New-York tribune., 1912-01-08
FINANCIAL MARKET
Money Ease Here and StrlngenCy
Abroad-BusineSS improving.

restored and operations being conducted
on an expanding scale in many lines CT
industry and trade, rejecting the grad
ual abandonment of the policy of hand
to-mouth" buying to which consumers
have so long adhered and their increas-
ing readiness TO contract for supplies for
expected future needs. Bank clearinSs
are swelling in volume, an index OF the
general Improvement; climatic conan
tions have been favorable to the first OF
the coming seasons crops-winter wheat
and tho steadness Of the secur'tles
markets at fairly high levels is an lndi-
cation of the strength of underlying
conditions. The feeling, however. among
business men and financiers alike is ono
Of hopefulness rather than unqualifed
optimism, for recognition is given ny
them TO the possibilities OF political dis
turbance-whiCh are usually probaolll-
ties in a year in which President is to
be chosen-and certain current Congress
sIonal signs and portents, and to the
fact Of money stringency in forelgn
financial centres, which, II 1t shall con-
tinue. will require further assistance
from this country, the loans of which In
Europe are already upward of Sloo.-
600, 600. Money is accommodating mere so
rapidly as to have brought rates for
both call and time accommodation down
to almost drug on n-the-market levels
the inflow from the interior being OF
volume almost without precedent ior
this time Of the year, and the cash sur
plus reserve above legal requirements OF
the Clearing House institutions exceeds
$27,OO0OO0.
The money from interior points comes
here. however, because of the lack OF de-
mand for it's use at those points and the
desire Of the forwarding institutions to
find somewhere a profitable employment
for their surplus funds. and the trans
fer is a demonstration. II demonstration
be needed, that the demands of COM
merce and industry are still far from
being at the flood, and Is further an m
dication that tho recovery from panic
effects in the West has not yet made :he
progress seen in the East, just as the
full measure of the panic's blight fell
upon the Western country later than
upon the East.
The tension upon the European money
markets, which was felt with especial
force at the end of the year. is now re-
ported TO be relaxing, but it cannot yet
be known whether or not the relaxation
is to be permanent. The strain has been
at Berlin, and in less measure at Paris,
London feeling comparatively little OF IT.
The urgent demand for funds in Berlin,
indeed, has been locally seen in the high
bids made here by German institutions
i'm the latter part OF December for short
term loans, a large number OF which
were arranged All Of these loans Will
mature in the current month. and thcir
having off or their renewal will tend TO
show whether the German money mar
ket situation has definitely improved or
whether German banks must continue
TO be borrowers Of foreign capital. The
foreign exchange market here has been
strong during the week, one of the con-
tributing causes Of the advance in de-
mand sterling having been buying by
bankers with the purpose of increasing
their credits In view OF an expected
further foreign demand for loans. The
position in Paris, as in Berlin. is far
from that of ease. Last weeks state-
ment Of the Bank of France showed a
decrease Of more than SIOOO0OO in gold
holdings, and the week saw shipment
of 100000 gold from this city to Bucnos
Ayres for account of French bankers, a
movement which Will probably assume
larger proportions.
But If the money strain abroad is 10
continue, reinsurance against world
wide demoralizing effects is TO be found
in the extreme ease in money here, de-
spite the vast amount Of American funds
now on loan I'm Europe; for, as In this
age money flows where II is needed, the
further requirements of the Continent
can readily be met, and without emEar-
rassment to the needs of business here,
in which the expansion. although steady
and certain, is not likely TO become RAPID
within the next few months.
The abnormal case of money has MT
served TO stimulate stock market trad
ing during the last week. on Tuesday,
the first business day of the year, there
was encouraging activity, at rising
81,
market moved without direction. with
irregular price changes and small trans
actions. Union Pacific was constantly
under pressure. because Of its poor ear
nings for November and the belief that
coming monthly statements would show
increased maintenance charges; but the
net result OF the weeks operations in the
issue was a loss OF Il point. Steel COM
mon, the leading representative OF IN
industry in which constant business i'm
provemept is reported. gained lh points,
and, although trade reports of the state
of the copper industry are highly cheer
full, the net advance i'm Amalgamated
Copper was only u point Much had
been hoped for from the 'reinvestmeEt
buying" which had not made itself evi-
dent in the latter part OF December, but
the investors to whom record disbursc-
ments Of interest and dividends are
being made this month have thus Ear
shown little disposition 10 invest their
new moneys in securities, the bond mar
ket as we'll as the stock market being
still dull, although firm. The heaviest
dealings in bonds. and at about the best