipments Of cotton 10
Europe promise 10 be enormous ana
while export prices will not he as high
az recorded in 1910, the difference should
no offset by a gain IN tho actual volume