The San Francisco call., 1899-09-24

increase of national bank circulation. It will
be observed that the total increase of circula-
tloh .G0E ScG0EEuths 70 the statement amounts TO
but SS5,s00 for the week Furious speculative
activity and excitement have made heavy deal
lnss on the STOCK hNchange all Week Inc
obvious necessity disclosed by last Saturday s
bank statement for a contraction of loans by
the banks prepared the professional stock oper-
ators TO take advantage OF the forced Hqulda-
tion Of speculative holdings of stocks which
had been bought on margin with borrowed
money. The professional operators were all
bears and took the market away from the
longs as quickly as the pressure of liquidation
manifested itself in any one spot. The course
Of prices indicated pretty clearly that the call
ing of loans was made with marked discrim-
nation against the industrial stocks. The mar
gin OF collateral loans in which the secur-
tiles figured was brOadeued as well s the rate
of interest being marked up In many cases
the loans were called outright only to be re-
placed after the collateral had been shifted
into more substantial securities The violent
fluctuations in Brooklyn Transit had an in
evitable effect other securities more or less
allied to it by common ownership of securities
The proportions OF the dealings in Brooklyn
Transit have, perhaps, never been equaled in
the history of any other stock IN the same
Der of shares Of this stock sold on the EX-
change foots up 10 q total OF almost four times
great the total share issue of the COM
pany. The fact Is beginning 70 emerge that
q contest IS between some of the most pow
erful financial interests IN me country Ior the me
and franchises of Greater New York. The
contest has been open and fierce for many
months in the gas business OF the city. and
belief in Wall street is that the same elements
are engaged In contending for the control of
the street railway corporations. Ihe eagernesS
of the bear element among professional opera
tors resulted in overextendng the short ac-
count. and the demand TO cover became rather
urgent. There was some relief from the
earlier anxiety over the money outlook as the
week progressed. based various causes. The
large contraction Of loans was sufficient 10 in
sure material decrease in deposit liabilities
by the bank and the outgo of money showed
a falling off, both 70 the interior and to the
Sub-Treasury. The purchase OF S0OO,OOO in gold
in the London market for shipment 10 New
V0rlr would NOnChed for by
any one in Wall street. had an influence on
Stock Exchange sentiment, as 1t was doubtless
intended it should. The downward course or
foreign exchange excites expectation of an
early export movement of gold though foreign
There Is still existing a short interest in
sterling exchange which makes good de-
coming forward more freely. Last September
the surplus reserve of the New York banks
contraction and Humiliation on the Stock Ex-
change set in with stfening Of the call loan
call loans had dropped back to below per
cent and surplus reserves had risen to about
added to its deposits with depository banks
the sum Of nearly Sl5,000Q0O In connection with
ernnent bond issue. The large excess of Gov
ernment expenditures over receipts was adding
banks are now losing weekly to the SUD
Treasury. During last September the receipts
from Europe at New York aeGoIdIng s 5o 10 TT the
Custom house report were Sni5S. .2A2. rms
month there have been no receipts OF gold and
none are likely before the end OF the month
Last September the Treasury not only onered
to anticipate October l interest on the per
cents of 1907 as It has done this year, but also
offered to anticipate the redemption OF over
sI4 900 900 OF Pacific currency Is Neither offer
was taken advantage Of on any large scale al
by holders OF bonds. National banks were IN
creasing their circulation last September on a
larger scale than this These differences in
the circumstances last year must be taken into
account in connection with the quick recupera-
ton of New York banks last September. The
loan contract last year between September and
ched arlV SIG (IO coo.
The bond market has moved generally IN
sympathy withs stocks, but has not been as
active nor changes as wide. United states Is
advanced Il but old As registered declined 4
and the 3s "a in the bid price.