The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-18
FINANCIAL AND cOMMERCIAL
FRIDAY, March /


Greater general weakness was shown
In the stock market to-day than on any
previous occasion In the year. which IL,
Of course, not saying a great deal. e. de-
cllnes up 70 the present time have been
but trhing. Such reactions In prices ~
have occurred since Jan. l have. however,
been usually tnceable to an explicit cause
or have In Stock Exchange gossip az least
been attributed TO the work Of some specific
factor. To-day there were no such Eek
plantations current. The market fell from
sheer weight OF selling, which eeemed TO be
due both to liquidation Of holdings and to
the work Of speculators for the fall; the
obvious fact being that sellers Of stocks,
however classified. were in the majority
There was, Il II true, a rumor Of a failure
Of some importance in the Paris market,
| but very little attention was paid TO the
story, and il became known long before
! the close OF business that the supposed
embarrassment In Paris was a most minor
trouble. II was also generally understood.
as 1t has been throughout the week, that
owing 10 the losses sustained by the
banks by their payments into the Treasury
under the Governments call for public
funds, to-morrow's bank statement was
likely 10 make a poor showing. The banks
have, indeed. according to the preliminary
estimates, lost about tl2,OOOOOO on net
balance since last Friday. and although IL
Is believed that trust companies and private
lenders have put out money very freely
which has had the presumable effect OF
reducing the bank loan account, so that
a smaller proportion Of reserve will be
required by Clearing House institutions,
the probabilities are that the bank surplus
exhibited last Saturday has been dimin-
ished. Nevertheless, call money to-day
did not 20 as high as il did yesterday, and
in the late afternoon. when the selling OF
stocks was heaviest fell as low as per
cent. simple reason for to-day's fall
in prices may be suggested, and that Is
that the market Is or has been for some time
in what Wall Street calls an overbought
condition. A great speculation has been
In progress prices have been rapidly forced
up 70 a high point the short interest in the
market has been largely eliminated and
many buyers for the rise have made commit
,ments in excess Of those dictated by pru-
dence and by the size Of their pocketbooks.
Even sharper reactions than that which to-
day occurred are natural in the course Of
such a market, and Il has long been sur
prising 10 experienced observers OF financial
affairs that 80 few Of them have thus far
taken place. All the foreign markets were
ruled by a sagging tendency to-day, the
depression there seeming TO have its origin
in a fear that the Russian Government
means to prolong it's hopeless war with
Japan. The Paris market was especially
depressed. In London, however. enthusiasm
for the dse IN values has been distinctly
modified since the publication Of the English
bank return on Wednesday, which indi-
Gated that the upward movement in prices
there had drawn to an unexpected extent !
upon the banks surplus. Here too, no
doubt, the growth Of a conservative spirit |
has been stimulated recently by consider |
alton Of possible developments in the money !
market in the next month OF six weeks. !
The reserves Of our Clearing House insti- |
tutions are now relatively at a low point |
for this season Of Che year. 1t is apparent !
that the movement Of funds west ward for |
crop planting needs has only just begun,
as analysis Of the losses Of cash by the |
banks during the week shows that for the
first time this season shipments Of money
TO the interior Of the country are consider |
ably in excess Of receipts therefrom. In |
view OF the high range Of market prices |
and the large quantity Of money required |
to carry stocks, there were bankers to- !
day OF the most eminent class who did not !
hesitate to predict per cent. call money |
rate some time within the next month, with |
a hardening also Of rates for the use Of
time funds. This is a somewhat different
estimate than Wall Street has lately been
accustomed TO hear.
Prices Of stocks to-day at the opening
OF the market were as a rule at a lower
level than they closed yesterday, for which
the weak undertone displayed in London
and Paris and sales made here for foreign
account we're held responsible. After this
and for quite a time during the morning
hours the market hardened and there was
renewed bidding up Of a few specialties.
The American Smelling and Refining COM
mon shares continued their extraordinary
rise. All the local traction stocks were
again strong, as they were particularly
yesterday, but as accounting for the move
ment in this group rumor had nothing
more to offer other than a repetition Of
the story that IL was possible that the
Metropolitan Street Railway interest might
acquire control Of one or more Of the new
subway tunnels that are to be built in the
city After midday business became very
dull and then finally prices weakened
under large offerings Of all the lead
ing stocks from commission houses, room
traders and brokers believed to represent
many Of the pools which have been 90
long operating in the market. The decline
was broken by rally in the last half hour
but prices again succumbed under a re-
neWal Of selling orders, 30 that closing
quotations were BIT little above the lowest.