New-York tribune., 1911-01-07
BANK STOCKS ON STOCK EXCHANGE.
FINANCIAL MARKET
Sterling Exchange Advances
Increased Demand for Bonds.

On light volume or DusinesS sum
market prices. after opening strong, de-
yeloped a reactionary tendency tna'
lasted until the last hour, when firmer
tone developed. with final quotations for
the larger number Of issues at small net
gains as compared with the closing or
the preceding day. A sharp decline In
call money in the afternoon appeared 10
he responsible for a resumption Of bull
ish operations, but the advancing move
ment was not accompanied by any note
worthy increase in the volume OF trad
ing. In most stocks transactions repre-
sented little beyond the dealings OF the
professional element. While stock trad
ing was dull, an active business was re-
ported in bonds. the demand for mort
gage securities covering a large NUMBER
OF issues and rejecting purchases both
for speculative and investment account,
American Tobacco IS and rs, United
States Steel refunding 5s, Burlington
Joint Is and Norfolk & Western con-
vertible As being features. Tobacco Sc
curities, including the common stock on
the curb. were unusually active. in spite
Of the dismal talk in bear quarters of
what would happen in the event OF
decision unfavorable to the company in
the suit now pending against 1t In the
Supreme Court. There was little in the
character OF the days business in stocks
that supplied much encouragement to the
advocates OF a sustained upward move
ment in prices, but on the other hand,
hear operators were unable TO bring out
stock, while substantial interests did
nothing 10 help along the early decline.
Current conditions do not warrant an
important movement In either direction.
Outside of the heavy increase in gross
reported by the Great Northern for De
cember monthly railroad earnings re-
ceived in the day were not calculated to
arouse enthusiasm in speculative circles.
The ST. Paul showed for November a
decrease in net of S763, $50 in the face OF
a gain in gross of S193. .9O6, and the Mis-
souri, Pacific a loss in net of S346,SOl,
against an increase in gross of SS2O6l.
An easier tendency was reported in the
money market, while decided strength
developed in sterling, demand rates ad-
vancing % points, with subsequent
slight reaction under the influence or
heavy selling by interests recently
known to be short of exchange. Higher
discounts in London and the expecta-
Il n tinnS New
York. together with an absence OF an
active supply OF bills here, were respon-
sible for the rise in local sterling rates,
but there was nothing in general condi-
tions affecting money and exchange at
home and abroad that suggested the
probability Of exports Of gold from New
York in the immediate future. Sudden
changes, however, are common in the
foreign exchange situation, and it would
therefore not be safe to say that an
outward movement of the yellow metal
will not take place I'm the first part of
the present year. 1t is quite likely that
there will he a large accumulation oI
money at this centre in the course of
known changes in bank holdings since
last Friday to-day's Clearing House
statement should show an increase in the
reserve above legal requirements OF the
associated institutions. The banks have
gained more than S1,0DO,OOO on their
operations with the interior in the last
five business days, while they have
gained neY from all known sources up
ward Of S3.OOOU0D. Shifting OF loans in
cident TO the January disbursements
the unknown over -the-counter movement
of cash and the renewal of maturing
January loans make it difficult. how
ever. TO estimate to-day's probable bank
exhibit. 1t is evident, nevertheless, that
the usual January flow of currency to
this centre has set in