New-York tribune., 1900-10-07
BONDS.
THE DAYS OPERATIONS IN STOCKS.

The stock market was firm until the publica-
ton Of the bank statement, a heavy decrease in
reserves causing a general selling movement
throughout the list. Fair buying noted on
the decline. and in several issues notably Penn
sylvauia. Baltimore and Ohio and Reading first
preferred. good support was offered. The bank
statement made an extremely unfavorable ex-
hibit. Cash holdings decreased $S,574, 100 and
surplus above legal requirements declined to
S6,24l,9OO, the lowest point of the year. Loans
decreased only S661 900. Total loans now stand
at $S16S10T00 as against $71O5S2 500 this
time year ago. but actual cash holdings are
$300000OO larger than IN 1899. It is quite evi-
dent from last weeks reduction in bank hold
ings that credit facilities at this centre do not
warrant an active bull movement in securities
If the loss in surplus this week equals last
weeks decline. next Saturdays statement will
show no reserve at all above legal requirements,
and, although such situation would not be
reason for a stock market panic, it would doubt
less afford bear traders an excellent opportunity
to hammer prices.
Active speculation In stocks last week pre-
vented a big decrease in loans. In order to
strengthen the surplus the banks may find II
necessary to make a sharp contraction in loans
this week at the expense of spectators who
have been operating in stocks on borrowed
money. The banks must either decrease loans
add to their cash balances in order to build
up their surplus above legal requirements, and
with the movement of money against this city
the chances are that the surplus will be pro-
tected by a reduction in liabilities. Sterling ex-
change rates are near the gold importing point
and in consequence 1t is thought that a pinch
in the money market will be averted by relief
in the shape of gold shipments from abroad
II should be borne in mind however that Eu-
rope will not take kindly to a gold movement
this way, while 1t will probably do everything
in its power to keep its metal at home. The
decline in exchange rates has been caused by
large supply of cotton bills. greatly in excess of
the demands of banks and bankers. and as 1t is
already difficult to secure advances against cot
ton shipments, the need of relief of some sort in
the money market is apparent The situation
suggests higher rates for money, and If cotton
receipts continue lower rates for exchange.
The bank statement did not appear until near
the close of business and the following reaction
in stock values did not have time to do any
serious damage to margins. In to-morrow's
trading the course of values will be watched
with interest. The possibility of a sharp decline
will doubtless cause active selling at the open
ing and as stocks have been bulls for a week
or more the chance for bear success will be eX-
cellent. Some we'll held securities may come on
the market but it is not likely that investors
will care to sell at ruling prices. Stocks are not
a sale on their merits. Real values will not be
injured by temporary money market troubles
The final losses in yesterdays market were gen
orally less than l per cent, the chief weakness
developing in the industrial issues
The usual weekly table of price changes for the
more active stocks follows