The times., 1901-05-13


situation The shock We'll Met.
NEW YORR. May 12-Yesterdays $
bank statement was not as favorable as
had been anticipated by the street, but Is,
nevertheless. better than should have been
expected by those who knew how great
" the loans granted by the banks had
been enlarged. The absolute loss Of cash
is 81 1850 whereas nearly twice that
sum had been figured out on the previ-
Gus day as the probable decrease. The
great increase of S7.266,500 in the out
standing loans Of the banks tended to
corresponding increase in deposits. which
was. of course. cut down by the eXtrac-
tion Of gold from the banks. The net re
suit Of all this is that the surplus re-
serve Of the banks has been cut down TO
SS.l27. .475. which is a fairly respectable
balance for the banks to be able to re-
port for the day after the financial COM
munity had undergone such an uncom-
Portable shaking up as that Of Thursday.
The real condition of the New York
banks at the commencement Of business
tomorrow morning viii be sveTy much
stronger than that shown in the state
mcnt. Every item comprised in detailing
the position of the banks must develop i'm
provoment The loans viii have been de-
creased through the enormous liquidation
which took place IN speculative accounts,
as houses that had borrowed funds on
which to carry stocks necessarily paid
those loans when the collateral given
therefor had been sold-and it may be re-
marked. sold frequently under compul-
sion by the banks which had made the
loans The next most important change
Will be in the deposits, which have been
cut down enormously not only by the pay
ments made upon loans, but also by the
heavy sums that have been paid in the
settlement of the vast losses made by
heavy sDeculators. one of whom was re-
ported to have given checks for Oo1,@0-
on account Of losses. Deposits have also
been lessened by the purchases OF those
good souls who buy stocks in panics anc
nav for them out Of balances which they
had in banks or in old stockings. The de-
crease in the two items named VIII
strengthen The technical status of the
banks. while the real amount Of cash rep
resented by specie and legal tenders will
be increased to a remarkable extent by
the currency which has been shipped TO
New York from every financial centre for
the pavment of losses, or for stocks
bought by the remitter. 1t was reported
that S2J 900 had been sent from Chlca-
go alone. and though the amount was
probably a gross eXaggeration, yet there
can be no doubt that the Western specu-
lators were obliged to chip in heavy
sum Of spot cash Next Saturdays state
uent VIII be marvelously favorable.
Henry Clews, in commenting on the
stock market situation, says:
THE long-expected reaction in Wall (
Street arrived. It came. too, as usual, at
a time and In manner least calculated /
upon. A corner in Northern Pacific the
like Of which has never been seen, was
the test which developed the breaking
point An prolonged movements in the
stock market are generally checked by
some incident that may have no direct
bearing. yet is sufficient to disturb the
balance Of power and compel a readjust-
ment of speculative forces. These ad-
vices, while admitting the unprecedented
influences supporting a bull market, re-
peatedly contained warnings Of what was
surely coming at no distant date. The
shock has come, and If has been well met
That the market could stand loss of
twenty 10 sixty points in the short space
of two hours is astonishing testimony of
its inherent strength.
Scarcely q sign OF weakness appeared !
in responsible quarters, and losses were !
faced in a fashion that was surprising.
IN previous panics of smaller dimensions /
panied such a break but nothing OF this I
sort was heard on Thursday when the (
cyclone was at its height. What the re [
suit OF this crash viii be- il is difficult to /
forecast. II is quite likely to afford a /
very effective check TO crazy bull spacula- +
tion. Prices were too high. and a more 1
moderate reaction would have been high |
ly beneficial AS il is il seems irnprob- /
able that the bull leaders viii be able TO
carry their campaign TO the extremes ]
that appeared easily attainable a week
ago. The corner in Northern Pacific
proves that friction exists between some /
OF the big financial nagnates, and that I
the harmony theory upon which such
eNtraVagant hopes We're based has been (
worked to its full value. It is now quite
evident that prices VIII receive strong
support until a good recovery has taken /
place IN the market. Conditions. however.
are changed from week ago. which |
should cause more conservatism tnau 1
heretofore. Harmony. the backbone of /
the bull movement, has been weakened. /
and IN struggles between giants little men
must keep out Of danger
Transactions on the New York Stock /
Exchange during the week just ended ag-