The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-21
FINANCIAL AND COMMERCIAL.
SATURDAY, May 20.

To tho existing in1ue noes that have
been regarded by spectators In the last
two or three days as those making Tor
lower pricee in the stock market was added
to-day the force Of an unexpectedly bad
bank statement; that Ia when superhclally
considered. The loans OF the Clearing
House institutions increased during the
weak. as shown by to-day's return. s20, Io9.-
900. and as cash decreased S4,75e coo.
falling on in the surplus reserve OF nearly
81. 800 900 was exhibited. The ioes IN casn
was considerably less than yesterdays
forecasts had indicated and testified 10 tho
fact that the inpour OF money here from
tho interior Of the country has been on
larger scale than all calculations have made
out. But the speculative element, declar-
inR that the increase in loans was start
ling feature, renewed their pressure upon
the market and forced prices doyn to q
level we'll under that Of yesterday 8 closing.
A little examination would Of course. have
amply demonstrated that the enlargement
OF the bank lean account was due to no
alarming or even unpleasant development.
In the middle of the week a call was sent
out bv the managers Of the syndicate
underwriting the recent issue by the Penn
sylvania Railroad Company of 500 900 900
OF 81, per cent. bonds upon the members
Of the syndicate for so per cent. OF the
sums due under their contract with the
company, the privilege being also OK
tended to the members Of the syndicate
OF making a payment in full OF their
obligations As the syndicate was called
10 take up 500 900 600 Of the bonds, the trans
fer Of a large amount Of money was thus
called for, and as many members OF the
syndicate chose to take advantage OF the
privilege Of making payment in full as de-
scribed, a sum heavily in excess OF the
minimum required under the call was, In
fact, turned over to the syndicate managers
The effect Of this shifting Of funds was
wholly reflected In to-day's bank state
ment and will be partially, although prob
ably not entirely. repaired in next's week
return. There have been, further. during
the week certain financial operations which
are vaguely referred to in important quar-
tere as an Exchange Of loans having
reference TO the New York, New Haven
and Hartford Railroad Company's pur-
chase of controlling interest in Ontario
and Western stock; and no one should DO
surprised il it will be found at little later
date that this weeks Exchange Of loans
has been caused by the entrance of the
New York Central and Hudson River Rail
road Company as a factor in the affair.
Aside from all this as an underlying and
perhaps continuing force in enlarging bank
loans. has been the shifting Of loans from
the trust companies to the banks owing to
the low rates for the use Of money, trans
action which IL Of the same character and
exists for the same reasons as the transfer
Of loans from the banks to the trust COM
Panies when money rates become high.
Thus. when carefully considered, there
was nothing rmtoward to-day in the bank
statement nor anything about 1t that az
forded any substantial occasion, much as
1t was used as pretext, for sales Of stocks
The London market was closed to-day, and
operations for London account here on
either side Of the market were small. But
SPECTATORS were still in pessimistic mood
and hammered the market from one end
OF the day to the other, increasing the
vigor OF their attacks after the publication
Of the bank statement in the manner de-
scribed. At the close nearly all the active
stocks showed fairly large losses. and some
Of these stocks have now made declines
Of from to points without a reaction OF
point. It seems needless to observe that
such a course must result, unless the flnan.
cial situation changes surprisingly for the
worse, IN such an oversold condition OF the
market as will lead to disastrous conse-
quenoes to those spectators who have been
30 freely and rashly operating for the fall
As our stock market this year was ex.
ceedingly active in the late winter months,
q time when dulness IL not actual lethargy-
IN market affairs is the accustomed rule,
90 our weather in the months of March
and April, usually the most disagreeable
months Of the year in the Northern sections
and two OF the most trying upon crops,
was mild and equable, while May. ordi-
narily balmy, has this year been cold and
rainy. at least in what is known as the
agricultural district. The weather this
month has not been at all bad, but it has
not been so good as that which preceded
It. and it has retarded. although in no ex-
treme degree. the growth Of the crops and
the conduct of general business 1t has
even, it seems. exercised lettering in
huence upon the iron trade since it has in
many instances stopped outside work on
buildings where iron construction was
being used. Crop damage stories incident
to the weather have been heard in the grain
market, and last Thursday they fairly
abounded there but these stories have
been immensely exaggerated. ard while
the general agricultural condition has de-
Perforated somewhat. the fall in condition
has not been such as to appreciably dimin-
ish the splendid crop prospect that pre-
vailed at the first CT the month Indeed
all this has been expected and is in the
natural order If things AS tie week
clcses SUMMER skies and higher temrera-
lures are spreading all over the country,
and the helpful effect CT this upon orc ps
and trade will, il it continues, soon be ap-
parent 1t should be remembered. too,
that the great amount Of moisture the
crops have received will stand them in
good stead later in the year ard that it is an
old adage in the grain trade that crops are
meyer ruined by too much rain. Interior
ence with the general progress Ct affairs
caused by the We. ther and the stories Of
letting up in the steel bu ,ine,s. formed the
chief stock mlrket influences OF the we W.
and 1t does seem rs il in the latter respect
mentioned pe'simism had gone to an ex-
IRENE The truth about the steel business
is that consumers of pig iron having salts
M,