Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-01
NEW YORK, September so.-The weekly

the statement itself appeared. Prices ad-
vanced accordingly and while some hesita-
tion developed in the closing tone last prices
were near the best. The weekly bank state
ment has been subject to criticism for
long time as an inadequate showing of the
actual condition of the banks. principally
on account of the operation of the system
of computation by daily averages. But the
skeptic;sm which found expression over to-
days statement was unusually frank and
general, owing to the extreme variation
from the estimated result.
The known movements of money for the
week promised decline In the cash reserve
of upward of $6.0O0.0O0. The bank state
ment, on the contrary. indicates an increase
OF 81 ,322 800. The extraordinary require
ments of the week for syndicate payments
quarterly settlements and the New York
tax payments to be made Monday prom
ised an unusually heavy demand for credits
The loan item of the bank statement, on
the contrary show contraction of 81 80,
800 The net result is to expand the mar
gin of the surplus by S2,204.y7
Experts Puzzled.
Expert authorities are entirely at a loss
to find any explanation for these discrep-
ancies. In the matter OF the cash item it
is suggested that the gold engagements for
import may have been made to figure in
that item upon the supply being secured
abroad without waiting for the receipt OF
the actual metal 1t is said that this Is the
custom of the Bank of France and some
other foreign banks. Last nights steamer
from England brought 100000 In gold
which would not figure normally in the
bank statement until next week Confusion
in the loan item after great transactions is
explainable when the period of settlement
comes In the middle of the week, owing to
the working of the average system, but
with the settlement coming at the end of
week frIll eff Of ha loa IN
operation would be expected to be reflected
In the bank statement
Inc speculative operators in stocks ac-
copied the statement at its face value
feellng among them was confident also that
the maximum effect of the October first
settlements was shown in yesterdays money
market and that easier conditions would
follow next week. The heavy adjustments
being made were reflected in the days rec
ORD clearing house balances, which amount
ed TO 399o, 103, exceeding the greatest
previous record by more than So 600 600
nesteroay increase In the railway steel
spring dividend stimulated a number of
low priced industrials. The principal move
ment otherwise was that in the Reading
stocks
Total sales Of bonds, par value, s., las, COO
Dealings in Stocks Shrink.
Inc volume of dealings in stocks this
week has shown progressive shrinkage
from day to day under the constraining in
huence of diminishing supplies In the money
market. a moderate effect was produced
on prices, but the decline was not steadily
pursued and strength from time to time In
special stocks served as sustaining in
huence on the general list. The factors In
the money market were so accurately
known and the effects so clearly foreseen
that there has seemed no room for ignoring
them and their development has not UNI
covered any weak position up to this time
The feeling has been prevalent that the
special demands being met this week in
the money market were of a kind which
would be temporary in their effect and the
nope has been held that the supplies ac-
cumulated for meeting great syndicate
transactions would flow back quickly into
the money market with the conclusion of
those transactions. The payment of sub
Scrlptfons to the Pennsylvania and Atchison
convertible bond issues have been the spe-
cial operations making the largest demands
which are TO be met today, and an extern
sive shifting of loans has gone on during
the week In preparation for these payments
and for the October 1st quarterly settle
ments, which are unusually large.
Money Rates Raised.
Aside from these special requirements,
the demands upon bank reserves have con-
tinued large. with every prospect of per-
sisting for some time. The course of money
rates has been upward throughout the
worlds money centers, and some further
large credit requirements are to be met by
the New York money market In the imme-
date future. The future of the money
market is therefore by no means clear. The
admonition to caution in the use of credits
in stock market speculation was a force
that had to be needed and was effective
with the rise in money rates to the highest
level of the season.
The advance of a full 1 per cent in the
Bank of England official discount rate to
a q X
age of banking resources and of the neces-
sity for retrenchment. That rate has not
been touched by the Bank of England be-
fore for over two years, and has only been
exceeded a few times in many years past
in periods of special stress. That inst;tu-
TONS proportion of reserve to liabilities
has fallen to near the 40 per cent which is
additionally regarded as the minimum
point of safety. A policy of recuperation
is thus clearly foreshadowed, which had its
immediate effect on the continental ex-
changes on London.
Arrivals of Gold.
The problem of New Yorks ability to
draw further gold from Europe for it's own
relief is thus made Immediately prominent
Parcels of gold engaged last week In Lon
don have arrived from time to time and
have gone into New York bank reserves
and additional 81 10000 was secured
early in the week to arrive next week The
forthcoming Russian loan has come up for
renewed consideration, and reports from
abroad have stated the intended amount to
be xl15.0O0,OOO TO be apportoned to Paris
and Berlin. 1t is the general expectation
that there will be a New York PARTICIPATION
In the subscriptions also.
Foreign exchange rates in New York went
higher under the influence of hardening
foreign money markets. Some of the de-
mand for exchange was attributed to a de-
mand from short interests to cover sales
made against earlier borrowings abroad
and against the imports of gold. There
has been complaint of scarcity of grain and
cotton bills. foreign demand for cotton hav-
Ing been curtailed by the speculative level
to which the price of that commodity Eas
been lifted. The break in the cotton mar
ket after the middle of the week brought
some revival of foreign buying and the
foreign exchange rate was affected by that
and the rise in our money rate.
Absorbed by the Subtreasury.
The subtreasury is taking very large
sums from the New York money market.
principally In the form of customs pay
ments, which the large Importation OF
merchandise makes unusually heavy. The
resumption of government refunding opera
lions announced on Wednesday Is calcu-
lated to offer only slight relief to the
drain OF revenue payments. Heavy cur
rency shipments from Chicago to ths agri-
ErI Ions haNV<