New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-02

There was much disappointment in Wall
Street yesterday over the failure Of the bank
statement to show reduction in loans. and
following the publication Of the figures the stock
market sold off, closing generally at the low
points OF the day. It was thought IN some
circles that the payment OF the pennsylvania
loan would cause a material curtailment IN the
loan item. while It was also thought that the
heavy liquidation in stocks OF the preceding
week might be reflected IN this weeks state
rnent Of Clearing House averages. The fact
that the liquidation IN stocks has not caused
decrease in loans may be accounted for by the
Inference that much Of the selling in stocks
represented speculative accounts carried by
financial institutions in the larger Western
cities and that the sales thus made went 10
local interests, who used the loan facilities Of
the New-York institutions to finance their
operations. Regarding the Pennsylvania loan.
Il must be remembered that large amount Of
money was provided for the subscriptions 10 the
Pennsylvania stock, and that the pay
rnent OF the $40 600 600 loan has doubtless can
ceIied loans made against the new issue Loans
increased last week 1894 500 against an in
crease IN the week before Of SSS42O0 but despite
this gain the expansion IN cash was heavy
enough to advance deposits for the first time in
many months to a level above loans and TO cause
an increase IN reserve above legal requirements
Of So, 144,6 75 to S24 060O75. In the bank loans
there are carried many items, such as the hold
tngs Of government bonds and other securities,
and the loan figures given in the Clearing
House statement do not, therefore, represent
that amount Of money actually in the hands Of
borrowers. The low rate for call money last
week caused considerable shifting of trust
company loans 10 the banks, as the trust com
panies found it more profitable to let their idle
balances remain in the banks where a better
return could be had than in the call money
market
There is no reason for uneasiness over the
expansion in bank loans. The position of the
banks is sound. and most institutions could
pay every dollar owing depositors from surplus
and capital without calling in any large pro-
portion Of their loans. People who are en-
deavoring to create alarm over the situation
among the banks are on a par with the men
who endeavor to d. tIrb confidence by the cir
culation Of lies about houses that are as sound
as the gold standard. 1t is most encouraging
to know that the governing committee OF the
Stock Exchange has been asked to investigate
the source of the recent and current rumors in
Wall Street affecting houses in good standing,
and it is TO be hoped that the manufacturers of
these lbellous reports will be round and brought
70 justice In the last week the Street has
suffered plague Of rumors, few of which have
been based on fact False rumOrS, however,
are generally the last card OF professional
manipulators, and the course of values last
week certainly showed that manipulation Of
this character rapidly losing its influence.
IN the early trading yesterday prices were
generally firm. but dealings were exceedingly
light and without especial feature. The only
news Of interest was the announcement from
St Paul that the decision in the case Of the
state Of Minnesota against the Northern Sc
curities Company had been handed down, and
was in favor Of the company. 1t the gen
eraI opinion, however. that the decision would
be OF little force IN view Of the fact that the
United States Supren Court is to pass on the
validity Of the company within the next few
months II proves, however that there are
some courts that are not convinced that the
Northern Securities Company Exists in viola
lion OF law. On the curb Northern Securities
stock was favorably affected by the decision
Total dealings amounted TO less than 10000
shares. with the heaviest operations in Atchf-
son, which closed at a small fractional lcgs
st. Paul, Mexican Central. which was the lead
ing strong feature. Rock Island Southern Pa
cihc and Union Pacific final prices showed
about even distribution of small net gains
and losses. American Car and Foundry stocks
on small dealings, were strong features: also
Consolidated Gas. Corn Products Pullman and
United States Leather preferred. Pullman stock
advanced points on purchases of 210 shares