The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-11-30
Rise 10 Stocks 70 Be Checked by The
Treasury Department.
THREATENED TO WITHDRAW DEPOSITS
Governments Working Capital at Low
Level--Futher Sacrifices to Please
Spectators viii Not Be Permitted.

Spectators viii Not Be Permitted.
New York, November 19.--At the close OF
last week the big hnanciers In wall street
we're preparing for moderate rise in
stocks 50 as to work OF their holdings be-
fore Congress meets to discuss methods to
control trusts. Word has been passed
along the line that Messrs. Morgan and
Rockefeller would mark up their specialties
a little and would do what they could TO
make money conditions easy for the next
two or three weeks. But suddenly all OF
their plans were changed and they ceased
stock market operations. What happened 7
IL leaked out today that warning came
from Secretary Shaw that no expansion OF
bank loans would be tolerated and that n
any attempt wera made 20 put up stocks
he would feel called upon to withdraw some
Of the government deposits In the banks Ia
order TO give the treasury department more
working capital. he gave the banks to IN.
aertsanad that the department is cramp.
Ing Itself more than usual in order to help
the money market, but nc will not continue
70 do 80 II they arc going to take adyan.
Of accommodating lot OF spectators. The
treasury department, as n rule. wants at
least s60,00o,0Oo cash in It's vaults for or
1lnary requirements, but the balance Is now
down considerably below that amount and
November receipts do not promise to In
crease the cash on hand materially.
This warning OF Secretary Shaw did not
come, as a recent one did, through one Of
his chief assistants, but Il was admins
tered BY the secretary himself during a
quiet visit TO New York several days ago.
Tue leading bankers thereupon ordered
brakes down OH uloag the line ana most
Of the week stocks have auctuated In
desultory sort vi 81 way, many OF them
declining sharply nj times under Nquld6tlngp
sales Maniiestiy' by Withdrawing eyenS
very small part Of the SilZ, 100000 of gov
eminent money In he National banks as
he has perfect right TO do, without his
motives being impugned, Secretary Shaw
could start slump In stocks any day. The
question Is now asked whether the market
leaders VIII be able to put M stocks at
all before there Is an thrush OF currency
from the Interior. The opinion here is that
the return Cow Of money between now aud
January ! will not be very large but that
active business in the various sections viii
absorb q good deal OF the money released
after the marketing OF the crops.
But aside from money market considera
tons It win require very favorable condl-
lions to render any further upward move
meut In stocks before January practicable.
The foreign trade situation and settlement
Of our obligations abroad may, on the one
hand, develop unfRvorRblc symptoms, while
on the other, aggravation OF the differences
between important interests such as Gould
and Hartman will serve to unsettle thlnga
still further and prevent some Of tho prln-
cipal stocks from going up-8. in fact,
throwing over OF stocks does not cause
sharp reeessions, The loanlng out OF 49,.
100000 by Kuhn, Loeb * Co.. a few days
ago on time among the brokers, to make Il
appear that there need be no fear about
scarcity OF funds aud Inability OF borrowers
10 get accommodations from the New York
banks was q clever ruse, but II should de-
celve nobody. The Kuhn, Loeb & 90.
money was not foreign money at ALL as
alleged, but merely some OF tne!r own re.
sources which they had with the banks.
The other so-cailed loans by foreign hrms
were not new supplies OF money but rep.
resented deposits In the local banks. Con
scquently, they did not mean any addition
20 the supply OF cash, and having been
loaned out this decreased the available
FUNDS or the banks by JUST the amount put
out by the foreign irms,
Vow what was THEN purpose In putting
TINS money out on sxty-dHy timeY They
assumed that before the end OF the yenr
(which rs the tine when the New York
institutions need the money for the heavy
January disbursements OF interest aud
dNldendAl, they would be able TO secure
commercial bills enough Ia cover the
amount OF the loans mentioned, They
were also counting on a liberal return OF
currency from the country with which 60
mike up for the cash which had been re.
leased III connection with fhe lonns mon.
TONED II the cash did not come IN from
The outside tho local banks would be
pinched for funds to the extent of the
loans made by the foreign firms to brok-
ets, SO the situation would have bcen
Just as bad as u the banks had themselves
made the loans. which they refused to do
Ihe commercial bills, OF course, are all
right for exchange purposes. but they do
not make additional cash FOR Temporary
The fact is that the cash re-
sources OF the bnnks are very low and
those institutions can not Mt the moment
spare anything at all FOR stock market pur"
poses, unless they receive practical guar
ahtse that new money win pour IN to take
lts place. Kuhu, Loeb & co. are greatly
interested in Union Pacific and other stocks
ana naturally want 10 encourage the mar
ict. but their plans have been upset FOR the
llne being by the warning from Secretary
Shaw above noted
GoULD-HARRIAfAN FEuD.
~ IMPRESSION created In Wall street
mat the Gould-Harrlman feud arose out OF
me dispute over Colorado Fuel proxlea is
wide Of the mark These two anapeiers
have been at odds for weeks and Mr. Gould
has simply been looking around for trouble
Z what hear is true. Gould has hcen
planning at outlet for his Missouri Pac,ec |
system TO the Pacific coast independent n, |
y Union Pacific Of which Tnrrir,o, - !
ne principal factor, and has been ou,ct,y /
'onferring with Senator Clark for the nae
= the latter's' projected new line between
salt Lake City and Los Angeles. Goulo,s
purpose in buying the Denver and no
irande was ultimately 20 put this plan into
Meet. His interest In the Rio grando
Western gives him an entrance into sail
AXE City for the Missouri pacine sy.,.,n
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