The herald., 1898-06-26
Conditions as Shown by Transactions
on Wall Street

NEW YORK, June 25.-The Financier
says: With a surplus reserve exceeding
$G2, 200 900 and with deposits increasing
three times as rapidly as loans, 1t cannot
be said that the New York money market
is in position to favor the moderate ad-
vance which was looked for after definite
arrangements had been made for the ne"
government loan. The banks, according 10
the statement Saturday, gained $4756, 300 in
cash, while their loans expanded only $2,-
262 600. The increase In deposits or $6,o1, ,4o0
in view of these two changes, Is about nor
NAL. AS payments of small SUBSCRIPTIONS
of bonds are consummated the domestic
exchange situation may be expected to
show material advances. Banks at i'm
portant middle and western centers in their
correspondence have already reported that
the loan subscriptions seem to be creating
a scarcity of New York exchange, and rates
are going higher in consequence. The pol
Icy of the treasury IN collecting as iast as
possible remittances for cash subscriptions
is reflected in smaller debtor balances at
the sub-treasury and the New York clear
ing house banks, but the amounts gathered
into the treasury are not yet large enough
to offset extraordinary expenses due to war
expenses. The result is that the banks are
gaining. not only from the interior move
ment, but from the treasury as well. This
accounts in large part for the continued
accumulation Of idle capital at this center.
1t Is not proba BILE, however, that this will
continue much longer. AS the date for the
closing of the loan approaches, the banks
of their excess reserves, but indications
point to a merely temporary disturbance
of small consequence in the situation. The
July dividend payments, aggregating be-
tween eighty and one hundred millions in
this city, doubtless have caused some of
the changes for the week, but these will be
reflected to greater extent during the next
ten days. The low rates prevailing in the
money markets are tempting mercantile
borrowers to supply their needs. and
great deal of the expansion in loans can be
traced to this source.
The regrettable loss of American soldiers
in Cuba had sentimentaly depressing in
fiuence a the opening of the stock market
today. Prices continued sluggish. but with
out real weakness, during the first hour
The question of differentials to the Cana
dian Pacific was said to still block settle
ment of the rate war, and this contributed
to the heavinesS in Northern Pacific. Va
rious industrials, including Spirits and To-
bacco. received effective support, thus
checking the earlier easness in the gen.
eral railway list and ranging trades on the
long side. The Changers, however failed
to quite reach last nights closing. The
general list closed firm in anticipation of a
successful culmination soon of the land
operations at Santiago. The expected sue
cess of our army of invasion, coupled with
the continued ease of monetary conditions,
the growing foreign trade balance In our
favor and the expected heavy investment
demand for securities, owing to the July
dividend and interest payments, have rem
dered vigorous efforts by the bears to Gre
ate liquidation futile.
The bond market gave striking evidence
of the plethora of money seeking invest
ment. Prices of the gilt-edged investments
chases occurred of the reorganization is
sues which promise fair return on capital
invested 80.
In government bonds, gains occurred of
e IN the old fours, registered, and " each
in the new fours. Prices were otherwise
unchanged.