Daily Kennebec journal., 1912-09-09
Money Market Conditions
Ruled Stocks, Last Week.
Call Loan Rates Rise 10 High
est Of the Present Year.
Crops Situation still Remains 0ptl.
mlstlc--Iron and Steel Active.

New York, Sept. 8.-The position OF
the money market continued to be the
ruling influence on the stock market,
last week, to the exclusion largely of
business, industry and politics. The
weeks belated opening, Tuesday, saw
a prompt response to the showing of
the previous Saturdays bank state
ment in the rise of the call loan rate
above per cent. to the highest of
the present year.
New York Clearing House banks
only rarely have to enter upon the
season of the greatest interior demand
for funds with the surplus reserves
below $1,000, 900, as was the case with
the actual figures of the bank state
ment when last week opened With
drawals of cash from New York bank
reserves during the crop moving sea-
son run from $4,000 600 to $75, 100000
as rule. There are reasons why
they may run heavier than usual, this
year. Bank reserves at interior points
are lower than ordinarily, In proper
ton to deposits, owing to the expand
ed credit position Large crops, high
prices and recovering trade all prom
ise demands for money greater than
the ordinary.
The foreign exchange position is af-
feeted by the heavy current imports
of merchandise, while the value OF
exports is suffering from the scanty
remnant of last years grain crops
available for shipment abroad For
eign money markets have their own
problems to solve and are sensitive
To a resort to them by New York The
dependence of the foreign money
market upon outside assistance for
carrying through the important octo-
Der settlements remain source of
soiicitude.
Various steps We're taken. last week,
to adjust the affairs of the banks to
present and prospective requirements.
The rise In call money indicated some
recall of credits from the stock mar
ket Heaviness in the tond market
and in short term notes showed the
banks Were selling out some OF their
holdings of securities to put them
selves III funds. A sharp fall In sterl-
ing exchange rates reflected a call
on the London money market. an cas-
ing of the private discount rate there
encouraging this movement Lending
of call money in New York for inte-
rior banks had no effect here on the
actual supply. balances with the New
York banks being drawn on for that
purpose.
The contrast of the favorable ten
dency of other news confirmed the
belief that 1t was the tightness of
the money market. which weighed up
on value of stocks, as did the rally
in CT nlro nh h.
receded. The quiet tone and narrow
movement of Wednesdays market.
after the Vermont election. were as
cribed to indifference regarding poll
tiles
The effect of the highly favorable
government report on condition of
cotton as of Aug. rs was modified by
fears of deterioration since the date
of the report, the usual August de-
cline in condition apparently having
been deferred. owing to the known
lateness of the crop. Other crop news
continued extremely encouraging, with
further stimulating effect on the de-
mand for merchandise. This weeks
government report on grain crop con-
ditions is expected to confirm this
promise.
Railroad managers are confident of
heavy fall traffic. but are growing
anxious about providing facilities to
take care Of it. Shortage Of freight
cars has already appeared In various
localities The outcome Of the arbi-
tration of labor demands ON Eastern
railroads keeps their prospects un-
der a shadow.
The iron ana steel trade maintains
its furious activity. with last months
pig iron production at a record, the
September 1st capacity further in
creased and the price rising. August
specifications on steel products We're
at an unprecedented rate and this
weeks report of the United States
Steel tonnage of untitled orders, as
of September !, is expected to show a
handsome increase.
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