The Washington times., 1902-10-19
Spectators Skeptioal of
Banks Power to Restrict
Operations-Bank State
ment Favorable.
Soft Coal Roads Continue
Favorable-The Advance
Checked by Usual Profit
Taking in the Last Hour.

NEW YORK, Oct. 1S.-Speculative en-
thusiasm in Wall Street over the bon
purchases by Secretary Shaw was una
bated today. There was. it is true. SOM
small apprehension that the releases
hands of large capitalists, who have OF
hand great syndicate flotations, and tina
the money might not be found available
after all. for the use of the ordinar,
run of spectators. Ultra-conservativ,
bankers continue to look askance AZ tn,
transaction, commenting in nalf.
amused way at the explanation OF hi.
action given by the Secretary that he
found many Western banks largely be-
low their reserve and in need of cash
1t was suggested that perhaps these
banks were under some obligations te
put themselves in shape by the old
: fashionsd method of reducing loans, and
reference was had to that provision OF
the national bank act which, in effect
prohibits the further conduct of 5usi-
ness by any bank whose reserve is i'm
paired. 1t was recognized, on the other
hand, that this law had for long time
back been practically disregarded.
More Bonds to Be Offered.
1t seems probable today that more
than the s15,000,oo0 of bonds originally
: talked of will be offered to the Secre-
tary Of the Treasury and will be pur-
chased by him. There are also persist
ent rupors of large gold imports. for
which no basis can be obtained il the
usually authoritative quarters. Gold. if
it is brought over. will be brought at
a loss, and will simply mean more
money borrowed in Europe.
The operation is. however. not impos-
sible. So far as the checking of specu-
lation by the banks is concerned, opera
tors are in the main skeptical Of the
power of banks to accomplish this. The
belief of spectators is. therefore, that
the money slringency is over and the
way open for another advance in prices.
The theory may not be fiawless, but it
is the one that sways Wall Street Just
now.
The stock market today was steady
.sand strong Cntil the last half hour,
when prices sold down under the realfz-
ing sales customary at the end of the
week, and because of a sudden drop in
the Baltimore and Ohio shares, which
did not look SO much like liquidation
as an effort to depress the stock for
purpose.
The bank statement was favorable,
in foc cha IN,
a good sized reduction in loans, and a
consequent increase in surplus reserve.
1t is known that the financial condi-
tion here is better than indicated oy
the bank statement, as the reduction
of loans made by out town banks does
not figure in this statement. and yet has
been steadily going on; nor did the bank
statement OF today show in any degree,
o. course, the money paid out by the |
Treasury in the redemption of bonds |
The gross loans of the institutions rep
resented at the clearing house, however. |
still keep above gross deposits.
Bituminous Stocks Favorites.
The favorites in the days trading
were. and will probably continue to be.
the stocks of the soft coal roads. There
is no doubt that the chief owners of
these properties believe and have sub
stantial reason for the belief that the
net result of the coal strike will mean
q far greater consumption of soft coal in
this country in the future. and il is
likely that the recent advance in these
shares has the entire approval, If NOT
the direct support, Of the largest holders
Of them.
Norfolk and Western seems to have
had its rise for the moment. and Balti-
more and Ohio and PENNSYLVANIA are
now the stocks chiefly dealt in. The
recent increase in the gross earnings
Of these properties. due largely TO the
Increase of soft coal tonnage, illus
rates the basis of the movement. and
i is said on trustworthy authority tha
both roads are finding their present and
prospective business far greater than 3
heir facilities for handling it.
The general speculative feeling at the =
'lose of the market was that higher ,
prices would be seen next week through :
tut the security list.
Time money continues 10 relax, which r
6 an extremely favorable omen.
New York Stock EXCHANGE Octoha, %