Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-09-30
FINANCE AND TRADE
Stocks Were Stronger on
Easier Money.
BIG GAINS IN OPENING
ACTION OF TREASURY RELEAs-
ING RESERVE FUNDS.
Belief That Liquidation VIII Be the
Rule Till Janu-
airy l.
BIG GAINS IN OPENING
Special Dispatch TO The Evening Star.

Special Dispatch TO The Evening Star
NEW YORK, September 3-The action
of the Treasury Department in rslaas,n,
some 300OO.OO0 of reserve held against
government deposits. otherwise amply Sc
cured by the deposit of bonds. eliminated
the scare under which prices declined in
yesterdays market. Opening prices re-
fected gains equal to the net losses In some
OF yesterdays most active issues Gains
varied from to per cent and were well
distributed throughout the active list.
The rate for call money touched II per
cent early in the day, but was down to =
at the close of the noon hour As the local
banks have about $4,000 900 of government
money on deposit the action of Secretary
Shaw will release at once about $40 900 900
to this center in actual cash and at least
FOUR times that amount of new credit will
be created. The relief measure extends also
to the deposit of such securities as are APP
proved by the several states as security
for savings.
Only such issues as have come through
the 1888 panic will be accepted and then
only at one-third Of their value in 1891
This latter valuation for tried securities is
entirely conservative and amply protects
government money on deposit, as well as
releasing the government bonds now used in
that connection, but which will be immedi-
ately repledSed to the government to secure
circulation. While the action has undoubt-
eddy saved the market from the hardships
OLA spectators panic, 1t does not encour-
age any sustained advance.
The banks may be relied upon to see that
credits are not Immediately strained to the
breaking point
Liquida ton in the stock market is to be
expected for the balance Of the year, but
there is no longer any occasion for forcing
the process. The drain for crop-moving
purposes will continue for another three
weeks. inere Will be strong and weak sides
to stocks side by side for a time until the
liquidation has been sufficiently general to
have cleared the financial atmosphere.
News from the coal strike was vague.
but in the main there a general ten
dency to consider the chances for settle
ment as improving. The mysterious Phila-
delphia conference leads to the belief that
some new proposition is impending, The
coal stocks were supported and rallied later
in the day on rumors of an early announce
ment looking to a settlement.
The announcement that the minority in
terest in Louisville and Nashville would
be amply protected had a beneficial eff
feet on the southern issues. The stock di-
rectly concerned was sold on rallies, how
ever, on the theory that it might get a
smaller dividend than was at first inti-
mated. Illinois Central and Southern shares
reflected pool support.
Missouri Pacific opened from lib to III,
as compared with its closing level Of 1Il1a
yesterday From the high point loss Of
nearly per cent was recorded but around
11o the stock was supported. Manhattan
was another of the Gould shares to be given
support, and there mixed demand for
Wabash which helped prices
St. Paul was marked up very sharply and
had good sentimental effect on prices, the
buying was credited to inside supporting or
ders and the covering of short stock. Union
Pacific and Southern Pacific We're stronger
under a professional demand.
The steel stocks rallied easily and numer-
Gus evidences of support were received in
all parts Of the industrial list Sentiment
oh Ocd hut fhnr
much of an increase in the outside demand.
A day Of enthusiasm is entirely natural
In view OF the recent gloom. but the way Is
not open for a bull campaign. Dizziness is
now the most desirable thing for the Sc
curity market. The advance was overdone
there was danger of the decline getting be-
yond control and neither condition should
be Immediately forced upon a reviving pa
tient.