The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-11-15
SATCRpAY. Nov. Ia,

To-day's statement Of averages of the Asso-
ciated Banks indicates the extent OF the I'M
locking OF money boarded prior to the cleo
ton. The banks have gained $l2,673.OOo in
lawful money during the week. two-thtrds Of 1t
in specie, and 1t is a fair assumption that
practically ali of the specie is gold. That the
banks are seeking to employ proftably the
money returned to their care Is shown by the
increase of nearly 49, 600 in the loans. The
increases in the two items mentioned have in
creased the deposits nearly SIG. 600. 900, ana
as O little less than $4,000. 900 OF the
increase in lawful money is required against
the larger deposits more than $500, 900 is
carried into surplus reserve. bringing that item
up to S23. 500. 900.
A similar return of money to circulation
Is taking place throughout the country,
and at the Same time tho Treasury gold bal
ance is being added to at the rate of $500, 600
or moro q day. These circumstances fore
shadow oven greater ease than now prevails
in tho money market, in which a radical change
has already taken place since the election.
Commercial borrowers no longer experience
dificulty in securing at reasonable rates the
accommodations to which their standing and
resources entitle them. The larger borrowers OF
time money in Wall street are declining offers
at s 2 cent. for four to six months, being salts
fed that in the near future they will secure
what they require at lower rates.
The decline in money rates here. while they
remain high abroad. particularly in London,
would ordinarily DO regarded as an un-
favorable development on account Of tho
effect upon the foreign exchange market.
The fact that merchants and import
ers can secure accommodation at q
p cent. naturally stimulates remittances,
and besides. the relatively higher rates abroad
prevent European capital from seeking tenn
porary employment here. These circumstance
are Offset. however, by tho large amount of
sterling bills that we're bought before the cleo
ton for speculation or protection in event
of the success of the reputation movement,
and also by the steadily increasing de-
mand for staple producta. particularly bread
stuffs, at advancing prices. Competent judges
of the foreign exchange market are Of the
opinion that less than half of the sterling
bills that were boarded before the election
have como upon the market. The amount
that has been sold has. however. been
sufficient to prevent any material or sustained
advance In foreign exchange. though 1t is
estimated that this country has bought between
$50. 000.e 600 and S25. 600, 900 of securities from
London since the popular verdict In favor of
good Government and honest money was rend-
cred ten days ago.
The market for securities continues to bear
out tho diagnosis ventured in this column inn
mediately after tho election, to the effect that
the wealth OF the United States and the conf
dence of Its people in their future. have made
the domestic market practically independent of
the European markets. The magnitude of the
bids fer tho city bonds is indubitable evidence
upon this point, and SO Is the record OF tho deal
ings in bonds on the Stock Exchange this week.
Over $50 different Issues have been dealt in,
as against 175 issues last week. and the
par value of the bonds dealt In III
SIS, 1906 900. or o million moro than last
week. The record Of the stock market 10 equal
ly Interesting. One hundred and hfty-seyen
issues have been dealt In. as against 143 last
week. but the total transactions show a little
falling OF. as speculation was checked during
the latter part of the week by the Spanish war
scare.
Wall street seems to regard the possibility of
complications between the United States and
Spain rs it did the probable outcome of the
election. The Street was confident that
Mr.. Mckinley would BIO elected, but
tho possibility that no might not be,
held speculation absolutely In check. An
equally strong conviction prevails now
that a quarrel with Spain is an exceedingly re-
mote possibility; but that possibility makes
some operators cautious and encourages traders
for short account 10 sell the market
with q degree Of confidence that is not
warranted by all the other conditions
affecting speculation. The possibility re-
ferred to was responsible for the selling
OF stocks on n moderate scale this morning in
the face of the extraordinary good showing by
the banks. Traders were reluctant to carry
stocks over Sunday because they were fearful
of the character of the dispatches regarding
international affairs that may be published to-
morrow and Monday morning.
The dealings this morning were not on a very
extensive scale, and the course of prices was
Irregular. Mono Of the net changes was i'm
portant. The majority OF the list closed
fractionally higher. The let changes for
the week show . good deal OF irregularity,
and again, q majority OF the changes favor