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


With the cessation Of buying for the jap
anese loan account the nrmer tendency of
the local money market and the consequent
extensive sales of finance bills by bankers
and the increase in the supply Of CONNER
clai bills foreign exchange continued in a
more violent manner the decline which
started In the previous week. Demand ster-
Ing n which closed last week. Friday. at
4.s6ka4S 6M. by a series of daily falls yes
terday reached the low level of 4.s54O,
though 1t closed at 49545a4S51x while sixty
day bills slumped from 4.S4Na4 8435 a week
ago to 4:S29Oa4 50 yesterday. representing q
11ac. on the pound
The advance in the Bank Of England's
minimum discount rate to per cent &C.
companied by a rise in the open market
rate. accounts for the heavier loss sustained
In long sterling than in short. Continental
exchange also exhibited marked weakness,
although the fall In francs and reIchsmarks
was proportionately less than In sterling.
Outside Of local developments the most i'm
portant feature Of the international none
tary situation was the advance Of the Bank
or England rate. The heavy drains of gold
which that institution has sustained for
Argentina, together with prospects of addi-
tional shipments to that country. as well
as the possibility Of being called upon to
send gold to Egypt and the unmistakable
indications that Paris and Berlin desire to
further add to their gold holdings to such
an extent as might menace the tranquility
of the London money market. were the
chief considerations which led to the ad-
probability OF gold imports C. Schumacher
and Co. say: THE question as to the price
Of exchange at which gold can be brought
from Europe Is very problematical we
mence before very long. We do not believe
In large imports at the present time. how
ever. as Europe will naturally raise its
price for gold and exchange will have to go
to extremely low rates here to obtain the
yellow metal in any large quantities"
A wave Of pessimism has carried stocks
in general decline several points below re-
cent quotations. While the reaction Is nat
ural after long period of advancing
prices, the excuses offered are not dednite
and well defined. The fear OF strain on
the money market. caused primarily by the
very factors which make prosperity ana
increased wealth. Is generally accepted as
the cause. Unusual requirements are e1-
pected for money to handle exceptionally
large crops, and more than ordinary de-
mands are being made for funds to meet
the needs OF expanding general business.
The fact that large crops exist and gen.
eral business IL expanding will In the end
accrue to the benefit of the stock marke.
although for the time these needs work
against the market for securities Added
to this Is the fear that a Russian loan will
be placed abroad in the near future, ere
ating demand on the French and Ger
man money markets. which. OF course,
would be reflected here. From information
al hand we believe no such loan will be
made this year.
The fundamental conditions Of the coun-
try are very favorable, and when the
money outlook Is clear must be effective.
Just when the aforementioned restraining
influences may be overcome by the factors
which make for the constructive side of the
market is not clear. Some professional
traders believe that the decline and the
consequent liquidation have not yet run
their course and that sales On rallies are
still the proper play That the cause does
not warrant the effect may be truthfully
said but Wall street does not deal so much
with what should be- as with what Is
The revival Of the discussion Of a possible
strike by the coal miners next spring. when
their present agreement expires. does not
help matters Their demand for eight
hours. the recognition Of their union and a
more uniform system of weighing are
worthy of consideration, particularly so as
the public pays the bill. The last increase
in wages brought Increased profits to the
companies interested.
With peace now prevailing throughout
the world. American securities are being
given q wider foreign market and will prob
ably be more highly regarded abroad.
Until the bull campaign can be resumed
1t requires conservative trading with
proper protection against the downward
swings Of the market, which may occur
from time to time. Buying on a scale down
will ultimately prove profitable.
Money considerations have dominated the
market throughout the past week, inducing
heavy sales on the part of professional op-
orators. Prices declined sharply. and STOP
loss orders were caught freely on the de-
cline. While the fundamental conditions
remained unchanged. the fact that stocks
had to a certain extent gone into weak
hands left the market open to attack, and
declining prices forced this weakly held
stock on the market. There was a feeling
of nervousness In the money markets Of the
entire world. A large Russian loan in the
immediate future, is said to be among the
possibilities of the situation, and II it is Of
fered at this time, when the New York
banks are losing nearly million dollars a
day to the interior. 1t Is not improbable that
we shall See sharp advances in money and
lower prices for securities.
One of the features of the past week has