The Montgomery advertiser., 1902-10-12
WALL STREET REVIEW
POOR BANK STATEMENT CAUSED
 A SHOCK.
Financiers Cannot Explain the Show ing Made-Banks Persistently Refuse to Extend Their
 Stock Market Loans.

| still remain in the market
 | The nervousness disclosed by the pros- | pect of further withdrawals of credits
 from the stock market by the banks | could hardly be due to other than those | holding stocks on margin with borrowed
 money. None of the best equipped finan- | cial authorities could pretend to explain
 the showing made by the banks. Ths | shifting of loans due to the weeks syndi- | cate operations may be supposed to have | offset the large liquidation in the stock l market and thus account for expanded | loan account of the banks. But conjec- 1 ture Is at loss to account for the disa D. | pearance of the expected gain of over | $2,000,O0 in cash reserves as a result of week The small gain the net deposits also fails to prove with the changes in the loan and reserve items
 The statement showed the standing of | the surplus with the exemption of re- serves allowed against government de- l posits as well as without that exception. | But the present policy of the banks Of | not encroaching upon the reserves | against government deposits has been so l clearly shown as to leave little comfort ! for speculators in the hope of resort | to that relief. There was some large | selling before the appearance of the bank
 account of a large operator who was a | seller at different times during the week, | but the selling at the last was quite pro-
 miscuous, including the putting out of ! snort UneS Dy DTOIeSSlOndl ne assumption was general that further
 loan contraction by the banks is to be | expected.
 Important liquidation of marginal ac-
 market 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 to sell stocks and repay loans
 The question has come into prominence
 whether the forced liquidation is finally
 over for the season and the spectators
 short of the market have shown their
 fears that this may be true by covering
 their short contracts. This short cover
 ing has been all important element in the
 recovery in prices, but observers have
 professed to see evidence of buying by
 important inside interests as well.
 Notwithstanding the important recuper-
 ation accomplished by the banks, they
 have consistently refrafned from extend-
 ing their stock market loans and have
 implied their conviction that it Is the
 part of wisdom to conserve their re-
 sources for the large demand from the
 interior which is still likely to be made
 The unchanged form in which last Sat
 urday's bank statement was given out
 counting government deposits with oth-
 CTS as demanding the maintenance eof re-
 serves against them, in spite of the per mission by the Secretary of the Treasury to release the reserves against govern ment deposits. was accepted as notice from the banks that no loans would be extended to stock market borrowers. The important liauidation of the early part of the week followed There is good ground
 for the belief that this included large
 holdings by some of the powerful pools and individual operators who have striV-
 en to contest the reaction and revive the
 dull speculation.
 In addition to the relief of the money
 markeet thus afforded no less than $5,-
 0O0.0O0 of belated gold arrivals have been
 made available to the New York mar ket. Of this amount 8. 100000 was of Aus
 trallan gold transferred by telegraph through the sub-treasury from San Fran cisco immediately on it's arrival there | and the remainder was made up by par | cells of gold from Europe of the lot or | South African gold secured on passage | by the National City Bank There have ! been large payments on account or New | York taxes during the week, and the de- posit of the proceeds in the banks has | added to their resources. There have
 been some large syndicate transactions also. including the payment of DO per | cent installment of nearly $lSO0O.OOO on account of the Louisvillee and Nashville | transfer and a 30 per cent call or sub scriptions to the ship combine syndicate | for about $l5, GOO. 600. Preparation Tor
 these was an unsettling influence on the ] money market, but the payments were presuma bly, redeposited in the banks. The | banks however, still refrained from re l lending in the stock market and the money StringencV continued.
 When buVing of stocks was renewed on | the presumption that the increased bank | ing resources were to be made available | for the stock market, the call loan rate | would be run up to l5 per cent which | is considered TrOhibitlVe Tor stock SD ec- ulation purposes.
 | It Is evident that the liquidation has | been held well In land and directed with | a purpose to avoid all possible dana ge. | The interests involved In the large spec ,11a itF.sn init mo mi n | in the control of the banks and trust | companies, in the ownership of the large railroad systems and in the great pro- | jects of combination and their resulting | crop of new securities. are so intimately | related and so nearly identical, that this l cautious and cOnsiderate policy is cas- | fly understood On this ground. the ~re- | taxation of the pressure upon marginal | holders might be interpreted as designed | to steady prices in preparation for fur | ther liquidation and to take advantage ! of the short sellers driven to cover by a | rally in prices. Speculative sentiment Is | thus kept in uncertainty whether the nee essary liquidation has been accomplishe ed | or whether it has simply paused. Looking to the future there IS no fur | ther important relief for the New York
 money market in sight until the interior | movement of currency shall turn again | in favor of New York. Practically all of | the gold reported engaged both in Aus | trala and across the Atlantic has now arrived and Is in the reserves of the New | York banks.
 Discounts have become cls'er at the | foreign money Centers but the dOWnwa I'd | course of sterling exchange which re- | suited has been checked by the demand | for remittance in payment of obligations. | The great foreign banks continue to lose gold and it is estimated that the Bank of England is about to take measures to
 make it's discount rate effective in the open market and thus obstruct the on-
 ward movement of gold.
 The fine weather of the week has been
 favorable to the movement of grain which
 has been delayed and the downwa I'd
 course of New York exchange at Chicago
 indicated increasing pressure there for
 currency but the forward movement of
 grain Elr promise also of replenishing
 the supp,y of bills in the foreign ex- change market With the cessation of the active pressure upon borrowers 10
 liqudate, there has been increasing atten-
 tion Snaid to the effects of the anthracite
 miners strike, and the varying phases of that contest have been reflected in price movements.
 Bonds have shared to q degree in the depression of stocks |. $. old Is and 5s
 advanced 1-4, the 3s 1-2 and rhe new IS per cent as compared with last weeks
 closing call.
 Treasury Statement
 Washington. Oct. 11.-Treasury balances S219 799, ,079; gold, $l36, ,586,415