New-York tribune., 1904-09-18
BONDS.
STOCK MARKET OPERATIONS.

Stock trading developed considerable activity
IN the opening dealings. but in the subsequent
operations there was a material falling of in the
volume OF business. the market presenting q
greater appearance Of dulness than recorded in
many days. After the publication OF the bank
statement there was a moderate increase in
business. although the transactions were not
heavy enough to bring about important changes
an quotations. which generally showed small net
losses at the close. The general course Of values
was unsatisfactory from bull point OF view.
prices failing to respond TO a material degree TO
the early efforts OF the professional element to
bring about a higher range OF quotations
Atchison. Ontario and Western. Reading. the
Steel issues and United States Leather common
were strong features for a brief period. while
Union and Southern Pacific and Pennsylvania
were weak throughout the two hours Of busi
ness. An attempt was made TO galvanize
United States Leather and Standard Rope and
Twine into life and evidence OF activity in these
issues created the impression in some quarters
that the bull boom was on its last legs. as the
end OF the bull campaigns in the past have gen.
orally been marked by efforts TO place the eats
and dogs of the Street at higher valuation.
Leather common and Standard Rope and Twine
appear 10 be among the most hopeless Of the in
dustrial issues. as far investment return is
concerned. Ieaviness in the Hartman stocks
created an unfavorable impression, and senti-
Enent became more bearish on Southern Pacific,
following the publication Of the company's re-
port OF earnings for the month Of July, showing
a large reduction in gross receipts. The falling
of In gross earnings amounted TO over SJOO.OOO,
comparison being made with the same month
last year, but the decline IN net earnings was
kept under $4,000. owing to a large contraction
in operating expenHes. Surplus after charges
showed a decline OF S79.136.
la he fa1 off In haD a
reported in the weekly statement of the associ-
ated banks, failed to induce active selling
movement in securities. IT created, nevertheless.
an unfavorable impression in speculative circles.
and brought the Street to a nearer realization OF
the fact that indications point strongly in the
direction of higher rates for money. The de-
cline in cash holdings amounted to SS,4G0, 500,
making falling of in the last three weeks in
this item OF So. 10000. Loans increased S1O.-
4726O0, making an expansion in this account
since September / of SAL 9O1, 900. AS a result of
all changes, reserve above legal requirements
declined S9Os5 100 TO S29. .353, 40, which COM
pares with S13 Ia, ,625 in the corresponding week
in 1903 and deficit Of $1.642. $50 in the same
week in 1902. Bank loans now stand at the
enormous total OF 81. .14O.95S.SOO. an increase Of
S21S9O3OOO as compared with this period a year
ago. In the same time cash holdings have in
creased S94.S606OO. while deposits have IN
1885. .404. 500. and the required against
deposits is 5000. .O51. $50. bankers consider the
present condition OF the banks eminently salts
factory despite the uneasiness which is ex-
pressed in some quarters over the enormous ex-
pansion in the loan account 1t is interesting TO
note that the loans OF the New-York City banks
tacluded in the Clearing House Association
amount TO a sum which is nearly One-half OF the
entire amount Of money in circulation in this
country.
Bank returns OF the New-York banks to the
Controller OF the Currency under the call of Sep
tember show that the city institutions owe to
other financial institutions on deposit account
S46.cOOOoO more than they owed three months
ago and S15400000O more than they owed last
September. Trust company deposits account for
part OF this Increase while the balance which is
due to deposits for the account Of interior IN
stitutions. VIII be recalled for harvest time pur-
poses. The bank statement for the last week
shows that whatever reduction in loans was
made by the liquidation in stocks In the first
two days IN the week was more than Offset by
the subsequent bull speculation. The current
leaders in the stock market are strong hnan-
cially and have at their command at easy rates
of money large amount OF financial backing,
but Il is possible 10 see how their operations
may be checked through the means OF the money
market II rates in quotations for loans should
advance Furious bull speculation. It may be
recalled. took place two years ago. when bank
reserves were rapidly declining under the in
nuence OF interior Withdrawals and loan expan-
sion At that time the market leaders pre-
o!cted the continuation OF the advance despite
bank conditions. but the end came before the
last week IN September. and as the character Of
The present market leaders Is similar 20 that Of
the leaders Of two years ago. and as current
money and speculative conditions duplicate in a
measure those OF 1902. some people believe that
breakdown in the bull campaign will soon de-
velop.