The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-11-06
FINANCE AND TRADE.
The Features of the Money and Stock

Markets.
NEW YORK, Nov. 4.-s!nce thu sur
plus reserves of the New York banks
fell to about quarter Of million dol.
lars in mld-september the professional
traders in stocks have looked for a de-
felt in the required cash reserves of the
banks almost every week, The wlpIng
out Of the surplus shown to-day was,
therefore, not surprise. The weeks
events made the stock market pecu-
llarly vulnerable in spots and the
slump in prices OF few stocks gave an
appearance OF Generalization to the
market. Leather especially. which
touched 40 at the opening and was
above 80 when the bank statemen; APP
peared, slumped suddenly to %, the
breaks between transactions reaching
as high as ? points. Marginal accounts
in this speciality were wiped out right
and left. and then the price was bid
up again 10 SO, at which is closed. SUI
gar and Brooklyn Transit were also
losers to the extent of over 9 points
A number OF other prominent indus
trials lost between and points, but
the general list reacted only fraction.
There were some violent recoverIes
from the low level, and the closing was
feverIsh and greatly excited at net
losses all through the list.
The speculative excitement was in
creased by the fact that the bank
statement was withheld until ten min
utes before the close Of the trading.
Efforts to close accounts in the short
time remaining made the market rurI-
ously active. The loss in cash shown
BY the statement Is somewhat greater
than was expected. which is doubtless
brought over from last weeks condl-
ton by the average system Of computa-
lions. The trivial contraction In loans
of less than n quarter of million dol
lars can only be explained on the as
sumption that the wholesale calling OF
loans by the banks early In the week
was offset by subsequent very liberal
extension OF credits. The growing ease
In the money market goes to coaNrm
this view. Such extension o! credits
must be based on a faith Of the bankers
that the current drain on their cash re-
sources is soon to be relaxed. Tho up
ward tendency Of New York exchange
at all Interior points during the past
week indicates the ground OF this faith,
The weekly bank statement Of the
New York clearing house institutions
had not shown denclt since 1923 For
six weeks past however, the surplus
has been near the vanishing point, and
at lenst half, and sometimes more, Of
the Individual members OF the clearing
house have been below the legal reserve
limit. They have not sought to build
up surplus in that time, but have APP
pnrently been content to discriminate
in the calling Of loans against collateral
which did not plaes' them, and, with
their security thus improved, to keep
their finds lonncd W 10 the limit OF
the legal allowance The average cash
holdings now fall Of the legal require
ment by $SSs.25O The amount Of loan
contraction necessary 10 bring the pro-
portion Of reserve back to the legal re-
auIrcmcnt would, therefore, be sl.S5S,.
400.
The unsoIvcd question which most
interests Wall stree, IL whether the re.
nux Of funds which Is usual after the
crop movement is to occur this year
Compared with last year, there Is to be
considered the enormous expansion in
interior business ns reflected IN bank
clenrings. the lack Of relief from gold
Imports this year and the absorption Of
funds by the United states treasury In
the taking up of the surplus revenues
as against constant supply to- the
money market last year In the dis-
burscmcnt Of the governments deficit
Business In bonds has been on large
scale, especially In some lower grads
speculative issues which have been
sharply advanced. United States 20.