New-York tribune., 1912-01-14
FINANCIAL MARKET
Bank Statement Figures Show
Gain in Cash and Reserve
Resources.

On a small volume OF business stoCh
market prices moved toward lower levels
in the two hours of business, net losses
as a rule being confined TO fractions
Reading and Canadian Pacific among the
prominent issues being exceptions at de-
clines of more than one point. Lower
prices were brought about by realizing
sales and bear pressure. There was no
investment liouidation and no evidence
of uneasiness in banking quarters over
the future of the market. Bankers are
rather optimistic regarding the OUTLOOK
for money and business In the current
wear. but at the moment they are doing
nothing to encourage speculative actiV-
ity on the Stock Exchange, as they be-
lieve the market needs rest and that
prices in the larger number Of securities
have fully discounted the improvement
that has taken place in the countrys
industries and the Improvement that
doubtless will develop in the months TO
come Notwithstanding the report that
Reading stockholders would receive a
90 per cent dividend applicable TO pay
ment for an allotment of stock OF coal
selling company the company's common
stock closed weak under moderately
heavy selling pressure by speculative in
terests who recently accumulated large
lines for long account on the well found
ed idea that the advance of Lehigh VAL
lev would exert a sympathetic influence
on Reading shares. Good buying was
reported in United States Steel, but
sales were heavy enough TO leave the
price Of the issue at small fractional
loss al the close Of the market. The
business Of the United States Steel Cor
poration is increasing at a rapid rate,
and interests identified with the concern
are not worrying over the proposed re-
duction in tariff duties on steel imports.
especially as Mr.. Carnegie in his testi-
mony before the Stanley committee eX-
presses the opinion that the steel bust
According to the opinion of men well in
formed regarding the iron and steel in
dustry, the present expansion in the
trade is solid in character, without any
evidence of the development of a spec
ulative boom.
Clearing House figures showing the
actual position Of the associated banks
and trust companies at the close of bust
ness on Friday night do not suggest
higher rates for money in the immediate
future, despite the fact that loans in the
last week increased more than 5000, =
coo. Doubtless the chief factor in the
expansion of loans was the tying up of
securities incident to the Equitable fire,
which caused suspension Of deliveries,
and the shifting OF accounts from Lon
don to this market. AS a result of all
changes the reserve above legal require
ments i'm the actual statement increased
S7711, 200, the increase in loans being
offset by large gain in cash on opera
tions between the local banks and inte-
rior institutions. The excess cash re-
serve as of Friday night stands at S34,-
9j0300, against an average reserve of
500 05S, go, the latter comparing with
$27 39S, $50 at this time last year, $50,
OO5 800 in 1910 and $25, 1888, 175 in 1909.
While the money market was nominal
yesterday, sterling exchange was active,
with rates for demand 20 points under
Fridays closing figures.