New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-08
REVIEW AND DIGEST
Very Little Encouragement IN
Weeks developments.
SIGNS OF RESTRICTION
Some European Factors Favor
able, but Dulness in German
Industry Appears Near.

Inc events or last week ldllou W D.
much encouragement TO better INDUS
trial and stock market position. the
movements of prices ranged within
margin of depression on one side ana
pronounced optimism on the other, and
at no time during the five business
DAYS on the Stock Exchange did the
market cross the line in either dlrec-
ton sufficiently TO insure more IMAM
an ordinary course of professional
operations. The effect of crop damage
was apparent in the weeks tradlhs'
but not to the extent Of other days III
the week previous. Sentiment was
governed more by the Clearing House
bank statement of the Saturday before
than by most other factors.
The returns of the local banking IN
situations were particularly impressive
as they illustrated how easily an APP
parently strong banking position may
be changed TO one OF moderate
strength, or even weakness. The de-
crease Of cash holdings, amounting 10
S13. 1853 600. and an expansion or loans
amounting to $30000,o00, while sur
Mus reserves were reduced 10 about
S5.OOOOOO above the reserve require
ment, displayed a position attended
with some apprehension, in view OF the
autumn requirements which are just
beginning. 1t is not without precedent
for an abrupt change TO occur in bank
items prior to and in the first part VI
September, but the present year is UNI
usual in view Of the disbursement or
funds by the Treasury TO afford Keller
before the actual demand has been
created.
Distributing S5O.OO0.OOO throughout
the country when the banks did not
appear to be pressed for funds has
produced an unnatural flush over the
country's financial appearance, which
Is being mistaken for a real color OF
Improvement and has had a tendency
to stimulate an expansion Of commerce
which may be felt adversely later on.
Such a view is warranted by the re-
turn of the national banks under the
call Of August 8, which re-
yealed a rather excessive display or
loans. New York was the only one OF
the three reserve cities 10 show re-
serve in excess Of the legal require
ments.
There was little influence exhibited
as a result of the situation in Mexico
in Wall Street during the week. al
though il cannot be said that the re-
suits Of negotiations toward a peace
full arrangement OF the affair by Presi-
dent Wilson have been very success
full. The matter as il stands now is
under restraint, and until some decis-
i've action has been taken by the
Huerta regime uncertainty will con-
tinue, and whatever effect the problem
may have in store must be awaited.
The banking and currency measure
continues to be passing through a dis
turbed period so far as harmony Of
as well as banking opin-
ion on the question is concerned. From
the reports sent out from Washington
il now seems there is good reason 70
look for some notifications OF the bill
before it can be passed through Con-
gress. One Of the favorable develop
ments Of the week was the most salts
factory outcome Of the offering by
Union Pacific Of the SoSOOO,WO OF
Southern Pacific certificates. The re-
port that about 80 per cent Of these
certificates had been subscribed for by
Union Pacific stockholders reflected a
better tone in sentiment among in
vestors, and this did much TO improve
the action Of the stock market during
the closing days OF the week.
Factors derived from the European
developments in some ways are more
favorable than formerly. From re-
ports received there appears 10 be less
apprehension than previously in the
money market, but in the German in
dustrial lines there are few signs OF
q movement toward a period Of de-
preston. If these signs prove 70 be
correct in their final outcome all coun-
tries will feel the effect, as Europe's
influence in the worlds markets will be
considerable if the people there are
forced 10 sell their manufactures at
greatly reduced prices. This will be
especially true as regards the United
States when the revised tariff shall be-
come operative. The most conspicuous
country which is being affected by an
economic reaction at present is Ger
many.
The Industrial and economic situation
in Germany, while not such as to excite
serious apprehension, is attended with
indications Of depression recently de-
veloped. 1t is generally understood in
Germany that the receipts of German
railways are a barometer of conditions,
and during the first six months Of this
year they showed an increase over the
same period Of 1912 Of > per cent. while
the normal advance in recent years has
been about s per cent. The June re-
ceipts, compared with the May return,
exhibited gain slightly in excess Of 2
per cent. Business failures, according
to the "Frankfurter Zeitung," during
the first half of this year totalled 5.270.
or 626 more than during the first six