The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-18
FINANCIAL NEWS
And COMMENT
Unchanged Underlying Firm
ness Shown by the Stock
Market.
CASH POURS INTO BANKS
Wall street Attention Directed
Exclusively to Coming
Political Events.
CASH POURS INTO BANKS

Nothing seemed to he changed In the
POSITION and tendency of the stock mar
ket Judging from the Indications afforded
by the closing session yesterday. Trading
was on "A moderately active scale with ir-
regular fluctuations in prices and irregular
changes showing at the close. The ex-
hbitions of aggressive strength were
again confined chiefly to special quarters.
but the more influential issues displayed
persistent nrmness and recessions under
such selling pressure as appeared were
slight There was no sign of weakness
I'm the general market. although absorb
tive capacity has been heavily taxed In the
last few days and the advance that has
taken place might have left the list IN a
condition Of somewhat impaired techni-
cal strength. There was no overnight
news which satisfied the most important
injuries or altered very much the iniiu-
ences which have helped to advance and
hold quoted values.
The weekly bank statement, published
after the close of business, furnished fur-
ther proof of the inordinate relaxation In
the money market resulting from the
normal tendencies of the season plus the
liquidation Of the past year which is still
continuing In various lines OF business.
In the actual statement loans increased
about S25.JOO,000, deposits rising about
s4S.j0o,0 900 and cash gaining 100000 coo.
1t IL usual at this time of the year for
activities In connection with new imam
cling and the operations of investors to re-
suit In loan expansion. The changes in
loans cash and deposits balanced very
accurately and the surplus reserve Of
the banks was raised sll. 100000 to about
$43.OOO.O0O, or twice last years surplus.
Such "A banking position OF course pro-
vdes one important explanation for the
strength of securities, although II is at the
same time "A partial clue to the resump-
ton of gold exports this week. with an
engagement of s2.O00,OOO for shipment to
France Foreign exchange reacted after
this transaction. and while gold was going
to Eurup. II was also being received here
from Canada. but 1t is not doubted In
banking circles that We will make "A large
aggregate export of gold this year APP
parently the Bank of France has deter
mined TO recruit its reserves after the sue
cessful manner Of reserve expansion by
the Imperial Bank of Germany In 1913,
and IL IL probable that this country will
have to provide the bulk of the gold re-
CURED by Paris. II can hardly be ques-
toned that the prospective workings Of
our new banking and currency system will
facilitate the outward movement of the
metal.
Tn. domestic money market OF the week
has been gagged by a q, per cent re-
situation conducSs to the processes
OF refinancing corporate note issues
which are going on and to the
absorption of such long term bonds
of high grade as may be offered The
prospects are that the coming sale OF New
York State bonds will bring "A large sub
scription at a satisfactory price. and the
effect should be helpful over the financial
markets generally. In Europe new imam
cling is being done on basis or very
high Yield and there is some uneasy ui-
certainty about the outcome OF the credit
and capital strain which persists at Paris
where huge quantity of new financing
remains to he accomplishe However, for
the present the London securities market
Is responding by rising prices To the cheap
en,ng Of money, which seems 10 warrant
a further reduction IN the Bank OF Eng
lands discount rate. The South African
railway strike was a disturbing element
IN the foreign week, but it Is hoped that
this trouble will not last long
Practically all the factors Oh which wall
street regard has been fixed are in the
political category. The arrangements TO
dissolve the New Haven railroad conihi-
nation and the voluntary readjustment OF
the Atlantic Coast Line organization
strengthened hopeful expectations that the
Administration at Washington would seek
20 limit severely the radicalism OF Con-
gress IN the field of further legislation
affecting business. AS the week ehdeu
financial attention was almost exclusively
directed toward the declaration OF policy
on the subject of trust legislation which
president Wilson may make in his ad-
dress to Congress In the coming week.
There have been limitations thatthe Pres
ident would in some way hint at Admins
tration favor for higher railroad freight
rates, but such hint would be onset 80
far as constructive effects were concerned,
nv AN expression of Presidential approval
for new trust laws which elaborated very
much the statute known as the Sherman
law. SO far as regards Congress itself
plenty of signs appear that the national
legislature is bent on the enactment of
radical measures.