The Birmingham age-herald., 1903-11-02
STOCK MARKET
 FACES ENIGMA Bank Statement Shows De- crease of S0,O94.8OO TRADERS BADLY PUZZLED Close of the Market Was Steady, But Very Dull and With the Advancing Tendency checked-Discrep-
 aney May Be Adjusted.

New York. October 9i.-Todays bank statement proved to be the usual enigma of stock market observers. The statement reports a decrease in cash of S,694,0OO. There are a number of estimates com piled every Friday of the weeks cur rency from the bank officials themselves. Yesterday none of these estimates, re- garded as reliable, showed cash out go for the week of less than 3,0OO,OOO, and some of them ran to over s15.0OOOOO. Last Saturday the bank statement in it's item of cash reserves failed to show the estimated decrease by OO0 Under the workings of the average system last weeks discrepancy would tend to be cor- rected in this weeks statement. The con- clusion is unavoidable that the actual showing of the cash reserve item in the bank statement, if 1t correctly repre- sents the actual condition of the banks, must be based upon money movements not disclosed to the public in the informal tion upon which the Friday estimates are based Todays statement failed to have convincing effect in stock market circles, and very languid upward movement Of prices resulted. This was partly due to the fact that a sceptical feeling was felt yesterday as to whether the formidable decrease in cash would be in fact reflect ed in today's bank statement.
 There is a belief that the discrepancy in the bank statement may be adjusted by cash operations between the banks and trust companies which do not appear Tn the reports of currency movements. The increase in loans, which reached $4, 4O9 300, was not unexpected, and is attributed to preparations for November 1 settlements, and to borrowings by western institutions, in connection with their large cash with drawals.
 The close was steady but very dull, and with the advancing tendency checked.
 The Tightening money market this week has had a repressive influence on the stock market, and has had some enect also in checking the growing tendency or the bond market, which had begun to reach notable proportions.
 Following the bank and trust company failures at Baltimore and Pittsburg last week came the news of run on the St. Louis trust companies by certain classes of their depositors, and the enforcement of the sixty-days' notice of withdrawai
 
 The development for the regular west ern crop moving requirement has demon- strated that the seasons needs for that purpose must be met from New fork as usual, and has disproved the expecta- ton that the western resources would be sufficient to meet the requirements which has been maintained in some quar- ters The indulgence of that expectation last fall proved too costly to large tn, 1,a ctr market and the memory of last falls experiences begets a spirit of caution. The spirit of distrust of banking institutions re- vealed by the St. Louis episode has in- duced a conservatism in the banking world in general and a disposition to conserve reserves. The effect of these factors has been rise in the local rates for both money on call and on time, put the further effect has been a precipitate break in the rates of foreign exchange to near the gold import point which has spread the pressure of the situation into foreign markets. Foreigners have been heavy buyers of cotton during the week, impressed with the fear of the formation of another corner in our cotton market The outgo of wheat and corn has also expanded The rise in legal money rates has checked the demand for exchange to cover previous sales, which has hitherto steadily absorbed the supply of commer- cial bills as fast as they came Into the market As the current demand for gold on the continent Is keen, the final out come of the exchange situation is not certain, although 1t seems that the New York money market has clearly the con trol of the exchange situation, with power to secure relief by gold imports at demand.
 The purchase of bonds of subsidiary companies of the Pennsylvania system was the event of the bond market for the week, and was regarded as evidence of the renewed demand for bonds
 United tSates 2s advanced l4 and the 9s and old 4s F per cent over the closing call of last week.