The sun., 1913-11-02
FINANCIAL NEWS
AND COMMENT
Trading in Stocks Falls to a
Very Low Total, With tho
Market Firm.
BANKS REPORT A DEFICIT
Heavy Cash Loss Explains the
sharp Rise in Call Money.
Features Of the Week.

or frmncSS yesterday, altnouEn tnere
werc some weak features outside the or
dinarly active issues Closing prices
showed irregular changes, with pre-
pondcrancc OF ctiunal advances. The
striking feature of the market was the
curtailmeut of trading. total transactions
for the two hours being almost as low as
this years previous record day Of dul-
ness in july last which was the most
stagnaut half session since May, 1905.
obviously such "A market has acquired n
good deal of immunity TO bad news and
adverse arguments. even though II seems
10 anticipate nothing constructive in the
prospect
The bank statement established a rec
ord for the year in disclosing deficit IN
actual reserves amounting to sll,,05o.
The exhibit attracted much attention be-
cause of tho peculiar course OF call money
during the week. and the statement threw
some light on the abrupt rise In lending
rates. although the Interpretation of the
figures was not obvious. Loans in the
actual showing increased S2iooooo".
with an accompanying increase of about
Sis.70O,O00 in deposits. The gain IN de-
po.i,s raised reserve requirements mate
rally. and at the same time there WAS a
loss Of s733o.00o cash. As a result the
but this consequence cannot be regarded
seriously as denoting the real bank posi-
tion.
The loan increase was clearly attribu
table to the arrangements for corporation
disbursements AZ the beginning OF the
month. complicated somewhat by new
financing which has been under arrange
ment, but il was the loss OF 'ash wh''h
accounted for the recent call money
kat a. forecasts
changes had pointed 10 any such reduc-
ton in reserve holdings. Heavy pay
ments into the Sub Treasury for customs
dues seem to explain the cash loss, ana
II the lower tariff stimulus 10 imports Is
working to the disadvantage Of the banks
the Government may have To enlarge its
bank balances.
A gratifying feature "f the week :
stock market was its increasing dullh'ss
despite some reaction IN prices. Deal
inCs contracted with values ana because
very few developments bearing ON the
financial and business prospect were
optimistic in their import an intrlhsI'aIlN
strong position "f the shar" Ilst was Sue
res,cd The trading was continuously
professional t. Il high degree and heaN-
ness was owing To- la"k oi buyers more
than To- the Application OF pressure IL
might lac u reasonably safe CONJECTURE
that around tn" current level Of du"'a
tinns the thought Of financial interests
tuniti.s of the mark.t than with IN" bu!
ing possibilities which II may present
from time to time as n,arketwis" factors
induce weakness. particularly II ipuha
tion j. forced to any extent ny the IN
rrcasiug recession Of general business
That funds ar" available" i"r investment
and have tendency :" """k einrl"H ihtil'
IL cNiuccd by the persistent absorption
uf new socuritf offerings IN moderate
amounts. The average Level "t "uts'a'lu
ing bonds attcsted by hlgh grade iall-
road issues. declined last month and is
now very little above tn" low average
of June. hut october gay. a satisfactory y
account Of itself in - respectable t'tIl
Of successful promotions of new bonds
and notes Moreover tn" basis "t sales
to-day is not as costly :" BORROWERS as
IL was four ur uVr months ago
review of til, weeks Happenings AMI
considerations shows h'w little there was
Of favorable uatur" from III" WAL
street standpoint. and accordingly no"
oo,npara,ivrly unresponSir" stocks were
to depressing influences Mexican anairS
seemed obviously wors. IN their tnroa'
of ,ompellng the tinted States To inter
yene not only because the situation
failed to improve. iuut hccausc Europe
was urging action AT Washington Ih'
whole budget of domestic political news
was unsettlinE, The eNaSp"ra'i1e 'ruui
ties of the income tax law began u
make themselves felt in connection with
the November interest disbursements
and were undoubtedly responsible to som'
extent for the rather violent tehl"hihe
,f call money in Wall Street. The un-
mistakable symptoms Of increasing IN
dustrial recession were natura!lS as
sociated with the operations or the ne"
tariff law and the process of adjusting
Industry to the revised basis OF customs
duties
Mr.. Bryans authoritative announce
Ia;
dispelled any notion that the Admlnlstra
ton was disposed TO omit antitrust iee's
lation from the programme Tor the resu
lar session of Congress out OF regard Io'
the sufficient disturbances from whici
corporate enterprise is already suiftTihg
T'h, Senate banking committees line o
work on the currency bin denoted the
probable delay of legislation on this al
important subject and implied also th'
likelihood OF "A bitter struggle between TN
Administrations 18th radical support seek
ing to make political concepts OF cur
rency reform prevail and the intellgen
public opinion OF the country engaged II
behalf OF sounder financial theories o
change.
Abroad some signs pointed TO real i'm
provement in money conditions although
scepticsm was manifested regarding TIN
justification for the Bank of Germany
reduction Of its discount rate from pc
cent. TO -. per cent All the foreigl
security markets, including Berlin, Wer'
weak. and on the engagement Of $1,000.
OOo gold in London for export to New
York ntimations were promptly Eivei
that the Bank of England would not taxi
kindly 10 the substitution of New Yorl
for Berlin as grabber at the l.ondol
markets gold supplies. However foreigI
hints were conveyed that If success at
tended tn" forthcoming French Govern
ment loans At Paris the circumstauc
could be regarded as proving the essenta
betterment Of the worlds monetary stua
ton. II should be noted, though, tina
European expressions OF dislike for ou
own prospects We're openly given On aC
count OF foreign financial distrust evoke
both by Washington policies in eXtcrna
affairs and by the persistent projection q
radical schemes for expanding III" pOlit
cal element In American business enter
prise,
The weekly reviews by the commercia
agencies admitted recession in indtlstr,
but reported fairly well sustained $uel
camille activity. The Country's ban
'lcarlugs for the week decreased abOl
~ per cent. in comparison with the con
responding week last year and in the lgl
Of the continuous record of shrinking a.,
changes II cannot hc doubted that trad
ta "a tb., 1, Il