Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-09-27
FINANCE AND TRADE
Stocks Freely Sold at the
Opening.
RALLY CAME LATER
SHORTS EXPECTED UNFAVoR-
ABLE BANK STATEMENT.
Rushed for Cover When They Wound
Their Predictions Were
Wrong.
R ALLY CAME LATER
Special Dispatch to The Evening Star.

Special DISPATCH to The Evening Star.
NEW YORK. September 27.-The stock
market this morning was inclined to be
feverish under a moderate volume OF pro-
fessional business. Stocks bought yester-
day were sold out in the fear that the
bank statement might suggest a further
liquidation OF loans during the coming
week. Later in the day the market rallied
sharply because bank statement predictions
had all failed. and a very good report made
Of the weeks changes in the more import
ant items.
An increase Of A.s7s.675 in reserve was
a most unexpected achievement inasmuch
as 1t eliminates the deficit entirely and puts
the surplus holdings Of the clearing house
banks over s. 100000 above legal require
ments. Loans have been reduced $l3352.
COO and deposits are smaller by $i2.351 800.
A most gratifying surprise was net gain
Of n.1oo.7 200 in lawful money instead of an
estimated loss in cash of 81, 800, 600
This latter estimate being based upon the
known movements of money to the interior
clearly indicates that the good results OF
todays statement are partially due to the
peculiar methods of bookkeeping employed
in arranging the weekly bank statement.
The general situation has been decidedly
benefited by the weeks efforts to discour
age overtrading by speculative cliquss.
and the action of the banks is most COM
mendable. The treasurys action in back
ing up the banks, while extremely modest
and falling just short of substantial re-
suits. has had a wholesome sentimental
effect.
Another fortnight should show a more
normal condition. and the immediate course
of the market will depend upon the grain
transportation. earnings and the foreign
exchange market.
An encouraging feature of the week has
been the support given prices by leading
interests and the announcements made that
October dividends and interest checks would
be mailed a day or two earlier. The general
effort to relieve the money market carries
with 1t the suggestion that immediate &C
ton was imperative.
While the treatment has evoked a favor
able response, the anxiety occasiOned by
the suddenneSs with which the remedy was
applied has not wholly given way. Conf
dence may return with few weeks. buI
at the moment stocks seem likely to be dis
tributed on all rallies. Professionalism will
have It's day, and the public will only be at
tracted into the market on the weak days
In some quarters the advice given Is to
hold on to good stocks and to buy nothing
for the time being.
There Is general confidence in higher
prices, but there Is also a general recognl-
ton Of the wisdom of starting from
lower level.
The sweeping decision in the Steel COM
pany's suits which sustains the legality OF
the new bond issue had some effect on the
prices of those shares. The preferred stock
was stronger than the common on the the
DRY that the saving in interest would first
apply to that issue, particularly In lean
years. The decision Is of great Importance
to Industrial corporations and II sustained
on a further appeal will mark an impor-
tant epoch in industrial financing.
The news from the coal strike has not
changed materially during the week, and
the coal stocks have been going through
movements in sympathy with the general
market. The statement of Atchison show
ing a fraction less than 10 per cent earned
on the common stock gives some idea OF
what sort of returns may be expected from
this years crop movements.