The Montgomery advertiser., 1902-10-04
WALL STREET REVIEW FALSE RUMoR THROWS MARKET
 INTO CONFUSION. Report Circulated That Controller of Currency Had overruled Secretary Shaw-The Story
 Swallowed.

NEW YORK. Oct 3.-The principal news in todays stock market turned out To be un- breaking the market and throwing it instantly into state of confusion as great as that or last Monday. The report which was circulated immediately after o'clock that the Con troler of the Currency had overrule1 the de- cision of the Secretary of the Treasury to re- lease cash reserves held by the banks against Government deposits offered dire prospect to spectators. Such a decision would throw the money market situation back into q strained condition 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 Tn operation during the week, while some advan- tage has been taken in the loan market with better conditions resulting from the treasurers s measures. Today especially there vas some conspicuous resumption Of speculative activity on the part of various pools notably that in Colorado Fuel on the ground that the cleo tion ordered by the court will settle the next question of control of the property in St
 Paul by the same interests which caused its recent advance and in the coalors OH the cir culation of constant rumors regarding the out come of the conference at Was hingt0u. The higher level of prices thus attained seemed to aSgrayate the drop when the canar1 was put out regarding the alleged action of the Con troller of the Currency. The fact thet the Controller was present and in consultation with the Secretary of the Treasury during his visit to New York when his action was taken Was lost sight of and the speculative public seemed to swallow the story without question. The nearly points in the active stocks. The mar kst closed with violent rally in progress caused by tho denials of the story. Tomorrow's bank statement will contain additional item to show the Government deposits with the banks in order to differentiats the other deposits against winch 25 per cent. cash reserve is required. It is supposed that the item of Gov ernmsnt deposits will be in the neighborhood of $40, 900 o0O The preliminary statement of cash movements indicates that the banks have lost nearly a million dollars to the interior the direct express movement and S927, GOO to the sub-treasury. The sub treasury operations include deposits for transfer to the interior. except S4oO, 900 to New Orlean and S2oo, 900 to Chicago, which were deposited for that pur- pose today and also the payment of anticipated Government interest made through the New York sub-treasury. The payments of Govern ment interest due after October lst and the application to substitute other than Govern ment bonds to release consol per cent s for the purpose of additional circulation seemed to promise little relief to the situation thus far. The heavy demand for exchange today for next Tuesdays steamer showed the small prospect of any movement of gold this way for the present. Some Sl ,575 900 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 of over S3l,- COG. 900 in gold, loan expansion of over S6O, GOO, GOO and an increased note issue of about S75, 900, 900, thus bearing out the show ing of other European banks of the heavy re- quirements upon foreign money markets,
 The bond market was steady, except for the furry in the last hour of the market. Total sales (par value) S4. 965 900 United States bonds were all unchanged on the last call