The age-herald., 1900-10-14
FIRM UNDERTONE
 TO STOCK MARKET The Bank Statement Sent Prices
 Considerably Higher. DEMAND FOR MONEY FACTOR Shipments to Interior Points Continue, But Other Conditions Offset the
 Loss-General Review of the
 Week is Favorable
DEMAND FOR MONEY FACTOR

New York, October 13.-The undertone of the stock market continued firm today and the bank statement was the signal for buying movement which carried prices up sharp making the closing firm at the top. Peoples Gas was the feature and con- tinued demand from the short interest carried it up to PA with relapse of only . slight fraction. The ease of call money yesterday had prepared the public for some modifying factor to the heavy drain of cash to the interior. That movement itself is not fully reflected in the bank statement, as the heavy shipments towards the end of the week counted for little in making up the daily averages Add to this the heavy loan contraction which served to bring down the reserve re- quirements s3,O9O.2O5, thus reducing the inroad upon the surplus to $1,777,975.
 The room traders were disposed to dis count at once a favorable bank statement for next week. as the 8, ,500, 900 in gold com ing from Europe will figure in the reserves next week. Some receipts of Klondke gold are expected next week and the pen sion bill payments by the sub-treasury are looked to for some relief The bullish traders also argued that the advance in
  be the hamburger of a falling of in the interior demand for currency but this view did not find countenance in banking circles
 Last Saturdays bank statement has left its influence upon the stock market through the week, and has brought home to the financial world only how more con- pletely the money resources and the de- mands upon it has been mscalcula ted. The events of the week, notably the abstention of the Bank of England governors from advancing the official discount rate, show that foreign money markets have yet failed to grasp entirely the excess of the money requirements in this country over the preliminary estimates last summer Possibly the expectation that the South African gold mines will soon resume supply to Europe Is a factor in this ap- parent confidence abroad, but it seems based rather on the assumption that the present conditions of cotton export are ex- temporary and will change with the move ment of the crop.
 The liquidation in the cotton market by beth foreign and domestic holders. follow ing the unexpectedly favorable monthly re- port by the government, gives some point to this assumption. New York banking au- thorities have shown some reluctance to press demands for gold remittance from abroad. Various explanations might be of fered for this reluctance. It is certain that the underwriters of the<Brtish eXchequer bond allotment were under obligation to remit gold in part payment The New York subscribers for the German imperial loan seem to have been under a similar obligation, although they drew on London for the gold instead of shipping it from New York. These subscribers evidently feel themselves under an implied obngation at least to further the purpose of England and Germany to conserve their gold SUD- ply.
 The abstract of reports of national banks of September 5, just completed by the comptroller of the currency, shows that loans on that date were S63, 247 4S9- greater than those on June %, which furnished clew to the banks in the interior to meet demands on them without drawing on New York, as was expected early in the session. Comparing the government revenues this year with last, the receipts thus far in the fiscal year are more than S5,000,000 in excess of those last year The increase in expendi- lures has increased about the same amount, but Is solely due to the operation of the refunding bonds and the call for redemp- tion of the $250,O00 of extended per cents. The presentation for refunding of old bonds has now fallen to nominal amount, and less than s3,000,000 of the extended 2 per cents. remain outstanding. It Is clear, therefore, that the taking up of the excess of government receipts over expeditures, which is nominally greater than last year, will make a heavy drain upon the money market unless it is checked.
 Bankers also look for larger additional demands for money after election on the theory that much business is held in abey- ance until that time. On account of these conditions the demand for stock during the week has been lethargic and speculation narrow. But no pressure of liquidation has been shown.
 Trading in bonds has been small and prices generally have moved narrowly. United States refunding 2s, the 3's and the old As declined 14 per cent. on call as con- pared with prices week ago.