The times. [volume] (Washington [D.C.]) 1897-1901, 1901-02-25

NEW YORK. Feb. IA turn in the
market for the better seems very prOba-
bic after the better showing of the banks
made for the week just closed. 1t will,
no doubt, be considerable of surprise
TO the professional element to discover
that loans have not grown la ger despite
the big deals which are one by one being
closed, all of which have required money
borrowed from the banks. Although there
was a covering movement Of some ma Sni-
tude on Thursday and buying for this pur-
pose was continued in the London mar
ket yesterday the local market still seems
TO be oversold.
Against the theories of the bears that a
further reaction is due because there have
been few Interruptions to the advance
which began last November, are the facts
that money remains easy and railway
earnings are showing steady increases
Insiders have not sold out their stocks
Undoubtedly there has been some liqul-
dation of speculative lines, but the fact
remains that the great bulk of the float
ing supply of securities is still lodged IN
strong hands Whenever the traders force
prices down they soon reach point where
there are few offerings Of stocks, and con-
seQuently such stubborn resistance to
pressure that the covering of shorts be-
comes a necessary move in order 10 pre-
vent heavy losses. Perhaps such a point
has been reached now. Certainly the rally
OF last Thursday and the Improvement
shown by the bank statement would indi-
cate such a turn.
Outside of the execution Of orders in
the London market by cable for the buy
ing or selling of the International RAN
way shares and the anxiety over the show
ing to be made by the bank statement
which brought many brokers downtown
there was little stirring in the Wall Street
district yesterday. The Cotton and Pro
duce exchanges were open for business,
but the trading was so restricted that IN
a measu the quotations established were
nominal. Buying of the American shares
in London was mainly by professional
traders, who were short of the market and
who desired to cover before the opening
ofthe local market tomorrow morning. This
covering was no doubt caused by the fear
that the bank statement would be better
than had been anticipated. or course, this
was a chance, as the London market
closed before the statement was announced
here.
The apprehension of the professionals
concerning the bank statement were well
founded That there should be a decrease
in loans Of 50 500, 100 at q time when large
syndicate operations were under way
which required advances of funds by the
banks and trust companies was the most
astonishing feature Of the statement 1t
is explained only by the theory that the
big borrowings known to have been made
were simply the shifting OF accounts,
which gradually worked out themselves.
Cash holdings were 81, SIS. 800 larger, due
to receipts from the Interior and the ex-
cess payments by the Sub Treasury There
was a decrease in deposits owing to the
reduction OF loans. which naturally ep-
pear as bookkeeping entries This cut
down the amount of reserve required,
making possible the increase in the sur
plus reserve OF 81 So .225, which was the
net result of the weeks operations.