New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-31
FINANCIAL MARKET
Local Banks Continue to Lose
Money to the Sub Treasury.

Sharp declines in the early dealings in
Yesterdays stock market reflected a
hear raid rather than actual liquidation.
The movement failed TO bring out much
stock, although some of the recently ac-
cumulated bull accounts were thrown
overheard in the first few minutes or
trading, especially holdings Of Union
Pacific. which made a new low record on
the current movement, Reading ana
United States Steel. While traders as
serted that liquidation again was in full
swing. the market relapsed into dull
affair at the end of the first hour recov-
cred part Of its early losses and con-
finued relatively inactive until the close
with, however, further pressure in the
last half hour, which, like the selling
movement at the opening. failed 10
bring out important offerings Lehigh
Valley was a weak feature without af-
fecting the general list; also Interna-
tional Harvester. The general course Of
the market Yesterday and in the last
week encourages the idea that liquida-
ton has run its course for the time
being. Net changes in the last ten days
have been small. despite constant ham
mering by the bears, and according TO
the point of view Of many experienced
observers in Wall Street prices are
scraping bottom, although this idea does
not warrant plunging for bull account
on small margins.
The trading element is still bearish.
but in view of the big decline of the last
four weeks and the evident cessation II
real liquidation il hardly appears prob
able that traders pressure will be able
10 drive quotations TO materially lower
levels. OF course, if the so-called money
power should take it into its head to
break the market through it's control of
the money market much lower prices
than any so far recorded on the current
movement would be seen. But the large
financial interests are not working 70
bring on a stock market panic. The cost
would be too heavy. While most OF the
railroad companies reporting July earn
ings have shown a gain IN both gross
and net, the reports of the Union Pacific
and Southern Pacific, received yester-
day. make decidedly unfavorable com
parsons with the same time last year,
and back up the statements OF Union
Pacific officers regarding the need Of re-
trenchment and the unjustness Of the
demands Of employees, who threaten to
strike if such demands are not granted.
So far in the current month federal
Treasury expenditures have exceeded re-
ceipts to the amount Of more than So
100000. and in the same time the New
York banks have steadily lost on their
operations with the Sub-Treasury. a
considerable proportion Of the govern
ment's income is derived from payments
in New York, while government dis
bursements are not so concentrated.
reflection OF which is found in the ex-
cess receipts here at a time when fed
eral payments covering the whole coun-
try are we'll in advance Of general pay
ments made 10 the Treasury Further
more. interior banks have habit OF
paying obligations due the government
by drafts 20 the Sub-Treasury on their
New York correspondents and at the
moment a good part Of the loss by the
local institutions is due 70 this operation.
Time money at this centre shows -
frmer tendency but there appears 10 be
no immediate prospect OF the develop
ment Of an active market for collateral
loans or for commercial paper, offerings
of mercantile bills being light In spite Of
a good demand.
An enormous amount Of cash is lying
idle in the New York banks, while in
various small cities the banks have not
enough money 20 meet the requirements
Of home manufacturers and merchants.
And while rates for funds are easy here,
there are many towns where the banks
can lend al the money they have 10 put
out AT & per cent. The general banking
situation is strong, but there must be
something radically wrong when money
here Is in abundant supply yet idle, and
IN many other places active, although
light in volume IL is understood that
private banks in Berlin are Offering 10
pay ~ and 3A per cent for sixty days
deposits by New York institutions This
would give the lenders practically three
fourths Of ! per cent more for their