The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-10-04

NEW YORK, Oct. 3.-The principal
news in today's stock market turned out
to be untrue, but the false report was eff
fective in breaking the market and throw
ing it instantly into a state of confusion
as great as that of last Monday. The re-
port, which was circulated Immediately
after o'clock, that the comptroller of
the currency had overruIed the decision
of the secretary of the treasury to re-
lease cash reserves held by the banks
against government deposits, offered a
dire prospect to spectators.
Such a decision would throw the money
market situation back into as strained
condition as that which threatened
panic last Monday. The situation, in fact,
would have been worse in that the forces
of depletion OF bank reserves have con-
tinued in operation during the week,
while some advantage has been taken in
the loan market of the better conditions
resulting from the treasurer's measures.
Today especially there was some conspic-
uous resumption of speculative activity
ON the part of various pools, notably that
IN Colorado Fuel, on the ground that the
election ordered by the court will settle
the next question Of control of the proper
ty in st. Paul by the same interests which
caused its recent advance, and in the
coalers on the circulation of constant ru-
mors regarding the outcome of the con-
ference at Washington.
Drop Aggravated.
The higher level of prices thus attained
seemed to aggraVate the drop when the
canard was put out regarding the alleged
ACTON OF the comptroller of the currency.
The comptroller was present and in con-
sultation with the secretary Of the treas
ury during his visit in New York, when
his action was taken, was lost sight of,
and the speculative public seemed to
swallow the story without question.
The break in prices ran all the way
from l to nearly points in the active
stocks: The market closed with a violent
rally in progress. caused by the denials
fnf1onr .r~Oxx ho,, Cfofn
ment VIII contain an additional item to
show the government deposits with the
banks in order to differentiate the other
deposits, against which 25 per cent cash
the item of government deposits will be
in the neighborhood of $40 600, 900, thus
reducing the reserve requirement and
benefiting the surplus by about $40, 900
600.
The preliminary statement of cash
movement indicates that the banks have
lost nearly s1,000,000 to the interior on
the direct express movement, and 1927, 600
to the subtreasury. The subtreasury OPP
erations include deposits for transfer to
the interior, except $4,000 to New Or
leans and s2oO, 600 to Chicago, which were
deposited for that purpose today, and
also the payment of anticipated govern
ment interest made through the New
York Subtreasury.
Little Relief Promised.
The payments of government interest
due after Oct l., and the application to
substitute other than government bonds
to release consol Q per cents for the pur-
pose of additional circulation, seemed to
promise little relief to the situation thus
far The heavy demand for exchange to-
day for next Tuesdays steamer showed
the small prospect of any movement of
gold this way for the present Some
$1,575, 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
$31 100000 in gold, a loan expansion of
over 100000 and an increased note is
sue of about SIS, 00o 900, thus bearing out
the showing of other European banks of
the heavy. requirements upon foreign
money markets.
The bond market was steady, except for
the furry in the last hour of the market.
Total sales, par value 81, 965, 900. United
States bonds were all unchanged on the
last call.
Stocks.