The times. [volume] (Washington [D.C.]) 1897-1901, 1901-01-13

! ming the gransers spurted up to their
record prices for the boom and were fol-
lowed by the railway list generally. This
advance led to the second of the big
slumps that have occurred. 1t was
sharper drop than that of the preceding
week. Prices went off 3 to 10 or more
points. Since this break there has been
gradual recovery, though there have been
daily fluctuations of or points that
would be considered most important in an
ordinary market. At the close yesterday
the average level of prices was consid
erably better than that of Saturday a
week ago, though some stocks had de-
clincd. The tone yesterday was strong
all day, and il seemed very certain that
the larger interests were again giving
their support.
The breaks of the past week and Of the
week before are not to be attributed TO
any change in the business situation, or
in fact TO anything except the technical
market condition. The business and fnan-
cial conditions are improving rather than
going backward. All the business records
are excellent and the supply of money
continues to increase until at the present
time it is impossible to find users FOR it.
And further than this the outlook every
where IS excellent. The railways that
have bsen increasing their earnings stead
lily fer five years past are now joining
combinations that will make further in
cTeases ineyita Bile. With more money in
The country than ever before the steady
increase in the balance of trade assures
a continuance of this condition It is
on this general outlook that the boom has
been based. 1t is because of it that the
most conservative investors believe the
advance in prices will go much further
ultimately. The chances favor the bulls
even in the immediate market. They al
ways do when the intrinsic conditions are
satisfactory and there has been a break
of three to ten points. Such a break
means that many people have taken
profits and are now out of the market. If
also means that the average commission
house account has been wiped out or
badly crippled, and that the insiders have
secured its stock. II is when these things
have happened that prices usually begin
to go up.
The bank statement yesterday was the
best for many months. The figures were
as follows:
Reserves increased ...................S s.O5l 975
Loans increased. ..-.....--............ 4G42, so
Specie increased .......-............... slSS,I0o
legas increased. Observation-Disclosures. S.5ii,sp1
Deposits increased. ii3sG,l00
Circulation decreased ............. ll,G02
1t will be seen that there WAS an in
crease in cash during the week of nearly
S12 900. GOO and that two-thirds of this
amount was added to the surplus reserve,
the increase in loans accounting for the
remainder. The amount of surplus re-
serve is now more than S22 0oO, 0GG. Stimuli
taneously with the issuance of the bank
statement money was offered on call at 2
per cent in New York and found no
takers. Those two facts reflect the fnan-
cial situation admirably. 1t is entirely
probable that there vii! be shipments of
gold this week, but they will not have
much if any bad effect, the financial men
say. There is, in fact, money TO spare.
The trouble is to find ways TO keep it
from idleness.