New-York tribune., 1911-09-01
FINANCIAL MARKET
Signs Developing of Better De-
mand at the Interior for
New York Funds.

The stock market was MADE UP III
large part of the operations OF an uh-
important professional element. Cover
Ing Of shorts incident to the approach
ing three suspension Of business on
the exchange was responsible Tor the
firm tone that prevailed in most parts OF
the list throughout the day. while III
tie investment buying IN various issues
was q contributing factor TO the better
tone reported. The quality Of the buying
has improved in recent days. quiet In
vestment purchases are noted. and there
appears to be increased willingness on
the part Of operators 10 consider the
actual worth of securities and the ex-
cellent income yields that can be OBJ
tanned at prevailing levels, a reflection
of which is found in the absorption OF
such high grade issues as American
Telephone and Telegraph shares, Union
Pacific, Reading, the Steel stocks ana
Lehigh Valley. The last named was
again under selling pressure in the early
dealings. but the buying on the decline
was good enough TO check the down
ward movement. International Har-
vester, which also was under pressure In
the morning operations, recovered the
larger part Of it's loss before the close.
Chesapeake G. Ohio was heavy at
times, on persistent rumors of cut IN
the dividend. AS the stock is now on
:, per cent basis and is selling In the
neighborhood OF 20, 1T may not be un-
natural to speculate on a lower rate,
especially as the company's surplus for
the first six months Of the current year
available for dividends shows a loss Of
81, ,60S,7I as compared with the same
time in 1910. Traders tried to raid the
market after delivery hour. but the
movement failed TO bring out stock, the
light effect Of the selling strengthening
the belief that for the time at least liqui-
dation had run its course. The closing
was dull at fractional changes in most
stocks, net gains predominating. Time
money continued to show a firmer ten
dency without any increase In the vol
ume Of business. The Bank of England
made no change in It's minimum rate Of
discount, and showed in its weekly re-
turn only a slight reduction in its per-
centage Of reserve to liability from the
high figure Of week ago. While the
British institution doubtless will lose
some of it's strength in coming weeks, II
is. like the New York banks, strongly
r 4 ln,,, dc
it's resources.
SO far in the current week the local
banks have lost upward of S6,OOO,OOO on
their operations with the Sub-Treasury,
and unless they have gained substan-
tial amount from the interior Of which
there is no indication IN the known
movement Of currency, to-morrow's
Clearing House statement doubtless will
show a falling off in cash and reserve
resources. This conclusion does not take
into account the loan item, but in view
Of money and stock market conditions It
does not appear likely that changes In
loans will be much of a factor in deter
mining the reserve above legal require
ments A week ago, in spite Of heavy
liquidation in the stock market, there
was a slight expansion in loans, and, of
course, there may have been enough
shifting Of loans in recent days to bring
about a totally different bank exhibit
than current indications suggest. The
demand from the interior incident TO the
financing Of the harvests is indirectly
reflected by the payment by interior
banks of obligations due the government
by drafts TO the Assistant United States
Treasurer here on their New York cor
respondents, but on direct movement
Withdrawals so far have been extremely
light, an unusual situation for this period
Of the year. A prominent railroad Off
Ger Informed the writer OF this column
Yesterday that from the advices received
from his agents in the West the farmers
have enjoyed so many years of pros
perity that they will be less dependent
upon the East this year than ever be-
fore for funds, because they have the
ready cash 10 pay for the gathering and
marketing Of their crops, and as a con-
sequence will not be compelled TO go into
the money market in order TO keep the
wolf from the door pending the time
when they receive payment for their