New-York tribune., 1912-01-27
FINANCIAL MARKET
Local Banks Gain Sl3,OOO,0OU
on Weeks Currency
Movements.

Contrary TO the expectation OF pear
traders the stock market did not 90 10
nieces Yesterday as a consequence OF the
reduction in the dividend on the common
stock of the Chicago Milwaukee q 81
Paul Railway Company. While eHorls
wore made TO bring about a lower ieNei
ot rrices losses were confined, as RUE
IN fractions. even st. Paul, after an lnl-
t;al decline of little more than one
uoint. closing but five-eights under Hs
final figure in Thursdays operations
The ST. Paul directors are TO be COM
mended for their action in reducing the
..onmon dividend 10 , per cent basis.
The company, with its income from the
puoet Sound division of the road, barely
o.rped : per cent in the last year, and
nc tho outlook does not favor materlai
gain in earnings in the course OF 'he
ncxt few months the maintenance OF the
: ner cent rate would weaken the posi-
tim of the common stock AS conserVa-
tive investment proposition. Eventually
81 PeuI common will return TO a Z per
cent basis The company IN recent
wears has spent and still Is spenolns ah
enormous amount of money on It's prop
ertv In order to add 10 its earnings IN
tho future, all Of which will accrue 10
the benefit of the stockholders
General trading in stocks represented
uttle beyond the transactions of the pro-
fesslonal element. Commission houses
were not active factors in the dealings
while prominent interests confined their
operatfons to extending support when
support was needed. More net advances
than losses wero recorded at the close
although the Hill shares, Union Pacific
and United States Steel ended at small
declines Reading was strong teat-
,,re. also the Interborough-M h-MetropoItan
issues. the American Tobacco stocKs'
New York Central and various special
tics as, for instance the international
Psper securities New York Central was
helped by a report that negotiations
were under way for the acquisition ny
the New York Central Company OF the
outstanding stock of the Rome, Water
town & Ogdensburg Railroad. A propo-
sition Of this sort would merely be IN
line with the policy Of the Vanderbilt
company for a consolidation of the ROADS
in the so-called Vanderbilt system under
one corporate form American Tobacco
stock enjoyed net gain of 70 points
and the stock of the 2. Locillard Com
pany 91b points. The entire market was
strong in the late dealings.
According TO the known movement of
money in the current week the local
banks have gained upward Of Sl3OVOVO
net I'm cash holdings, owing TO large re-
ceipts of currency from the interior,
which have been offset to some extent
by excess payments by the banks to the
Sub-Treasury. The gain from out-of-
town points was heavier than in any
preceding week in the present year, and
as a matter of fact it was larger than
ever before reported in any week,
amounting 10 little more than SlL-
100000. and representing especially
heavy receipts from Chicago and the
Middle West Shipments Of currency
from this centre were made up chiefly
of national banknotcs sent to Washing
ton for redemption. Money rates were
unchanged. while sterling quotations
Uere strong under the influence Of n
good demand. scarcity Of bills and the
disparity between the price of money
here and abroad. Discounts in London
arc higher than at any other important
centre. and as a consequence the eX-
change market is moving in favor Of the
British capital with all indications
pointing to A flow of gold from New
York and Berlin and possibly from
Paris to the Bank OF England. although
the English bank is not in position
that demands imports of the metal.