New-York tribune., 1905-11-20
MONEY AND BUSINESS,

Stringency In the money market produced
heavy liquidation of securities for time, and
the average of the sixty most active railway
stocks fell S4 O2 below the high record estab-
lished last month. At time. however, was
there the decentralization that has been conspic-
uous on previous occasions when call loans ruled
as high as 1S per cent on most new accommoda-
ton for two consecutive days The explanation
is obvious: most stocks were in strong hands that
had provided for such a complication by Dor
rowing whatever funds were needed on long
terms when rates were easy. Had there been
anv extensive long account carried by the gen
eraI public or small traders the pressure to real
;ze would have produced a break of 10 points or
more But the powerful interests in control or
the situation were able to check the decline,
and there was recovery of about half the loss.
Pool operations were resumed in various spe-
cialties several new issues being taken up by the
market manipulators Aside from the better
financial position both here and abroad, the only
development Of Importance was more disturb
ance in Russia Reports from the interior indi-
cate that the railways are handling freight more
promptly and incomplete figures of earnings
for the current month indicate gain of about
8 per cent over last years business.
AS might have been expected, money rates
rose to % per cent in exceptional cases, and on
two days the ruling rate was about Is per cent.
This was the highest position of recent years.
and also the first time since 1902 that the as
ISOLATED banks held no surplus reserve. For
time the pressure was severe, yet uneasi-
ness was felt, owing to the sharp decline IN
foreign exchange rates. indicating that gold
imports would soon relieve the situation II
necessary. Canadian banks sent large sums to
take advantage of the attractive rates, and
there was much foreign lending in the form of
finance bills Still more eficacious was the re-
duction of borrowing on Stock Exchange col
lateral many speculative holdings of securities
being thrown on the market. Had the strin-
gency affected legitimate business to any Sc
rious extent 1t is probable that the Secretary
of the Treasury would have released govern
nlent funds but he did not find it necessary to
increase deposits in the national banks. An
event of some importance the advance in
quotations Of silver bullion the highest point
since 190O offerings at London falling behind
the demand from the Far East. Regular oper-
ations OF the Treasury have continued to main
tain a close balance between receipts and ex-
penditures but gross stocks of gold each day at
tanned new high water marks.
Business conditions throughout the country
have maintained progress that is remarkable
in view of several events calculated to produce
a setback. Dealers in the anthracite region
operate very conservativey as to provision
for future requirements because of rumors that
a strike will occur, although the best author
ities appear confident that the meeting next
month will result in tact agreement to con-
tinue the present arrangement. Real estate
sales are enormous and building permits are be-
ing issued in excess of any previous year. High
prices of materials still tend to make pur-
chasers delay but in the majority Of cases
stocks have become far depleted and so
much difficulty has been experienced in secur-
ing prompt deliveries that there is a growing
disposition to provide for remote require