New-York tribune., 1911-10-12
FINANCIAL. MARKET
Banks Losing on Their Opera
tionS with TIE Sub Treasury.

Selling pressure IN various parts of the
list in yesterdays market was not ef-
fective in bringing out stocks. while II
failed to carry prices TO materially lower
,avele Outside Of Reading fluctuations
ss a rule among the prominent shares
were confined 10 fractions, and in spite
Of efforts 10 drive the hard coal issue 70
ouotation under its low point OF the
year its maximum decline was not large
enough 70 make a new record. ana IN
proportion TO the activity of the pears
against the stock its loss was relatively
small The general market again
showed decided resistance 20 operations
for lower prices. There was however
no apparent disposition on the part OF
substantial interests 10 work for hlsheT
figures and no indication Of extensive
ironrovement In the immediate future
II is understood there is certain
amount Of stock for sale at quotations
slightly above those now prevailing but
q does not seem likely heavy sales VIII
he attracted until the market has moved
considerably above the current level;
and in view Of the various uncertainties
IN the general situation the assumption
is not warranted that a sustained ad-
vance will develop until these uncertain
ties have been eliminated. The Ameri-
can Tobacco bonds We're strong and ac-
tive. the extent Of the operations IN them
ennhasizing the theory that under re-
organization these issues will be worth
as much as if not more than their inquired
valuation prior TO the government ac-
ton against the company. Most stocks
closed strong and at net advances.
So far IN the current week the local
hanks have lost more than S1,OO0,O00 on
their operations with the Suh-Treasury,
despite the fact that ordinary eXpendi-
lures OF the government are running IN
excess of receipts. The government col
Iects the larger part Of its income at this
centre. while its expenditures are more
generally distributed throughout the
country. Furthermore interior institu-
tions are now paying obligations due
the federal Treasury by drafts 10 the
Assistant Treasurer Of the United States
IN New York on their balances held with
their correspondents in this city. The
local banks are shipping more currency
10 out-of-town points than they are re-
ceiving from the interior, but the out
ward movement has not reached impOr-
tant proportions, and from current indi-
cations the autumn Withdrawals from
here will be under normal. Bankers are
experiencing difficulty in finding an out
let for their surplus funds, and a move
ment of gold TO London, therefore, would
less would tend 10 bring about a more
profitable level for rates in the loan
market. which are now well under those
prevailing in foreign capitals.
The contango on American stocks IN
the London Stock Exchange settlement
this week was AZ per cent, against call
money quotations here Of from TO 2A
per cent and time rates Of 3i4 per cent
for sixty-day loans. London private
discounts are quoted at 35s to 324 per
cent. while i'm Berlin the minimum is
per cent. London has sent so much gold
TO the Continent. Egypt and South
America, with indications OF further de
mands from the same sources. that II
may seek 10 reinforce its holdings by
calling upon the New York market,
which al present is more under the con-
troll Of the difference between interna-
tional money rates than our favorable
Merchants are doing little In the COM
mercial paper market, as they do not
care TO pay interest on stocks Of goods
for which there Is no active demand