New-York tribune., 1911-03-14
BANK STOCKS ON STOCK EXCHANGE
FINANCIAL MARKET
Banks Lose Substantial Amount
of Money on Sub-Treasury
Operations.

ODCI QtIOItos
Stock market prices moved in the direc-
ton ~ higher quotations in the best part
Of the day on a light volume Of business.
Net gains. however, were confined 10 frac-
tions. as rule. the advancing tendency
failing - attract an outside speculative
demand for securities or an active IN
ouiry from Wall Street interests, al
though the latter were prominent in the
bond department Of the market, in which
operations covered a wide range OF MIS-
cellaneouS issues. with the chief dealings
in the Wabash Pittsburg Terminal GER
tificates 4 fair degree Of activity also
was reported in the American Tobacco
As the movement evidently being in
sympathv with the course OF the stock
on the curb. where new high price for
the issue in the current year was re-
corded at 4>0 Holders of American
Tobacco securities are not at all appre-
hensive over the talk in some circles
/ that the intrinsic worth OF their invest
ment will be reduced by a Supreme
Court decision against the company IN
the case now pending before that
tribunal.
In the last wear the American To-
bacco Company, after payment Of
charges on more than S1o0.0CpooO of
bonds and regular dividends 10 preferred
stockholders. showed a balance equal 10
more than 60 per cent Tor the common
stock outstanding, against 20 per cent in
the year before Such an exhibit shows
tremendous earning power that cannot
be upset by anything the Supreme
Court may decide regarding the right Of
the company 70 operate under its present
charter. and the same thing may be said
Of the Standard Oil Company. the stock of
which is not being sold on the possibility
Of a decision against the concern favor
able 10 the government. The two COM
panies already have made their plans 20
conduct their affairs on new basis in
the event q decisions against them. II
does not appear likely that these de-
cisions will be handed down in the i'm
mediate future. Stocks were offered
OF tho Supreme Court decision uphold
ing the corporation tax law. but no sell
ing movement developed. The imnle-
diatc effect Of this ruling should be re
fi.c-ed in an increase i'm internal reve-
nrc receipts. as many corporations in
the current year have held back from
paving their taxes on this account, III
the hope that the law would be declared
unconstitutional The outstanding short
interest on the Stock Exchange appears
To- he large. Good news would cause
trouble i'm the bear camp.
Domestic exchange continues 10 move
agairst New York, and from current in
dications currency movements In the
rreseut week will show a substantial
flow of funds from this centre TO the
West. on their operations with the
sub Treasury the local banks have lost
since last FRIDAY more than S3"oWp
representing in large part payments BY
out-of-town institutions O. sums due the
government, b. drafts, payable 10 the
Assistant Treasurer OF tho United
states. on the New York correspond
ents ot banks IN other parts Of the
country. Operations OF this character
alvavs accompany the interior inquiry
for money 1T this point. While the
heaviest payments are made at this cen
trc 10 the federal government on Gus
toms and internal revenue account, the
prlsent loss by the banks 10 the sub
Treasury is due chiefly Ia transactions
for the interior. as at the moment e%-
pendituree by the government arc run
ming in excess Of receipts, the deficit on
ordinary income account since March /
amounting to more than S2.2Nl,OW". com
rarcd with a surplus in the same time
at wear Of SsJl.3Gl on all accounts
the Treasurys dehcit for the fiscal wear
H. date is $23. s29.2iI. compared with
deficit Of S44.977 IG3 IN the correspond
ing period in 1910
Tho working balance IN IN, federal
Treasury is only slightly IN excess ~
S9G. .O0i. 900. and now that the Secretary
Of the Tree sury has the authorization of
Congress 10 issue Panama IS without
the banknote circulation privilege IL Is
quite likely that the bond market soon
viii be asked % tender offers for new
government loan. Panama o. when IS
sued have been quoted on the curb above
iO1. and the chances are they vii! be
readily absorbed when actually issued.
The decision in the corporation tax case
-. s.,-cr of the Government prChIblv
settles the tact that the Panama bond
issue viii be limited 10 S5u,OJWp IN
stead cf 500 O01, 900 because II viii not
rDiLLrLI .hA w AAl IL