New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-02
STOCK MARKET REVIEW
Sharp Recovery in Prices Fol-
lows Early Sagging Tendency.

lows Larry SdYYlIlY icliutIlCy.
The action of the stock market yes
terday morning indicated at the be-
ginning that the day was destined TO
exhibit fur or depression. but The
usual thing happened just at the period
when the bears were making a vigor-
Gus drive: a reverse movement began
and prices bounded upward, and in
the afternoon recovery set in which
resulted i'm gains at the close ranging
from fractions TO more than points,
embracing practically the whole list.
1t was a holiday in London, Berlin
and Paris. so New York had full sway
and seemed to absorb all the stimulant
that the reports Of Improvement In the
Balkan situation might have distribu-
ted over the European stock markets
had they been open for business. The
fact that the European markets were
closed prevented any profit taking sales
coming over for foreign account, and
in that respect relieved possible pres
sure and allowed the swing OF the PEN
dulum to go higher that il might have
gone under normal conditions. How
substantial the betterment exhibited
Yesterday may prove to be will be de-
termined somewhat by the action os
prices to-day and in the near future.
The reported attitude of the powers
&c hot syhf ho Va
been expected. as 1t is doubtful wheth-
er the controlling heads will act hast
lily or unwisely in a matter of such a
delicate nature. In that sense alone,
the daily movements Of Austria and
Montenegro there Is a reserve feeling
of safety which will prevent demoran-
cation such as was experienced at the
outbreak Of the Balkan troubles last
year.
The weekly statement Of the Bank Of
England yesterday made a favorab Bile
showing in the light of the strained
abroad and the continued unsettled sit
uation on the Continent. Owing 10
Yesterday being Ascension Day holi-
day in Paris, the Bank of France
weekly statement was postponed until
to-day. An explanation of the recent
I local money situation was found in
the summary report of the country's
national banks received from Wash
ington yesterday. The heavy loan eX
pansion of over Sj3.OOO.OOO since the
previous report Of February 4, while
actual cash holdings were reduced over
So. 100000. indicates the need for con-
servatism in the matter of loans by
bankers.
Secretary McAdoo's plan for increas
ing the public deposits in national
! banks by S10,0O0.0OO, allowing wider
range of security deposits in the form
[ of state and municipal bonds, and ex-
acting a charge Of per cent interest
on funds deposited 10y the government,
was viewed through different eyes by
! Wall Street bankers. 1t is cOntended
/ by some that the price is too heavy
penalty to pay for the use OF govern
ment money except In periods of strln-
gency, while others expressed the opin-
ion that the government ought TO re-
! ceiVe compensation and that Il Is no
more than fair that per cent should
| be charged. The main point seemed
to be, however, that New York banks
will not want the money and that il
will go TO the weaker institutions
throughout the country, possibly to
some special banks and not be Of gen
eral value. 1t Is certain that any
makeshift action of this sort will not
take the place Of genuine currency
reform bill which will be broad enough
to cover the manifold requirements Of
the country's financial and commercial
development without weakening the
| secondary reserve, as will occur I'm any
extensive operation of Secretary Nc
| A0OOS Dlau