New-York tribune., 1911-12-19

FINANCIAL MARKET
Banks Lose Cash to Sub Treas
ury, but Gain on Interior
Operations.

issues price tendencies were IN the olre0-
ton of lower levels in the best part Oh
the dav. the securities Of the anthracite
coal companies supplying the chleI eA-
ceptions to the downward movement
I,ehigh Valley advanced more thah =
roints and Reading and Erie responder
m q certain extent. but the strength III
+bis denartment Of the market was WIFI
ont much effect upon the general Hs''
which was reactionary under the liih"
ence Of realizing sales and bear press C.
Sentiment, however was not Dedi ISL
selling as rule being based wholly upon
snaculative considerations. Wall street
hos tho notion that Lehigh Valley STOCK
will sell at 200 before it suffers a ma
ter,al setback, and that In January thei
NIL, ha "nelon cutting for the STOCK
ho,ders Irrespective Of the possibility OF
on extra distribution 10 the holders oi
T.ebigb Valley, the present advance III
the price of the stock appears 10 De JUS
tiAed bv the strong financial and phys-
icaI position of the property ana the ~
ner cent dividend the stockholders are
receiving. Amalgamated Copper, United
| states steel and Union Pacific were
heavily sold by traders who desire 10
convert paper profits into cash. but the
decline recorded by the three issues was
NOT IN proportion to the efforts expended
nv traders who thought the development
~ realizing would make it an easy mat
ter to carry prices well under the CLOS
ing in Saturdays operations
| stocks sold were we'll taken ana IT
view of the heavy liquidation repor'eu
.be small declines recorded strengthened
confidence in the future Of the marhe'
There was nothing in the days news ue-
,.o,onD,ents that frightened holders ol
stocks To be sure traders VINO were
orvious 10 buy at cheaper levels predlc'-
"a +ro,,rle because President TAFT mao
,,o,ed IN abrogate the treaty ot ioo-
with Russia, but the average specuIdtoi
and investor did not consider TINS uiplo-
matte move on the part OF the Freslueh'
good reason for parting with their holu-
/ iree ;n a declining market. The marker
went down Of It's own weight, and In the
/ last bour even the hard coal issues DC
clined Reading exhibiting conspicuous
weakness as compared with It's Garner
strength. Speculative investors sold TINS
stock in the afternoon and went over 70
Iehigh Valley. Weakness In Union Pa
cific appeared to be based on the trafiic
alliance between the Chicago q North
western and the Northern Pacific. Wall
Street develops many silly reasons tol
/ selling stocks.
Money rates show no important change
| from the quotations reported at the close
Of the week, but it is quite probable that
before the end Of the year frmer ten
dency will develop as consequence OF
the demands upon the local banks incl
dent to the financing Of the heavy Jam
uary interest and dividend payments
The banks at this centre are not weak In
cash resources, and higher rates foT
funds at the end Of the year will not be
accompanied by disturbance In the
money market, as conditions affecting the
financial situation are absolutely sound
while the same thing may be said OF con-
ditions underlying our industries. Ad-
vices from trade centres are decidedly
encouraging. Bankers report better a.
mand from mercantile circles for accom-
modation. Rates for time money for six
months are easy, for this period of the
year, and the best grade Of commercial
paper Is being discounted at from "A TO
AZ per cent, against 4% to 5A per cent
| at this time year ago. The local banks
have lost more than $1.0000OO on their
operations with the Sub-Treasury since
Friday night, but against this loss a
substantial increase in receipts OF cur
rency from the interior is reported. EX-
change at out-Of-town points Is running
I'm favor OF New York and all indications
point 10 a large gain by the Clearing
House institutions in cash resources at
the end of the current week. 1t is under
stood that within the last few days our
bankers made additional loans 10 Ger
many. but not at the 6h and 6A rate
reported i'm the Street yesterday. Renew
ais of loans for German account have
been made at 5h per cent for short
time only.