New-York tribune., 1912-02-14
BANK STOCKS ON STOCK ExcHAr
FINANCIAL MARKET
Money Rates Unchanged, Despite
Lower Bank Reserves.

Although the stock market was weak
and inactive in the early trading. final
quotations showed substantial advances
as compared with Saturdays final fig
ures. the upward movement in the last
hour OF business being based upon COW
ering of shorts and buying by substan-
tial financial interests. Good buying
was reported in the copper shares, in the
Erie issues, in Reading. in Union Pacilc
and in United State steel common
while the so-called Hill stocks and st.
Paul also were well taken. Professional
traders made an attempt to bring about
a selling movement in the first two hours
of business, but there was no response
from the public or from day-to-d day deal
ers in commission houses. The general
public is neither buying nor selling
stocks for speculative account. Big Wall
Street interests are taking stocks on de-
clines, and they are supporting the mar
ket when they feel that support is need
ed. Strength in the Erie stocks appeared
to be due to the good earnings OF the
company in recent months, and the ex-
pectation that at no remote period the
first preferred will be restored to the
dividend column.
The Erie Railroad has made remarka-
bic progress in the last two years In the
matter of physical improvements that
have increased its earning power and
placed il in a position to secure traffic
that formerly went to other roads. Like
the Southern Railway, the Erie Is backed
by financial interests who believe In
spending money now TO secure handsome
results in the future. Doubtless the buy
ing of Union Pacific was based upon the
remarks made by the president Of the
company regarding conditions in the ter
ritory served by the Hartman lines
and conditions affecting general busl-
ness Mr. Lovett thinks before he
speaks, and when he says that business
in the country is improving it may be
taken for granted that his remarks are
founded upon well digested facts. Great
Northern and Great Northern Ore cer-
tificates were helped by the testimony of
Mr.. Hill before the Stanley committee
in which the big railroad man placed a
value of s5OO,O0O.00j on the iron ore
holdings owned by the interests identi-
fed with the Great Northern Railway
shorts i'm Steel common were active buy
ers Of that stock; also of Reading and
Union Pacific. Little stock is taken in
the idea that the earnings Of the Union
Pacific for January will show heavy
decline as compared with the same time
in 1911.
on their operations with the Sub
Treasury the local banks have lost since
last Friday upward Of s4,000,000. not
withstanding that in the same time fed
eral Treasury disbursements have been
in excess of receipts. Payments at this
centre to the government are larger than
at any other point, while the liquida-
ton OF government obligations involves
q movement of money TO all parts of the
country Furthermore. interior banks
that have obligations to settle for their
customers with the government conduct
the operation through their balances
with their correspondents here. which
naturally results in Zig flOw of money
! from the Clearing House institutions to
federal vaults. Although Saturdays
bank statement figures showed further
loss in cash and reserve holdings, there
was no change in money rates yesterday
and no indication of higher quotations
in the immediate future. 1t will require
a large reduction in reserves TO bring
about stiff market for loans And un-
til a much higher money market devel-
ops easy rates for foreign exchange will
be out of the question. owing to the alb
sence Of a local demand for money our
credits are moving TO Europe. where
funds can be placed at figures above
those prevailing here. The govern
ments report of the countrys agricultu-
raj exports, received yesterday shows a
slightly smaller total i'm money value
than in the same month last year, owing
chiefly TO the lower price of cotton.