The San Francisco call., 1897-12-25
COMMERCIAL WORLD.

bank statement with its further decrease of
over 81, 100000 in the surplus reserve had the
effect of checking the activity in the market
for the time being. In fact the market did
rot take on the same animation again during
the remainder of the day, even when the an
nouncement was made of the engagement for
shipment from England by tomorrow steam
er OF 10000 in gold.
The bank statement was about what was
expected. The heavy balances of over $780,
600 in to-days clearing house statement un-
doubtedly reflect operations in connection with
Mondays payment OF IS SOC, 600 account Of
the Union Pacific sale. The days shipment of
so!o, Whlie IL indicates certain relief avail
able in case of undue stringency in the local
money market, also indicates the belief that
the present hardness of money rates is likely
TO endure for considerable time without re-
lief 1t has come to be generally recognized
that large imports OF gold will be necessary
to settle our existing trade balance with Eu-
rope, as the expected import movement of
merchandise does not develop. But the pres
ent hardness of money here II was suDposed
would be of short duration and would thus de-
Ter the gold movement as long as high rates
continue TO prevail in London and Berlin.
There was expectation after to-days engage
ment was announced that there would be fur
lher gold importation next week. The stock
market has been characteristic Of the period
Immediately preceding the holidays Dealings
nave averaged less than 200. 600 shares a day
and the movement of prices has been sluggish
and marrow, except in special cases. This was
due in part TO the natural disposition to close
up accounts at the end of the year and partly
to the neglect of business in favor of prep
arations for the holidays. There is a natural
tendency lor prices 70 sag IN such a market,
but prices have yielded only slightly during
the week. They were partly sustained by the
strength OF individual stocks due to special
causes and partly by decline of the fears of
any violent stringenCy in the money market
before the first of the year. Statements from
the Treasury Department at Washington make
II evident that a quantity of currency skies
are being presented for redemption sufficient
to insure relief to the money market from the
effects of the Union Pacific payments into the
treasury Last week payment Cabout $500,
similar amount is due the Treasury next Mon
day. but the Secretary of the Treasury an
NON hat ~
amount on deposit in New York banks if the
Government bonds for security are forthcom-
ing. The Treasury Department estimates that
disbursements for redemption of the Pacific
bonds up to December q will amount to SIS
600 co., The payments heretofore made by the
UHIon racine syndicate TO the Government are
still on deposit in New York banks. 1t will
thus be seen that the money market is secured
against disturbance from the Union Pacific
operations before January !, after which tie
supply of money will be repenished by divi-
dend and interest disbursements. The accum-
ulations necessary for these disbursements is
still TO be reckOned with the period before New
Years. After that date the final payment of
IS. 900 by the Union Pacific committee is to
be made on January 8. On the other hand the
Government will dsburse its interest obliga-
tions and redeem the remainder of the Pacific
bonds 1t is estimated that the Government
will have credit balance, after the clearings
demption of the Pacific bonds and the pay
ments OF January interest of nearly $40 0O0,
600 which viii be for the time being on de-
post in New York banks. This balance will
be subject to withdrawal from the money mar
heI or TO the contingency of a possible con-
tinuing deficit in revenues The care with
which these large transactions have been ar
ranged TO offset one another is believed to
have assured the countrys money supply
against any violent and sudden fluctuations,
but the loan rate is expected to hold firm at or
above the present rate for several weeks. The
marked weakness of foreign exchange which
is now at as low point was reached dur
ing hte gold movement of last September, has
proved sufficient to bring gold. as shown by
to-days announcement of $500, 900 coming from
London. In view of the high money rate in
the Berlin and London markets this comes as
something of a surprise, though a heavy inn
port movement of gold later along was consid-
cred certain. In this connection il is to be
considered that gold received at San Francisco
since August l and now in transit from Aus
tralia amounts to $11, 175, 600.
This is in effect liquidation OF Australian:
indebtedness to England by the payments of
England's debt to us.
The bond market has been much more quiet
this week than for some time and prices are
little changed.
Government bonds have been weak. The new
fours coupon are off ls; do registered l; old
fours registered Il and the fives g.
Total sales of stocks to-day 2S3. 400 shares
including: Burlington %. .7S0 Manhattan a =
O65 Met. Street Railway u 1870, Missouri Pa
cihc 36S5 New Jersey Central 1910, Northern
Pacific 1870, do preferred 1860, Reading $500
Rock Island 9525. st. Paul II. 5S5, American To-
bacco 1887, Chicago Great Western 6775 Peo-
pies Gas 1870 Colorado F. and I. 331O Lead
$500, Sugar 36,520, Western Union ISL