The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-10-05
MARKET RECEIVED SHOCK
FROM BANK STATEMENT.
Confidence In the Prosperity Of the
Country Is Growing, However, and
Operators Arc Holding Stocks.

New York October 4-rhere was much
confusion and excitement IN today's stock
market which resulted IN last prices from
1 to 3 points less than last nights prices
IA the prominent stocks, The failure az
the coal conference al Washington to eject
a settlement kent the market from rising
MS It would have done on the RECITATION OF
the cannrd IN regard to the controllers dc.
cisIon n regard 20 the governments de-
posits. After an active recovery the mar
ket received a second shock from the APP
pcaranre Of the bank statement. without
change IN Us form to indicate the reduc
ton IN reserve requirements permitted hy
Secretary shaw. that is 70 say. government
deposits are stin includcd with the d.
poslts and reserve requirements. estimated
az - per cent OF the total. with the result
that a decrease IN the total. VITA srrpus
IS Indicated OF Si4iT.425. bringing down
that item to Slsle,2oo. The clearin-
house committee was long IA session before
the bank statement was given out. and
statement accompanied 81 10 show what
policy Dictated Il. A foot note to the bank
statement gives sthe amount 81 government
deposits with clearing house banks What
ever may be tie motives impclilng the &C.
tlon OF the clearing house. operators ia
stocks lumucd 20 the conclusion that for
stock market purposes the position % the
New York banks Is TO be regarded as
though secretary Shaw's ruling was not
iu force The fact remains that the sccrg'
tsry's permissiye latitude uuon the banks
De- available Ia ease of determination by
tile clearing house 10 change its decision or
TO relax its rule at its own discretion.
The marked strength OF foreign exchange
as q result Of the weeks extraordinary
money market and the shutting on Of any
hope 81 gold imports. or even with some
apprehension OF possible demand for gold
exports, probably Influenced the clearing
house authorities.
FOREIGN DISCOUNTS ADVANCED.
The Imperial bank OF Germany followed
tac example of the Bank Of England and
advanced it's discount rate l per cent TO-
day. The London statist makes the point
that tic political uneasincss IN France IS
inducing the withdrawals OF savings bank
deposits aad ageravating the pressure FOR
money leading to Withdrawals of French
credits placed with foreigners.
Banking conditions had become such at
the opening OF the week that considera-
bic loan contraction was imperative and
lodns uiaced 80 the stock market were
called Ia such large volume Us TO run the
call loan ratc vi TO - ner cent and prcelp-
Kate a crisis In the stock market. Monday
generalization and there were grave fears
that a panic would ensuc ON Tuesday, but
the ucNt morning the announcement had
been made OF the drastic measures for the
relief OF the money situation offered by
Secretary shaw and there was convulsive
rebound IN prices Of stocks which rather
/ more than wiped ont the scml.pauic de
cline OF Monday. The nervousness and cN
element OF the trading decreased from
day 10 day. until the market settled down
into dullucss toward the end of the week.
4 tHaa41f
or last weeks closing and was higher In
some cHscs
~ much for the market aud the effective
I stcys taken by the secretary of the treas
/ ury The effect on the money market WAS
/ equally grcat but not 50 prompt. The TX
/ trcmc stdugcnCy Of money WAS relieved and
20 stop put to the forced calling OF lnaus
I lal loan rates SETTLED down To about an =
4 per cent basis nnd tmc loans up TO four
/ months commanded premium over the q
! per cent legal rate. Tho conviction became
/ general HAT high money rates. arc likely to
! Dc Wuiutained for the remainder OF the
I your