The times. [volume] (Washington [D.C.]) 1897-1901, 1900-12-16

! when 1t would hardly have been consid-
. cred possible a week ago AS a climax
yesterday the bank statement showed a
condition of things altogether better than
| anyone had dared to hope fEr. Apparent
| ly 1t is time to give Up the idea of any
| important decline in prices this year. o.
| at least before Christmas. The recessions
will come as usual but they are likely
to be followed each time by higher level.
Buying was advised on the recessions by
some Of the best houses yesterday. Even
in the best of markets. however, caution
not to overload is to be advised II is al
ways possible that the wisest market pco-
pie are wrong in their predictions. and
moderate profits which are safe are much
TO lie preferred to the chance OF getting
rich quick when it is accompanied by The
somewhat better chance OF going bank
rupt. Conservatism in the present mar
ket is extremely likely to make rany big
fortunes, but there is no uncertainty
whatever that the public viii lose more
as a whole than it will make. 1t always
has done SO in the past.
The bank statement was undoubtedly a
surprise to nearly everyone in the street.
Some people knew what it would show on
Friday and bought stocks on it. The show
ing is an excellent one in ITSELF it is
superb when compared with what was
looked for. Instead of cut in the sur
plus reserve of several millions of dollars,
or the wiping out of the surplus entirely.
there was actually a gain in this item.
The immense cut in loans was the fea
ture on which the entire statement turned.
The figures were as follows:
Reserves increased. ACKNOWLEDGEMENTS. 1924, $50
Loans uecreiseu ia, oc-,JvJ
Specie decreased ....................... 5li9,lo0
Lcgals increased ACKNOWLEDGEMENTS. l. lI9, 200
Deposits decreased $40, 600
Circulation increased OBSERVATION-DISCLOSURES. 1000
Financial men explain the figures by
the theory that the trust companies and
big financial interests generally lent the
street all the money that the banks called
in and more. This accounts for the ease
OF money on Friday and yesterday. when
the expectation had been of sharp ad-
vance in call loan rates. 1t also indicates
again in very clear manner that the
big interests are working for higher
prices and doing everything in their pow
er to help the advance along. The money
conditions of the country at large are
better than ever before. The leaders of
the market, If they wish to do SO. will
have little trouble in keeping rates down
in New York until the Inevitable flow of
funds from the interior begins. This, with
the immense disbursement to be made in
January, and with the cutting of the war
taxes $40, o0o. 900 a year, to come later,
promises easier money conditions in New
York in 1901 than ever before. The i'm
portance Of these considerations can
hardly be overestimated. 1t has been the
fear of tight money alone that has made
careful people apprehensive Of some tenn
porary setback in the market when all
important intrinsic conditions are superb
The following table illustrates the i'm
rortance of the present bull movement.
The low prices of the past year are given |
in the more important securities, and The |
closing prices of Saturday a week ago
and of yesterday: