New-York tribune., 1911-09-02
FINANCIAL MARKET
Local Banks Lose Upward of
$1,000,000 on the Weeks
Currency Movement.

on a light volume Of business stock
market prices moved in an irregular
manner throughout the day net gains
BEING reported by most issues. Trans-
actions were made up almost entirely OF
the operations Of an unimportant trad
ing element which was unwilling TO
make active commitments on either side
OF the account. owing TO the possibility
Of important developments over the
three day suspension Of business. as. for
instance, the declaration OF strike on
the Hartman lines or a serious change
in the Moroccan situation. Wall Street
is timid and sensitive at present. 1t is
always sensitive, but not often timid
and il probably would forget its fears
Just now If it could see any encourage
ment in the attitude of the great fnan-
ciers. who are saying nothing. doing
nothing and asking nothing except
high grade collateral for money ad-
vanced. Commission houses. with the
exception OF a few OF the leading
firms, are handling no speculative
at the moment investment demand
for bonds is extremely inactive, which,
OF course. tends to discourage a demand
for new capital for new construction, ex-
tensions and general betterments by rail-
roads and industrial corporations. Stock
market prices were not affected by the
poor showing made by the government S
cotton report giving conditions as Of Au-
gust %. when the percentage was 49,,
compared with the record figures of S9.l
at the same time in the preceding
month A falling off In August always
is looked for. and while the reduction in
the current instance is larger than usual.
IL should be born in mind that the de-
cline is from a percentage that fore
shadowed the biggest crop on record
that 1872 compares with a ten-year av-
erage for August % Of 1873, and that the
acreage this year is the largest In the
history of the South. Furthermore.
since the government compiled Its fig
ures there has been distinct improve
ment reported in all parts Of the cotton
belt. And then the government has a
habit of Understanding crop condi-
tions. The cotton market did not ad-
vance much and the bears showed little
nervousness.
According to the known movement of
money in the current week the local
banks have lost upward of 81 100000 in
cash holdings. which does not include
heavy transfers to the West made
through the Sub-Treasury yesterday.
on their operations with the interior the
banks showed a large gain which with
receipts OF new gold, offset TO a large
extent the heavy payments by the banks
to the federal Treasury. While local
banks sent $1,000 900 to Chicago and
S1,500,000 10 San Francisco yesterday,
the interior has not yet begun to with
draw to any extent funds from this CEN
tire incident to crop financing operations,
although. as pointed out in this column
at various times, out-of-toWn institu-
tions are conserving their resources by
settling obligations 70 the government
through their bank balances here. The
transfers TO Chicago and San Francisco
were special transactions, the $1,000, 600
sent to Chicago being in connection with
the financing of the Chicago Elevated
merger. and the amount sent TO San
Francisco representing funds deposited
10y local institution for transfer to the
credit of the Treasurer of Hawaii.
Usually at this time the regular flow Of
currency from New York TO the great
agricultural section of the country is
we'll under way, and the fact that the
demand so far has been light supplies
pretty good evidence Of the strong f1nan-
oial position of the farmers and the large
cash reserves Of interior institutions, ex-
elusive Of their deposits in New York
banks.