Show COUNTRY BANKS HOLD ON ONTO 10 TO CASI CAS CASH I Not in Reserve Cities to Full Extent Allowed INTEREST INTER T RATES RAT S HARDEN EXPECTED PLETHORIC I MONEY CONDITIONS NOT OBSERVABLE New York March 1 Securities mar markets markets markets last week were inert and were ad adJusting adjusting themselves to an attitude of ot waiting for the development of events to shape the future course of affairs This was true not only in New York Tork but In the great financial centers abroad At all these th ge points there was discernible the tendency toward accumulation of reserves in banking cen centers centers centers and in all cases the reason given for the accumulation was a shrinkage in trade and industrial activity leaving a lessened demand for money for ac active active tive Uve use in enterprises In the United States the effects of the accumulation of reserves are offset by b a number of causes The United States treasury partly induced by the current deficit in inthe inthe inthe the revenues has ha commenced to with withdraw dra draw from the tile national banks the de tie deposits deposits posits which were placed with them as asan asan asan an emergency measure during the finith cial crisis The national bank notes which were Issued in lri extraordinary vol volumes volumes volUmes umes at the same time are going into rapid retirement by deposit of lawful money wIth the treasury by the issuing IssuIng ing lag banks Interior Banks Hold to Cash These symptoms of a contraction in inthe inthe Inthe the needs of the toe circulation are accompanied accompanied by signs that interior banks are disposed to keep up their reserves to a high level and to from redeposit in III the central reserve banks to the ex extent extent extent tent allowed allowe by the national bank law The additional requirements of the New NewYork NewYork NewYork York trust companies in preparing for forthe forthe forthe the weekly statements of condition were another factor in taking up the slack in inthe inthe inthe the return flow of money to the reserve centers The consequence is that the plethoric money mane conditions which were expected to follow the subsidence of the panic have been slow to develop In Interest Interest Interest terest rates on time loans in New York Y rk have shown a hardening tendency dur during ing the week Money Lenders Discriminating Another element in this course of the money market was vas the discrimination exercised s c tr red Jot for loans Some of the industrial stocks and railroad securities sec of companies which have suffered from diminished earnings are looked at askance by mon money money ey 01 lenders and add to the difficulties of borrowers The shrinkage of profits and the diminution of earnings applicable ble bie to payment not only of dividends but of fixed charges has been a con conspicuous conspicuous s influence on special securities in the open market Corresponding im importance Importance Importance is Ie given to the plans for cur curtailment curtailment curtailment of expenses to meet the de tie decline delIne lIne dine in earnings The question of Or wage reductions was given special prom prominence Steel Business Better On the industrial side a good impression impression Impression sion was made bythe by the placing of orders for steel rails by the railroad compa companies rues nies and by the report that the rolling activity of the United States Steel cor corporation corporation had risen from the 28 per cent c nt capacity touched In the depths of the depression to 51 per cent of capacity The copper market showed improvement Railroad earnings showed ho no pro pronounced pronounced pronounced betterment and operations In general trade were reported to be on conservative lines Jines The sluggish in investment Investment Investment vestment demand for bonds was con conspicuous and offered little encourage encouragement encouragement encouragement ment for early success in the rhe placing of new capital issues which are relied upon to furnish resources for Important projects of extension under way |