Omaha daily bee., 1920-12-12
FINANCIAL
Ebe Neru uork Gimes.
BY ALEXANDER DANA MOVES.

by ALEAANDEKD DANA MY ES.
Chicago Tribune-Omafsa Bee Lensed Wire.
New York, Dec. 1.-THE re-
newed weakness displayed by the
stock market today was partly, but
by no means wholly, explained by
the weekend bank statements. In
the preceding week a deficit at the
clearing house banks had been
changed to a substantial surplus,
through increase in members cred
its at the New York reserve bank,
while as consequence that insti-
tution's percentage of cash to liza
bilities simultaneously fell from
40B to 37zs. Last week the private
baiks reduced their reserve credits
at the federal bank. which was en-
abled by such curtailment in deposit
liabilities to raise its reserve per-
centage from 37Zs to 39B.
Loans OF the associated banks
were practically unchanged, but
their deposits increased S43,600,OO0
and the $5,o00,000 reduction in re-
serve credits cut down the surplus
fro mthe previous Saturdays
$2l,98l, 900 to $l1,247,000. The re-
serve bank gained $l2,147,0O0 cash,
mostly imported gold; it reduced re-
discounts $27,430,000 and outstand-
ing note circulation $9,S00.000.
Low Mark on Loans.
Its loans are now at the smallest total
tto ai n q
smallest since September, This srengthen-
ing of position is timely. in view of the
large demands which will fall on the re-
serve bank during next weeks heavy gov
eminent financing and the subsequent
year-end settlements It's reserve ratio IS
still considerably below that reported
week ago by any other reserve oank, nut
centage, for the first time In more han
Il months. is running close to that OF
year ago.
terrupted during the entire two-hour trad
Ing Transactions were not unusually
large. but declines in a long list of in.
points and the railway stocks moved sim
ilarly Union Pacific, Northern Pacific.
and Reading declined 2M @3% points, ana
the owes tas fgures Of to-
days closing prices with those of weekl
before, show that the last week has been
marked as whole by heavier declines
vember money stringency.
Loss in Stocks.
In many well-known industrial stocks
tke weeks net loss has run from to IL
points. with a 16-point decline in Mexican
Petroleum. Such railway stocks as Union
Pacific Reading, Chicago g. Northwestern
Nv to 8 points, and are selling 10 to 20
points below the high prices reached in
the short lived advance of the day after
election. Even In tie bond market the
weeks results embody a fairly general de-
cline of l to 4 per cent. A movement of
such scope and so continuous is not merely
a consequence of professional selling" or
of money stringency due to approaching
settlements; it would seem to en-
body the financial markets Judgment as
to the probable Duration and Intensity of
the general trade reaction. AS to this
trade position, however, and the stock
markets relation to 1t. perhaps we shall
see more, clearly after December 81.
The foreign exchange market ended TIE
week with quiet day. Except for
France. Italy and Greece, the rates on
Europe were not greatly changed from
those Of a week ago. 1t has been a mat
ter Of very considerable interest that the
foreign exchange. which earlier in the
autumn was the most sensitive of all mar
kets to the pinch In credit, should have
to comparative steadiness since
the middle of November.