The Birmingham age-herald., 1902-10-04
FALSE REPORTS
 BREAK MARKET Rumor That Comptroller Had 0verruIed Shaw's Decision II PROVED TO BE UNTRUE Market at First Suffered, But Closed With a Violent Rally In Prog
 ress, Caused by Denlals
 of the Story.
 
II PROVED TO BE UNTRUE

New York, October s.-The principal hews in today's stock market turned out to be untrue, but the false report was effective in breaking the market and throwing it instantly into state of con- fusion as great as that of last Monday. The report which was circulated imme- diately after 2 o'clock that the comp troller of the currency had overruled the decision of the secretary of the treasury to rlease cash reserve held by the banks against government deposits, offered a dire prospect to spectators. Such de- cision would throw the money market situation back into strained condition as that which threatened a panic last Monday. The situation in fact would nave been worse, in that the forces of depletion of bank reserves have continued an operation during the week, while some advantage has been taken in the loan market, better condition resulting from the treasurers measures Today especially there was some conspicuous resumption of speculative activity on the part of various pools, notably that in Colorado fuel on the ground that the election or- dered by the court will settle the next question of control of the property in St. Paul by the same interests which caused its recent advance and in the coalers on the circulation of constant rumors regarding the outcome of the conference at Washington.
 The higher level of prices thus attained seemed to aggravate the drop when the canard was put out regarding the alleg- ed action of the controller of the cur rency The fact that the controller was present and In consultation with the sec retary of the treasury during his visit to New York when his action was taken was lost sight of and the speculative public seemed to swallow the story with out question. The break in prices ran all the way from to nearly six points in the active stocks. The market closed with a violent rally in progress caused by the denials of the story.
 Tomorrow's bank statement will con- tain an additional item to show the government deporits with the banks in order to differentiale the other deposits Against which 25 per cent cash reserve Is required. 1t is supposed that the Item of government deposits will be in The neighborhood of $40000,000.
 The preliminary statement of cash movements indicates that the banks have lost nearly a million dollars to the Interior on the direct express movement and 1000 to the sub-treasury. The sub-terasury operations include deposits Tor treansfer to the interior, except $4O0,- l-- to New Orleans and 100000 to Chi cago, which were deposited for that pur- pose .-1ay and also the payment of an- ticipated government interest made through the New York sub-treasury The payments of government interest due after October 1 and the application to substitute other than government bonds to release consol per cents for the purpose of additional circulation seemed to promise little relief to the situation thus far The heavy demand for exchange today for next Tuesday s steamer showed the small prospect of any movement of gold this way for the present. Some S1. 755.000 in gold was drawn from the Bank of England today for shipment abroad
 The rush to unload was overwhelming for a time, but orders to buy were given by strong interests to protect securities and rally followed. Near the close an authorized denial was received from the controller of the currency and the mar ket closed active and strong. The week. ly exhibit of the Imperial Bank of Ger many showed loss of over $31, 100000 in gold, a loan expansion of over $60 000, GOO and an increased note issue of about Io, GOO. thus bearing out the showing of other European banks of the heavy recruitment upon foreign money markets.
 The bond market was steady, except Tor the f1uery in the last hour of the mar ket Total sales, par value, $4965,- O.. United States bonds were all unchanged Dn the last cali.