Omaha daily bee., 1902-10-05
NEW YORK OCK n BONDS
onfusion and Excitement, but No
shaking of General Confidence.

NEW YORK, Oct. 4.-There was much
confusion and excitement In the stock mar
at a level from l to 3 points lower than last
night for most of the prominent active
stocks. The failure OF the coal conference
at Washington TO effect a settlement pre-
Snted the recovery which would naturally
have followed from the refutation of yes
teIday's false rumors that the comptroller
of the currency had overruled the decision
OF Secretary Shaw to remit the requirement
upon national banks TO maintain a % per
cent reserve against government deposits.
After an effective recovery the market re-
ceived a second shock from the appearance
o. the bank statement without change in
its form to Indicate the reduction In reserve
requirements permitted by Secretary Shaw.
That is TO say, government deposits are still
included With the deposits and reserve re-
qUirement estimated at % per cent OF the
total, with :he result that a decrease In
the surplus Is indicated OF Sl,4l7,425, bring
ing down that item to N,Sls,20. The clear
Ing house commission was long in session
before the bank statement was given out
ara no statement AeGomPanleu II 10 snow
bank statement gives the amount of gov
eminent deposits with clearing house banks.
Whatever may be the motives impelling the
action OF the clearing house the operators
In stocks jumps to the conclusion that
for stock market purposes the position or
the New York banks Is to be regarded as
though Secretary Shaw'sr ruling was not In
force. The fact remains that the secre-
tary's permissive latitude upon the banks
Is available In case OF a determination by
the clearing house TO change It's decision
or to relax It's TIle at It's own discretion.
The marked strength of foreign exchange,
as a result OF the weeks easy money mar
ket and the shutting ON or any hope of
gold imports, or even with some apprehen-
sion OF possible demand for gold exports,
probably Influenced the clearing house au-
| thOrites. The Imperial Bank of Germany
followed the example of the Bank of Eng
Ian and advanced its discount rate l per
cent Today.
Banking conditions had become such at
the opening OF the week that a considerable
loan contraction was imperative, and loans
placed In the stock market were called In
such large volume as to run the call loan
rate up TO 80 per cent and precipitate a
crisis in the stock market Monday evening
the market closed In a state OF demoraliZa-
ton and there were grave fears that a
panic would ensue on Tuesday. But the
next morning the announcement had been
made OF the drastic measures for the money
situation offered by Secretary Shaw, and
there was a c~onvulsive rebound In prices of
stocks which rather more than wiped oui
the semi-panic decline OF Monday. The
nervousness and excitement OF the trading
decreased from day to day until the mar.
Ne. settled down into dullness toward the
end of the week. The level Of prices had
reached about that OF last weeks closins
and was higher In some cases. so mucii
for the market effect of the Important
steps taken by the secretary OF the treas
ury. The e1ect on the money market was
equally marked, but not so prompt. The
extreme ~stringency of the market was re
iieyed and a stop was put 70 the forced
continued high In all departments. Cal
loan rates settled down to about an ) Der
cent basis and time loans up to four months
commanded q premium over the s per cen;
high money rates are likely to be main.
tainod for the remainder OF the year. Ia IA
felt that. a prodigal replacement OF the re-
lief fund In stock exchange loans would