The Savannah morning news., 1902-10-01
THE STREET ACTIVE
STOCK MARKET MAKES A sENsA-
TIONAL RECOVERY.
CHIEF CAUSES OF REVERSAL.
WERE SECRETARY sHAW's NOTICE
EASING THE BANKS.

And the Persistent Reports THAT
the Coal strike Had Reached a
Point Where Negotiations for "a
Settlement Were Actually Under
Wny-On Floor of the stock EN-
change the Greatest Excitement
Prevailed During the First Hour
with Bull Faction In Absolute
Control.
New York, Sept 80. The stock mar
ket, which closed utterly demoralized
yesterday as a result of the stringent
monetary conditions and other unfav-
orable circumstances. made a sensa-
tional recovery to-day. The chief
causes for the complete reversal were
the action of the Secretary of the
! Treasury in removing the restraint on
bank reserves and persistent reports
from various quarters that the coal
strike had at last reached the point
where negotiations for a settlement
were actually under way. For this
last rumor there appeared to be little
or no foundation according to the in
dividual and collective statements of
the leading operators made after the
regular weekly meeting.
Another influence for better prices
was the decline in cali money rates.
! though during the morning loans were
made as high as 10 per cent. A large
| part of the days loans was made at
around 10 per cent, and the rate at the
close went down to 2. but this was real
ly nominal. no money being placed at
that figure.
Opening prices were better all the
way from a fraction to points. Wide
openings In which blocks OF 1000 g.
600 and 5000 shares changed hands,
were numerous. The greatest gains
were in the standard railway shares.
| notably St Paul, Louisville and Nash
Vile (Which bore the brunt of the pre-
| vious days pounding); Missouri Pacif-
| ic, Union Pacific, the coalers and q
| number Of specialties
On the floor of the Stock Exchange
the greatest excitement and activity
prevailed during the first hour. Brok-
ers on the short side We're covering
with all possible speed and the bull
faction was in absolute control. The
list manifested a vacillating tendency
soon after the first bulge. and many
of the active stocks whose initial gains
had been largest receded from / to 3
points.
The opening rate for call money was
IL per cent, but soon advanced to Is,
creating general confusion among
those committed 10 higher prices.
The more sensational features OF the
market developed In the early after
noon on news from Washington intf-
mating that the President and his cab
met had taken steps to terminate the
cf ri In ef1ifa If ba al. -
any confirmation. the market seized
upon this announcement. and with the
coal stocks In the lead. the entire list
shot upward. The market developed
a bouyant tone In the last hour, though
| operations were confined largely to the
coalers, which were heavily traded in
| and closed at practically best prices
after the day. The days operations
were in excess of 100000 shares.
Secretary Shaws visit to the street
and his talks with the leading banking
| interests helped in no small measure
to restore confidence. Local banks
| leaned moderately.
Secretary Shaw gave out the follow
| ing statement to-day:
The department Is in receipts of a
large number of requests from various
/ parts of the country clearly showing
| that the statement given out last night
| was misunderstood, or rather that 1t
| was not carefully read. That there
may be no misunderstanding, the fol-
| lowing statement is made:
| mo new deposits will be made on
any security other than government
| bonds so long as government bonds
can be secured For the present,
| banks seem to be able to obtain, fire.
| quently by borrowing bonds other than
per cent. consols. They can obtain
! these bonds for o limited period. and
they are as desirable as any for Sc
curity for deposits. They are not as de-
sirable as security for circulation, for
the reason that circulation based
thereon is taxable at / per cent, while
circulation based on the 2 per cent
consols is taxable at only one-half of
! per cent. The banks cannot obtain
except by purchase any bonds as a ba-
sis for circulation because when de-
posted for circulation they cannot be
released until the circulation is retired.
and ii might take year before the cir
culation can be retired, and the price
Of bonds is so high that bank circula
tion is maintained at considerable loss
to the banks. They must be encourage
ed or circulation constantly con-
tracts. Therefore, the department
has decided to release for fsuca
banks as have deposits, and
are not maintaining their limit Of cir
culation, portion of the bonds now
held by the government. taking in lieu
thereof other satisfactory security, on
condition always that the bonds re-
leased will be used for the Immediate
issue of additional circulation. This
provision does not apply tofthose banks
that already have their maximum cir
culation, neither does it Apply to banks
that do not have any deposits. The
sole purpose of the offet is to increase
circulation that is already printed and
ready to be issued, and by banks that
already have the bonds on deposit
These deposits being scattered through
out the entire county, the relief Offer
ed, It is believed will be national.
rather than local, for it applies to ali
sections of the country, and to every
state in the Union"
Presidents Condition satisfactory.