New-York tribune., 1911-09-10
FINANCIAL MARKET
Bank Statement Figures Show
Small Loss in Excess
Cash Reserve.

Stock market prices opened below the
closing of the preceding day under the
influence of heavy outpouring OF secu-
rites. and while enough support was
offered TO prevent acute losses the gen
eral tendency was in the direction OF
lower quotations throughout the TWO
hours of trading, except Tor prlel
neriod before the end, when a slightly
firmer tone developed, as a consequence
of covering by traders who did not care
TO remain short over to-day. In the
early dealings there was large amount
of short selling, but there also was gem
uine liquidation. 1t is conceivable that
in the event Of a continuation OF the de-
cline some important speculative ac-
counts will be forced upon the market as
result of the gradual shrinkage or
margins that until a few weeks ago
were considered ample to meet all con-
tingencies. Commission houses were not
carving much stock for small operators
and their sales in recent days have not
been for the ordinary public trader
Actual Hduidation has been chiefly Tor
the account of big spectators. The
metal shares were weak features; also
Canadian Pacific, Missouri Pacific, Read
ing and Baltimore d Ohio, the last
named declining to point that GER
,ainlv discounted a possible reduction in
the dividend to > per cent.
Bear traders are not satisfied with pre-
dieting a > per cent rate for Baltimore &
ohio. They now insist that the directors
will place the stock on per cent basis
at their next dividend meeting. Action
on the dividend will not be taken until
January, and talk Of reduction is rather
| premature, especially as the company is
earning its full q per cent on the COM
mon. The heavy decline in Canadian
| Pacific brought out many speculative
accounts. against which margins had
! become exhausted. but offerings APP
peared to be well taken. Clearing House
! figures presenting the actual position OF
! banks at the close of business on Friday
| showed that much Of the loss in cash
/ holdings known TO have taken place
! earlier in the week had been made up
| before the close, a further reflection OF
/ this being found in the average state
nent which reported decline in cash
Of 81 900, ,0OQ, against the actual loss OF
S915,O0O Loans expanded at the end of
the eek, and as a result OF all changes
the actual reserve above legal require
ments decreased S2,29S, go, compared
with a reduction in the average exhibit
of 9G63 $50. Total excess cash reserve
is now $23 264, 100. Loans are still we'll
above deposits, but the difference is not
so large as appears on the surface, as
the banks include in their loan account
securities owned.
Statements made by. various financiers
and railroad men regarding conditions
in the country and their predictions re-
Larding the course Of business in the
rest of the year and in the next twelve
months are not calculated to inspire con-
fidence in speculative circles, but the
data collected by the commercial
agencies ought to encourage the idea
that all is not lost. Actual improve
ment in the country's industries is re-
ported by both Dun's Review and
Bradstreets, and their advices are
borne out by the record of bank clear
ings and railroad earnings. No one eX-
pects a boom in business pending the
cf I'D
certainties. Extreme conservatism is
noted in all lines Of trade. but 1t is diff
cult 20 find any weak feature in the
underlying situation. and IL is hard TO
reconcile tbe views of Mr.. Hill and other
"Dig" men TO conditions as they actually
exist Although the harvests this year
NAV be small In comparison with the
enormous and record breaking crops OF
1910 they Will compare fayorably with
n ton-year average and while the labor
outlook At the moment is not salts
factory there is no good reason to sup
pose that tn Industries Of the country
win 90 10 pieces because laboring men
demand higher wages and greater recog-
milton Of their unions.
There are many men out OF work al
ready and places Of strikers will not be
difficult 10 fllI. Wall Street traders are
20 besrish that they are looking ahead
as, far as next April. when. they assert,
the anthracite miners will lay down their
tools, failing 10 consider the fact that
while the agreement between the miners