The age-herald., 1898-09-11
Tn Wall Street.


 ket opened higher today under the impetus of better prices for Americans in London. The London advance was apparently man. ipulated from this side, for the rise here was met by heavy offerings in continuation Of the liquidation of the last few days, forced by the calling of loans. The extent of this liquidation is reflected in the con- traction of s677S,7OO in loans shown by the weekly statement of the clearing house banks. Northern Pacific preferred and New York Central showed the largest gains in the railroad list, the latter on short covering. The advance in Central was lost, but Northern Pacific preferred held per sistently firm in the reaction after the opening.
 The reaction at the opening invited some buying, especially in St. Paul, which ra.- lied nearly a point the traffic statement for the first week in September. showing an increase over last years unprecedented ly high level of $66,272, The industria.s came more into notice in the second hour, especially tobacco, which showed violent recovery from yesterdays weakness, ris- ing an extreme points on forced covering of shorts. The news which caused the ad- vance was not forthcoming, but presuma- bly, had to do with the plug tobacco agree ment, the alleged failure of which caused
 
 and wire and Hawaiian commercial were also conspicuously strong
 The continued shrinkage of cash re- serves of New York banks has been the prevailing factor in the stock market dur ing the week. The large demands of the treasury on New York banks for cash in payment of subscriptions reflected Tn the heavy decreases in all items of the bank statement. The large decrease of SIS 200 in the actual cash balance is more than account cd for by the diversion of cash from the banks to the subtreasury on bond sub scrptions. There has been besides a net movement to the inferior during the week The receipts of gold from Europe have not been sufficient during the week to make up the discrepancy. The drain on cash re- serves has necessitated a contraction in loans of s6. ITS, roo. bringing the decrease in deposits to $20 4S7 700, resulting in a decrease in reserve. requirements of $5,122,025. There is nevertheless shrinkage in the surplus reserve of S914,275, cutting down last weeks surplus more than half. It can hardly be said that there is any difficulty in obtaining money for business purposes pr any uneasiness regarding the future of the money market except in purely specu- ative circles Notwithstanding the small ness of the surplus net deposits and total loans are unprecedented and an extra ordinarily large proportion of the loans are secured by collateral. The measures prom lsed by the treasury in anticipating interest on the per cents. and the redemption of the currency 6s will release about S20,O0O,- 900 to the money market. The more rapid distribution of the new bonds also makes them available for circulation and as se- curity for government deposits. The pro- portion of the bonds already distributed, which are on deposit in Washington for this purpose is surprisingly small and the fact suggests that bankers are little inclined to pay the exporting premium on the bonds to save the tension of the money market which brings higher rates in money.
 The condition of the money market has restricted actions in bonds as well as stocks and prices are generally lower United States 2s, the 5s and the old As registered have advanced F, the new 4s as and the Ss, when issued IS per cent. in the bid price,