Omaha daily bee., 1902-10-12
NEW YORK sTOCKs AND BONDS.
Even Bankers Cannot Wen Explain
the Present showing.

NEW YORK, Oct. 1.-THE response of
the stock market to a shock marked by a
poor bank statement served as evidence of
the large marginal holdings of stocks that
must still remain I'm the market. The ner-
ther withdrawaIs of credits from the stock
market by the banks could hardly be due
to. others than those holding stocks on
best equipped financial authorities could
pretend to explain the showing made by
the banks. The shifting of loans, due to
the syndicate's operations, may be sup
posed to have offset the large liquidation
In the stock market and thus account for
the expanded loan account of the banks.
But conjecture is at a loss to account for
the disappearance of the expected gain OF
over, 100000 in cash reserves, as a result
of the receipts Of foreign gold during the
week. The small gain in e-e net deposit
also fails to prove with the changes in
the loan and reserve items. The state
ment showed the standing OF the surplus.
with the exemption of reserve allowed
against government deposits, as well as
policy of the banks OF not encroaehing
upon the reserves against government de-
posts mas hns 6 0een so &c, oIee spscu sa1ws IA as nc 10
hope of a resort to hat relief. There was
some large selling before the appearance
uted to the account Of a large operator.
who was a seller at different times during
the week. but the selling at the last was
quite promiscuous, including the putting
out of short lines by professional traders.
The assumption was general that further
loan contraction by the banks is to be ex-
Important liquidation Of marginal ac-
counts has been effected in the stock mar
ket this week. with corresponding benefit
TO the resources of the banks available for
other purposes. The result has been a
growing relaxation OF the pressure upon
stock market borrowers 10 sell stocks and
repay loans. The question has come into
prominence whether the forced liquidation
rs finally over for the season and the spec
ulators short OF the market have shown
their fears that this may be true by GOV.
ering their short contracts. The shOrt
| covering has been an important element IL
the recoyery In prices, but Observers have
professed to see evidence of buying by i'm
portant inside interests as sell. Notwith,
standing the important recuperatiOn &C,
complished by the banks they have per
sistently RETAINED from extending theil
stock market loans and have implied theil
conviction that II is the part of wisdom L
! conserve their resources for the large dc
mand from the interior which Is stin likely
TO be made, The unchanged form 10 which
last Saturdays bank statement was giveI
out, counting government deposits witt
others as demanding the maintenance o
reserves against them. I'm spite OF the per
mission by the secretary OF the treasur!
10 release the reserves against government
deposits, was accepted as notice from tn
banks that no loans would be extended q
stock market borrowers. The importan
liquidation Of the early part Of the weel
followed. There is good ground for the be
lief that this included laTr- holdings b,
some OF the powerful pools and individual
operators who have striven TO contest IN
reaction and revive the bull speculation
In addition 70 the relief Of the money mar
ket thus afforded no less than 100000 o
abb to the New York market OF thi
about $4,000 was OF Australian gol
transferred by telegTaph through the sub
on us arrival there. and the remainder wa
made up BY parcels Of gold from Europe o
the lot Of South African gold secured O