The times. [volume] (Washington [D.C.]) 1897-1901, 1900-04-09
STOCK MARKET GOSSIP.
Facts Regarding the Bank state
ucnt mt First Overlooked.

/
NEW YORK, April S.--Wall Street people
who were at first inclined to regard the
bank statement of yesterday as an unfa
vorable one from the fact that decrease
in reserves was caused by heavy increase
in loans came around to the saner view
last night that the showing is in no way
a bad one. 1t should be remember ed
that SIS, GOO, 900 was paid TO the Ne% YcIk
| Central during the week for the taking
! up of the new stock issued at par. Wall
| Street houses paid over this amount fo;
! their customers and when the new stock
is issued it viii be taken up by the cd
stockholders aud the cash returned to t. 8
! brokers, whose borrowings in this Ger
nection had much to do with the increase
! in the loans shown in the statement The
/ actual cash holdings of the banks in
! creased. as has been said, nearly 81 ,009,-
000. The increase in loans not to be attri-
buted 10 this cause shows very clearly
! that Spectators are gaining confidence
and smbarl,ing on the large plans that
have been held back heretofore b. the fear
OF tight money.
] The investment in stocks has not come
I % an end by any means, and the best au-
/ tho tiles believe that prices VIII reach
higher and higher levels during the com
| ing few months. Reactions are to be eX-
! peCted in every bull market, and people
who trade on small margins should be
careful in making new ventures after
rapid advances. II is not impossible that
reaction will come some time during
this week. though this is not by any meafs
! certain. Advantage should be takea of
declines to buy good securities
| street authority said yesterday: "a
consideration, not to be lost sight of, is
the scarcity of good investments EXCEPT
at prices almost prohibitive TO the present
/. buyer Government bonds and gilt-edged
/ securities are so firmly held, and at such
high figures. that new buyers. whether
for investment or speculative purposes,
are obliged 10 turn to the newer issaes.
Hence, the preferred stocks and Iow-pric
bonds of recognized railroads and some
of the industrials have been receiving in
creased attention Government bonds are
so high that owners are frequently tempted
to shift their holdings into securities that
yield larger returns, and the same a2rl es
in some degree to other high-c.ass in
vestments. Not a few shrewd capitalists
are parting with fancy issues and takirg
some of the cheaper investments having q
future.
There is still another element that is
sums that must come on the market for
investment during the next six or twelve
months. Increased dividends and activity
in business mean not only larger expendi-
lures by the public and the stimulus of
new enterprise, but also larger sums seek
ing profitable investment There is still
one more element to be considered and
that is the attitude of the big holders Of
stocks. For several months the market
hoe l..Tl
skirmishes of conflicting interests. Until
these were settled CO.. operation among the
big leaders was impossible. Recent events
have cleared the financial atmosphere of
some of these clouds and harmony once
more prevails. so that the heavy opera
tors are now free to follow their convic-
tions. These it is almost superfluous to
state are on the bull side and there is
good reason for believing that the mar
ket is now receiving strong inside sup
port, and will continue 10 receive it for
some time to come"
Call money, according to the Financial
Chronicle, during the week in New York
ranged from TO per cent averaging
about "a per cent. Banks and trust COM
panies loaned at 1-2 per cent as the min
imum, some of them, however, early in
the week obtaining 1 per cent. Time con-
tracts were in only moderate re-
quest, while the offerings were lib
eral and the quoted rates were 4
per cent for all periods from sixty
days 10 six months on good mixed stock
exchange collateral. There is little bet
ter supply OF commercial paper and the
demand is good, though not active; it is
confined TO a few city institutions and to
some out town banks. principally at
the East. Rates were 4 1-2 per cent for
sixty to ninety days endorsed bills re-
ceivable, 12d5 per cent for prime, and
51-2d6 per cent for good four TO six
months single names.