The Saint Paul globe., 1900-12-17
BEAR SENTIMENT STOPS
STRENGTH IN THE MARKET STOPS
THE AGGRESSIVE ATTACKS
RECENTLY MADE
BANK STATEMENT SURPRISE
What the Financfer Says About the
Showing That Has Been Made
Surplus Evenly Di-
gided.

CHICAGO, Dec. ia New York
special to the Chronicle says:
Professional spectators taking pessi-
mfstic views of the business situation,
working to create scares and upset the
security markets eQpanimity have been
badly punished Such traders became
very bearish a fortnight ago over what
| they declared was the certain prospect
| of money market Stringency, and at the
beginning Of this week they We're not
only of positive opinion, but united in
! aggressive attacks upon quotations An
/ extended short interest did exist through
! out the market, and it materially in
creased up to a couple of days ago-it
| being the popular professional estimate
that surplus reserves would be found ex-
/ hausted with the issuance Of today,s
clearing bank statement
! In some parts of the market concen-
| trated adverse efforts resulted in rather
substantial declines, but the stock list
as whole showed suggestive sturdiness,
most of the standard stocks yielding not
at all even when vigorous raids weIe es-
pecially made upon them 1t was not,
! however until Friday that more than
negative strength showed; then actual
| bUoyancy developed suddenly, and up to
/ the close of business for the week there
was continuing Improvement attendant
upon extraordinary activity. The exhibit
! even to the enthusiasm reflected in the
record-breaking market that closely fol-
lowed the election.
/ When the weekly bank statement ap-
peared it proved to be very different from
any of the sensational forecasts. Instead
of a reverse shrinkage of from 81 031, coo
to $10,000,600 there was shown an actual
increase of some hundreds of thousands
of dollars This surprise was denoune ed
as wicked manipulation, but the denun-
citation could command scant sympathy
so cocksure and so violent sad they been
in their antagonism of every stockholding
interest. Some had even been talking
panic, insisting thafJmoney rates follow
ing this bank statement must of sud-
den go rushing up to a point where
wholesale security liquidation would be
enforced.
FEATURES OF THE BANK STATE
MENT
The Financier says: Through the famil-
lar operation of ia heavy contraction in
loans which reduced deposit liabilities,
and thus lessenedoeash reserve require
ments, the New York clearinghouse
banks last week neutralized the effect
of a heavy drain of funds and even sue
ceeded in adding slightly to their sur
plus cash. This showing was unexpected,
and instead of an 9unfavorable statement
the banks made a particularly strong ex-
hibit.
The chief feature is the S13, ,6S2. 500 de-
crease in loans, with one or two excep-
tons the heaviest of the year 1t is
known that several financial institutions
have called in large special loans of late,
and the approach of the January dividend
period always brings about withdrawal
of funds from the market in anticipation
of that event. Tt, was not anticipated,
however, that a Iiquida ton so marked
would be encountered in a six-day period.
The cash changes are about as figured
early in the week. The banks lost heav-
lily to the treasury and calls from the
interior were also large, but, on the other
hand, money is beginning to flow in this
direction again and the heavy losses
which have been noted from week TO
week give promise. of being made up
by current receipts from the same
sources
SURPLUS UNEVENLY DISTRIBUTED.
The present excess surplus stands at
$6,325,375 This of itself, is larger than at
the end of ten previous weeks, scattered
over the current year. AS q matter of
fact, however, the excess is very un-
evenly distributed, and one bank holds in
its vaults more than 60 per cent of the
whole amount This means that the re-
naming institutions are not in as strong
a position, from the reserve standpoint,
as at the close of the last previous week.
Circulation Is expanding, atter- several
weeks decrease, and rose $116,100 for the
six days ending Saturday. Despite an
ticipations of an unfavorable statement,
money has not shown more than the
usual degree of firmness, and unless signs
usually looked upon as accurate are
found to be misleading, only unimportant
changes will be encountered. The ma
tional banks are awaiting the call of the
comptroller of the currency for state
ments Once these are made the present
strain will be relieved in part.