The times. [volume] (Washington [D.C.]) 1897-1901, 1901-05-13
STOCK MARKET COMMENT
The Bank Statement Less Favor.
able Than Expected.
Only Eight Millions of Surplus Re-
serve Held in New York - Henry
CIews' Optimistic Review OF the
sIfuptfop The shock Well Met.

serve Held in New YORK - henry
CIews' Optimistic Review OF the
situation - The shock Well Met.
NEW YORN. May 12-Yesterday s
bank statement was not as favorable as
had been anticipated by the street, but u.s.
nevertheless, better than should have been
expected by those who knew how great
IN the loans granted by the banks had
been enlarged The absolute loss of cash
is 81. 757 500. 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-
tioI 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.127, 40 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 will be svery much
stronger than that shown in the state
mcnt. Every item comprised in detailing
the position of the banks must develop i'm
provcment. The loans will 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 1t may be re-
marked, sold frequently under compui-
sion by the banks which had made the
loans. The next most important change
VIII 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 speculators. one of whom was re-
ported to have given checks for si.o0o,0p-
on account of losses Deposits have also
been lessened by the purchases OF those
good souls who buy stocks in panics and
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 10 remarkable extent by
the currency which has been shipped to
New York from every financial centre for
the payment of losses, or for stocks
bought bv the remitter. 1t was reported
that S2O,0oO.OOO had been sent from Chica-
go alone, and though the amount was
probably 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
ment viii be marvelously favorable.
Henry Clews, in commenting on the
stock market situation, says:
THE long-expected reaction in Wall
Street arrived. 1t came too, as usual, at
a time and in a manner least calculated
upon corner in Northern Pacific, the
like of which has never been seen, was
the test which developed the breaking
point. All 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 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 it has been well met.
That the market could stand a loss of
twenty to sixty points in the short space
of two hours is astonishing testimony of
its inherent strength.
Scarcely sign OF weakness appeared
in responsible quarters. and losses were
faced in a fashion that was surprising.
In previous panics of smaller dimensions
serious disaster has invariably accom-
panied such a break, but nothing of this
sort was heard on Thursday when the
cyclone was at its height. What the re
suit of this crash Will be. IL is difficult to
forecast. 1t is quite likely TO afford a
very effective check to crazy bull spscuia-
ton. Prices were too high. and more
moderate reaction would have been high
ly beneficial AS it is, it seems improb-
able that the bull leaders sill be able 10
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 magnates and that
the harmony theory upon which such
eXtraVagant hopes were based has been
worked to its full value. II is now quite
evident that prices VIII receive strong
support untH a good recovery has taken
place in the market. Conditions however
are changed from a week ago, which
should cause more conservatism tnan
heretofore. Harmony. the backbone of
the bull movement, has been weakened
and In struggles between giants little men
must keep cut Of danger