The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-10-04
FALSE RUMOR
GIVES ALARM
Report That Secretary Shaw
Was 0verruIed
EXCITFS WALL STREET
Stocks Went TumbIing Till
Rumor Was Denied.

New York. Oct s--The stock market
was thrown into violent decline this
: afternoon by the receipt OF dispatches
/ from Washington by TWO Wall street bu-
reaus. saying that the comptroller Of the
currency had declared illegal Secretary
/ Shaws plan 10 abolish the 3 per cent
! reserve on government deposits in na-
tional banks and thus put see 90. 90 out
TO relieve the money market The news
was mashed through Wall street by the
/ ticker service and in q short time heavy
+ blocks OF stocks were offered for sale
/ at raploly falling prices. St Paul. which
had been strong al day fell 5a.c: Mis-
souri, Pacific, sc; Reading, 4; Union Pa
cific. /; Illinois Central. 81; Baltimore and
Ohio. General Electric and Colorado Fuel
each, 81. and other stocks from / 10 3
points. The rush 10 unload was over
whelmirg for a time. but orders 70 buy
We're given by strong interests. 10 protect
securities, and q rally followed. Near
the close an authorized denial was re-
ceived from the comptroller OF the cur
I rency and the market closed active and
strong.
New York. Oct. S.-The principal news
in tOdays stock market turned out 10
be untrue but the false report was ef-
fective in breaking the market and in
throwing il instantly into a state OF CON
fusion as great as that OF last Monday.
The report which was circulated immedi-
ately after O'Clock that the comp
trOller OF the currency had ordered
hoated the direction Of the secretary Of
the treasury 10 release cash reserves held
by the banks against government dspOs-
(. its offered dire prospect 10 spectators.
Such a decision would throw the money
market situation bac TO as strained a
condition as that which threatened a
panic last Monday. The situation, in
fact, would have been worse in that the
forces of depletion OF bank reserves have
continued in operation during the week
while some advantage has been taken IN
the loan market OF the better conditions
resulting from the treasurers measures.
Today. especially. there was some con
spicuous respmtion OF speculative activ-
ity on the part OF various pools. notably
that in Colorado Fuel. on the ground
that the election ordered by the court
viii settle the question Of control OF the
property. in St. Paul by theh same in
terests which caused its recent advance
and in the coslers on the circulation Of
constant rumors regarding the outcome
Of the conference at Washington. The
seemed TO aggravate the rop when the
canard was put out regarding the al
legged action Of the comptroller OF the
currency. The fact that the ccmptrOl-
Ter was present and in consultation with
the secretary OF the treasury during his
visit In New York when his action was
taken was lost sight OF and the specula-
tive public seemed 10 swallow the story
without question.
The hrNek in Trfree Al no xx-al
from ! TO nearly 6 points In the active
stocks. The market closed with a vio-
lent rally in progress, caused by the de-
malls OF the story. Tomorrows bank
statement Will contain an additional item
TO show government deposits with the
banks. in order TO diherentiate the other
deposits, against which a 3 per cent cash
reserve is required. II is supposed that
the item Of government deposits viii be
in the neighborhood OF 100000. thus
reducing the reserve requirement and
benehtti1g the surplus By about $1,000.
The preliminary statement OF cash move
ments in dicates that the banks have lost
nearly a million dollars 20 the interior
on the direct express movement and SsZi-
Co TO the sub-treasury The sub-treasury
operations include deposits for transfer
TO the interior. except $4,000 20 New Or
leans and $4,000 20 Chicago, which was
deposited for that purpose today. and
also the payment OF anticipated govern
ment interest made through the New
York sub-treasury. The payments 81
government interest due after October 1
and the application TO substitute other
than government bonds 10 release per
cents for the purpose Of additional circu-
iation seemed 10 promise little relief 10
the situation thus far. The heavy de-
mand for exchange today for next Tues
DAYS steamer showed the small pros
pect Of any movement % gold this way
for the present. Some $4,000 IN gold
was drawn from the Bank Of England
today for shipment abroad
The weekly exhibit Of the Imperial
Bank of Germany showed a loss ~ over
81 .o00.6ao in gold. loan expansion ~
over Sc t1.0o and an increased note Is
sue of Mt $500. 90. thus bearing out
the showing Of other European banks 81
the heavy requirements upon the kuro-
pean money market
The bond market was steady. except
for the furry in the last hour Total
sales par value. ASSOC. United siaes
bonds were all unchanged on the last
cali
lows