Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-17

NEW YORK, September 16.-There was
q burst of animation with the closing oeai-
ings in stocks today, making the last prices
the highest of the week and at considerable
gains over last weeks closing. Tooay
market was very dull until after the APP
pearance of the bank statement, ana was
similar to its predecessors of the week In
being largely professional in its character
The undertone was strong throughout, as
confidence was strong that the banks wouio
manage to conserve their showing of sur
plus reserve by the shifting of loans TO
trust companies and other institutions as
was done last week The appearance OF
the bank statement justified this confidence
and was followed by the final outburst OF
demand which made the strong closing.
The loan reduction, while very heavy, was
only about two-thirds as large as the I'M
paralleled contraction effected last week
The decline in cash reserves was up to the
common expectations. Stock market COM
ment shifted to the prospect of further
gold imports next week as a relief from
the continued drain upon the bank reserves
by the subtreasury absorption and the
movement of funds to the interior. Re-
ports from London OF demands for golc
upon that center from other sources were
studied with interest bearing upon
the chances of securing for New York the
large shipments of gold moving to-
ward London from South Africa and Aus
tralia. OF special interest was the report
that Paris competing to secure some
part of these expected arrivals. If London
becomes hard pressed to maintain her gold
supply 1t is expected that the demand from
New York will be shifted from that center
to Paris. The special strength of Canadian
Pacific in the market due to report
10
pany's land holdings. Chesapeake and Ohio
reflected the strong showing of its annual
report. Some special demand also contin-
ued for the Wabash issues.
Total sales OF bonds. par value, 81, 100000:
The great general prosperity of the coun-
try has been balanced against the imme-
date exigencies of the money market as
factors for consideration in stock opera
tons this week. AS the prevailing condi-
ton of the money market, reflected in
the rates for loans has been tranquil, the
prosperity of the country has asserted its
influence TO allow prices to be lifted to a
higher level 1t is generally agreed that
the advance has been due largely to the
transactions of the professional class of
operators, these transactions including
tive manipulations, and the commission
houses have complained that the general
public holds aloof. Many brokers have adj
vised conservative courses to their clients
owing to the requirements to be met out of
the shrinking reserve resources of the
DaHhs. but the success attending EFFORTS
10 advance prices is evidence of the desire
of holders to cling to their stocks. except
as forced TO part with them by withdrawal
or requisite credits. That these credits
have been forthcoming Is evidently due to
supplies from other sources than the clear
ing house banks. the need fer loan con-
traction on their part has been clearly in
diCated by the course of events during the
week The trust companies are known to
be taking over loans from the banks and
foreign money markets have extended cred
its to New York. 1t is supposed also that
some western institutions have placed loans
in Wall street. although the full current of
the movement OF currency TO the interior
has been maintained.
The absorption of funds by the subtreas-
ury before the middle of the week had
reached a sum in excess of the surplus re-
serve of the banks as 1t stood in last weeks
bank statement, and the interior movement
OF currency by express was also known TO
be running In favor of the interior by a
large balance. Time money rates hardened
but the cali Joan rate, which is the index of
the Shlftlng of credits employed in the stock
market was but slightly disturbed The
Inference OF a supply of credits from other
sources than the banks was therefore clear
~ warranted. This is a process which eff
fects no real contraction in the volume of
outstanding credits and which has its limt-
tatious. The obvious tendency of foreign
money markets also is to advance, as shown
by Mondays advance in the discount rate
of the Imperial Bank of Germany and the
rise in open market discounts in London
Paris and Berlin during the week The en-
gaGement on Tuesday of 81 200 600 of South
African gold in London for shipment to
New York was of great sentimental effect
in relieving the anxiety caused by this state
OF affairs. 1t was accepted pointing to a
source OF relief from the drain on bank
reserves toward our domestic interior and
the later advance In prices of stocks was
accompanied by constant rumors of further
large engagements of gold for import and
by the subsistence of the fears that the de-
mands upon foreign markets for credits for
the Hoatlng Of large government loans would
preclude drafts by New York upon foreign
money reserves to meet our crop-moving
demands. The statistics of this country's
foreign trade for August gave comfort to
the assumption that sufficient credits were
established abroad to enable the New York
money market to command additional re-
sources for employment at home The
excess value of exports for that month
Growth In Manufacturing Exports.
The excess value of exports for that
month rose S17,200,OOO over that shown in
August Of last year to S21, G27, 033 in spite
of a rise in value of imports of over IS. o00,-
coo for the same comparative periods Cot
ton exports figured largely in this result
But an Increase of 100000 in value of
exports of manufactures must also be al
lowed for. This growth in manufacturing
exports. 1t is expected. will be maintained.
The prospects for increase in exports of
owing to the favorable home harvests and
the reduction Of the expected available sup
ply from the Russian harvest.
Financial operations of the Russian and
japanese governments not to be dis
missed from consideration. japanese funds
on deposit in New York are an important
item IN banking resources and are subject
10 order for remittance abroad and are
reported to be In course OF actual remit
lance as opportunity offers There are in
dicauons giving rise TO an assumption also
that Russian loan when offered will have
an important participation in New York
Close consideration of thes many certi-
lying factors In the money market are nee
essary to understand the force of the in
Huence thus exerted in restraining the eff
feet OF the extraordinary promise of the
general situation.
The September crop report. which ap-
peared this week, Is regarded as fixing def
initely the yield of the grain crops which
now promise an unparalleled yield of corn
and a ToO,o0o.00O bushel crop of wheat.
Iron and steel men see promise of a market
for the coming year which will absorb a
not lpr he