The Birmingham age-herald., 1902-10-05
EXCITING SESSION
 IN STOCK MARKET
Confusion Resulted in a Lower
 Level of Prices
SEVERAL SEVERE SHOCKS
Failure of Coal Conference at Wash lnston to Effect Settlement Pre- vented Any Recovery-Rank
 Statement a Hard Blow.

! New York, October 4-There was much confusion and excitement in today's stock market which resulted in the last prices dropping to level of from to points lower than last night for most of the prominent active stocks. The failure of the coal conference at Washington to effect a settlement prevent>.l the recov- cry which would naturally have followed from the refutation of yesterdays false rumors that the comptroller of the cur rency had overruled the decision of Sec retary Shaw to remit the requirement upon national banks to maintain % per cent reserve agreement with government deposits. After a time the market re- sceiYcd second shock from the appear ahee of the bank statement without change in it's form to indicate the reduc- tion in reserve requirements permitted by Secretary Shaw. That is to say, gov ernment deposits are still included with the deposits and reserve requirement es- timated as 25 per cent of the total. with a result that decrease in the surplus is indicated of s1,417.425. bringing down that item to $1,S19,2OO.
 The clearinghouse commission was long in session before the bank statement was given out and no statement accom- panied it to show what policy dictated it. A footnote to the bank statement gives the amount of government deposits with clearinghouse banks. Whatever may be the motives impelling the action of the clearinghouse, the operators in stocks jumped to the conclusion that for stock market purposes the position of the New York banks is to be regarded as though Secretary Shaw's ruling was not in force The fact remains that the secre- tary's permissive latitude upon the banks Is available in case of a determination by the clearinghouse to change it's de- eison or to relax it's rule at it's own dis cretion. The marked strength of foreign exchange as a result of the weeks easy money market and the shutting off of any hope of gold imports, or even with some apprehension of possible demand for gold exports, probably influenced the clearinghouse authorities. The Imperial Bank of Germany followed the example of the Bank of England and advanced It's discount rate l per cent today. The London Statist makes the point that po- litical uneasness in France is inducing the withdrawals of savings banks de- posits and aggravating the pressure for money, leading to withdrawals of French credits placed with foreigners.
 Money rates continues high in all de- partments most of the week. Call loan rates settled down to about an IS per cent basis and time loans up to 4 months cont manded a premium over the six per cent legal rate. The conviction emerged that high money rates are likely to be main tained for the remainder of the year. It is felt that a prodigal replacement of the relief fund in stock excahnge loans would endanger the situation again and the policy of bankers and large financial powers has been enough to discourage any renewal of speculative activity for the present.
 The steps taken by the secretary of the treausry are too well known to need recapitulaton. Undoubtedly the most ef- fective was the remission of the require- ment upon national banks to maintain a 9 per cent cash reserve against govern ment deposits in their vaults, as those deposits are held to be amply secured by the government bonds placed in the custody of the government.
 The advance in the Ban of England discount rate from to per cent is the index of the strengthened conditoin of the foreign money market and the unwilling ness to part with any of their gold re- serves. Next week the final 20 per cent installment on the British consol issue calls for about $25, 0OO000 in the London money marAet. The proposed Transvaal loan looms in the perceptive and is ex- pected to be for $25O 900, GOO. A Japanese loan, French loan, a Russian loan and loans to various small European govern ments are in the background to prompt conservation of resources in the Euro pean centers. Our imports for September were of record proportions. Cotton has gone out quite freely, but the high price of wheat, owing to the September specu- lation and the slow movement of corn to market has kept down the exports of those staples and the supply of exchange bills to meet maturing obligations. The probability of further imports of gold beyond an expected arrival of $4,0O0,0OO at San Francisco next week is not counted upon. The careful husbanding bank re- sources is believed to be imperative to conserve the safety of the markets for the present. It is very notable, however, that confidence in the prosperity of the general conditions Is unimpaired Stocks were not sold willingly even when money rates were higher and only the exigencies upon the banks themselves sufficed to force liquidation The determination is still strongly manifest to keep all the re- sources that can be secured in holdings of stocks
 Prices of bonds were well sustained United States old As coupon advanced H per cent and the new As declined A per cent as compared with last week 8 closing call
 New York Stocks.