The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-09-28
GOOD BANK STATEMENT
GAVE LITTLE CONFIDENCE.
Stock Market Steadied Somewhat on
Efforts 10 Relieve Money Stringency
but Future ls Uncertain.

New York september 27.-'rhere was
very fevensh trading on the stock exchange
today. which seemed principally due to a
contest between speculative interests. rhe
operations which were responsible for yes
,erdays sharp upward movements We're
again in evidence at the opening, but the
high prices made attracted renewed heavy
liquidation. induced by misgvlngs that the
hank statement would fail to reveal the
recuperntlOn which was expected yesterday.
There was heavy break in prices In prog
ress when the Dank statement appeared,
showing surplus reserve re-established or
S323B. $50. The bull operators thereupon
turned upon their opponents and marked
UP prices "a 20 ] point at jump, so that
the level Of the market was set back to
near last nights level and in some cases
above RMS was followed by relapse
which carried some stocks lower than be
fore and made the closing feyerish and UNI
settled. Louisville suffered TO the extent
OF AZ In the late break, owing TO the un-
certainty whether the minority stockholders
are to be allowed to share In the terms
which II is reported win be offered for con
troll by the Atlantic Coast Line syndicate.
ST. Paul suffered an extreme loes Of over
4 points on account OF denials ny officials
Of published reports OF a proposed stock
subscription right. The dominant influence
WINS the money situation. The increase or
700 cash reserves or the banks was
total surprise In view OF an indicated de
crease Of about S4OOO,OuO On the other
hand, the loan contraction of SlSS62 800
was not as large as had been looked for.
The source Of the cash Increase was an
unexplained mystery. A sharp fractional
recovery In the sterling exchange market
unusual for Saturday carried rates wen
away from the gold import point. The
bank statement failed TO convince specu-
lators that the necessity for further loan
contraction has entirely passed.
LIQUIDATION WAS FORCED
Heavy liquidation OF securities has been
forced on the stock market this week by
the calling OF loans by the banks to make
up the deficiency in their reserves revealed
by last Saturdays bank statement. the
market steadled and recovered somewhat
in the latter part Of the week on the hope
that the loan contraction had been carried
as far as is Immediately necessary and
that the Otfer of the secretary of the treas
ury to pay now all the government interest
due for the remainder OF the fiscal year.
less a rebate OF "a per cent and to pur-
chase bonds would relieve the money strin-
gency. The stringency OF the money mar
ket was solely responsible for the weakness
OF stocks and this was In part due to large
requirements for currency and credits
which are an incident OF active business.
Ample warnings have been uttered by all
| competent authorities ON the conditions
| which have been preciptated this week,
and the lack OF sufficient resources to car
~ through the long speculative commit.
ments IL the market has been clearly fore
| seen without affecting. however, the con
| ndenco OF the speculative contingent that
means OF relief will be forthcoming rms
! contingent has claimed that the United
! States treasury viii be bound 70 arrord
! ample relief TO the money market; that a
rise in the money market would immediate
| ~ bring In gold OF that the supply OF
money In the country was already so great
| M
money 10 move crops would he remltted
| this year. The fact was ignored that all
! legal means Of returning government funds
to the money market require the security
| Of government bonds and that the nviIahle
| supply of government bonds has become so
| depleted that the banks are not able 10
increase their holdings for the purpose OF
! placing them with the, government as Sc
curlty
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