Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-09-27
CONDITIONS.

ten in New York under datc OF sept.
2i, Henry Clews, the noted %financIer
says;
An expansion Of $i0,0o0,000 In loans
aud a contraction Of s2S,o0o,0 600 in
surplus reserve within the short
space of three weeks were quite SUI.
ficient to check speculative ardor IN
stocks. Notwithstanding the redundant
condition of the money market, At
tention vas further arrested by the
fact that the bulk Of this increase in
loans was due TO the borrowings for
speculative purposes by large finan-
cial interests before the usual season
al demands had fairly begun. These
latter demands are now making
themselves felt, large sums having
gone west and south, with prospects
OF increasing shipments for some
weeks TO come. The efflux of curren.
cy this season promises to be large.
Crops in the aggregate are above the
average, and so are prices: hence
plenty OF money will be required for
their financing. Western banks are
well supplied with funds and are not
likely TO be large borrowers in the
east; though withdrawal of their bal
ances In New York will tend to furth-
err diminish the latter's reserves. 1t
is evident, therefore, that the money
market has limitations and that the
reserves cannot long stand the rate
of depletion which has been going
on for the last few weeks. Money
rates are already growing firmer, and
it is quite probable that banking con
ditions will soon become a more i'm
portant factor in the situation than
the crops. The banks, however, are
still in good position and carrying a
reserve much above what is usual at
this season. so there is no immediate
reason for concern on this score. Yet
it should be remembered that the
loan account is not merely a record
breaker but is also over $3.50, 900 900
in excess Of the same time in 1902,
when both business and speculation
were more active than now. This
increase may be partly due to the
New York banks carrying loans
which had previously been placed in
Europe n elsewhere: but the fact re-
mains that the accumulation of idle
funds at this centre has provided
means for a large speculative move
t ment in stocks that would quickly
come to grief If it continued to grow
at its recent pace. Possibly the lead
ers Of the present movement have
provided themselves with sufficient
J means in advance, or the loan account
might diminish should they succeed
in selling any considerable amount OF
stocks; but in any case. and in spite
OF the reserve being large enough tc
prevent presev concern, the caution
airy signals are up and it would be
folly to ignore them too long.
The technical condition of the mar
ket is still good and IL anything bet.
ter than a week ago. A very consid.
cradle amount of realizing has taken
place which clarifies the situation and
payes the way for renewed buying on
the decline. At the same time the
big interests which backed the rise
have been able to market very little
stock, much of the trading during the
last W weeks being by nimble oper-
! ators and the public exceedingly wary
about absorbing the stocks which rich
holders want TO sci. at an advance.
For this reason the speculative situa-
ton has not been materially weaken
ed by r~ealizations, especially as the
bulk Of floating stocks are still held
by strong parties who are under the
necessity of keeping the market ac-
tive and strong to successfully dis
tribute their holdings. 4 rise of 10 to
so points would seem to amply dis
count all improvement arising from
fair crops and business recovery; yet
stocks are so well concentrated that
those who have the power can eaTly
mark them up, and the prevalent opIh-
ion is that another advance movement
viii be attempted as 500 as the reac-
ton which began Monday runs its
course. The comparative indiffer-
ence OF prices to bad news and the
support accorded on all declines prove
strong inside support and skillful ma
nipulation- We may consequently ex-
pect a good trading market for some
weeks TO come. possibly until the cleo
tons, which, If they exert any influ.