The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-05
FINANCIAL NEWS
AND COMMENT
Stocks Have q Stagnant Week
End SessiOn-Prices
Rather Firm.
CUT IN SURPLUS RESERVES
Foreign Exchange Position
Suggests Resumption Of
Gold Exports.
CUT IN SURPLUS RESERVES

A state OF stagnation. moro or less
familiar IN midsummer but decidedly TN
usual at .his time of the year, prevailed
In tho stock market yesterday. Trading
. fell to little more than $4,000 shares.
and an might be- imagined. the huctua-
ton OF prices was proportional to the
scaic OF business. Probably the only Gig
nliicancc OF tho session was that the
share list did net continue the reaction
which set In on Friday. and displayed IN
deed 4 rather firm tone. Standard shares
were generally fractional!y higher 1T the
close OF business than on Friday.
The markets abroad were stupid also,
and there was nothing to show at the
week end that changes were more I'M
fninent In the speculative conditions which
are taxing not only che courage but the
resources Of tho wall street community.
Tho weekly bank statement presumably
reflected chiefly the adjustments incl
dental to tn. turn OF the month and of
tho first quarter OF the year. An cxpan-
SION Of SEQ. 10000 In deposits accom-
panied loan increase Of s23,S00,o00,
but the statement was altogether out OF
balance, since cash decreased sG.300.O0O.
As q result Of these cha..srs the surplus
reserve was cut about si1.s00.0o0.
The facts of the local banking position
and Of tho banking situation generally,
as illustrated by last weeks report .: the
Comptroller If the Currency giving the
country's national bark return as of
March Last. provoke indeed some inter
est!ng questions.
Although there has boen q progressive
contraction OF business throughout the
country. there has been n progressive ex-
pansion ~ loans and q steady reduction
Of reserves. The national bank reserve
ratio fell last month below 81 per cent.
for the whole country. and thereby
reached again tina unsatisfactory area IN
which the ratio persisted for more than
Il year up 10 the Improvement effected
toward the close % 1913
1t is a fair conjecture that the circum-
stances of the money market could change
very readily TO rather excessive firInness
If there should be any sudden and wide
spread revival of business activity. and
the same is also true abroad.
Incidentally I, is worth noting that
foreign exchange has been rising here
against falling European discount. De-
uiand sterling sold at $685. yesterday,
out f.ll back 10 4.ScII At the clos. 4
sharp decline in sterling ut Paris inspired
calculations OF a resumption OF gold ex-
ports from this city to Franc" next week.
During the past weel; somewhat more
satisfactory advic'1 came from abroad ns
20 the financial outlook IN relation to poi
it,cs. The most gratifying tokens 81 i'm
provement came from Grea; Sritaln.
where Il seemed likely that the recent III
ster crisis would terminate In ono ul thoss
elective compromises for which British
statesmansh.p is famous.
AZ the same time ~ was observed tina.
the stock markets abroad failed to develop
liong tn. lines of the upward tendency
which some commentators Inscribed 70
them.
Markctvisc news OF domestic Interest
was without market effect In the last Few
lays except such rs was traceablo IN the
persistent hrluness OF quoted values re
:Suiting from the hopeful expectations ot
u decision :aNorabi. 10 the railroads IN
the Eastern rate case.
Tho financial district was pleased AZ
the preliminary success OF President VIII
son In his Congressional campaign Tor the
repeal ~ the free tolls clc usa Of the Fan
una Canal act, hut the stock Exchange
vas no more disposed to turn this into n
trading factor than IL vas Inclined Il
uaso operations on Mexican occurrences
The announcement on Friday morning y,
tse distr.ctiug Of tn. country for the pur-
loses of the Federal reserve act did see n
to have some connection with the selling
movement which followed later in the stock
market
The reserve hank organisation commit
Zee appeared to have served other ends
than those contemplated Dy the object,
IF last years currency legislation aud 'h'
Impression made On the local harl'ns
community was unpleasant. Nevertheless
the Inutt-r - chef Importance relating T.
lie nef- financial capitalization Is TIE
membership % the Federal Reserve Board
which the President e yet Ia appoint, ano
there Is not iikel; 10 he mitch borrowing
Of banking trouble IN advance ot that ap
pointment.
Trade Information was depressing NJ
To- s,,.,, ,-f
anywhere and the reports uf railroad earn
iugs would have engender"d extreme pes
s'ui!c,n had It I.o; been for the hop,
reared on the railroad rate case. The In
terstat Commerce Commissions dlrec-
.ion - close the inquiry ON April .; with
IN implication OF decision early mex
month Involved a somewhat longer post
po1elnent OF the ruling than Wal Stree
had been ANTICIPATING lately, but did NO
otherwise AFFECT tine prospect.
II is becoming (, question, however, Il
Wal, Street II not hanging altogethe
100 much expectation On the consequence
e eventual Judgment for the ra,lrosi'
Thich have asked sanction :or increased
charges. There is a very general con
v.ction In the speculative following OF thu
stock market that the railroads have
proved tAei- case DIl must win IN
verdict. Under the circumstances = Il
extraordinary that the stock nari;et doci
got proceed 20 discount this outlouK II
dsc!s,on for the roads IL going TO be .
very constructive fnctor
Tho winter wheat crop report Will M
pabllshed next Tuesday. and this plhye,
sonic part In the forward calculations q
financial opthnistS because II seenl4
h--dly likely that thc report can be any
-..lug else than extraordinarily good
rAe arrangements which New Sorl
c,ty IL making To- sell {65.o0o. 900 %
~ per cent. bonds on April Is ais,
entered somewhat ii.to the Wall Stree
rrcxonng OF til. last few days, becaus
{. Is believed thai the sale would he
,p'sndid success and might. as such sue
c"sstul gales have often proved. he III
i'npuse 90 general stock market better
,uHNt