The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-09-03
FINANCIAL AND COMMERCIAL
SATURDAY, Sept. 2

SATURDAY, Sept. z.
All the activity thc.s wa' in the stock
mGrict to-day WIS., coa6le to tho hall
hour se5a!on following the appearance OF
the wesley bank sslton ont, and was oven
then not noteworthy. Tho small NUMBER
of prorc Jsioaal spectators wao' are now
acoustome 70 roMlin Ira town during tho
saturday half o!ilay wore naturally dis
inclined to make comn'tmeats until the
bank return threw some light upon the much
DISGUISE state of the local financial posi-
ton. The bank statement when it appeared
was bound to balance correctly and to be
wholly in line with estimate, Of its character
which were made Yesterday from informa-
ton obtained by various calculators. The
cash loss Of the banks am ounte ! to 81 l03, 500,
deposits decreased $ii,4ossO and loans
e!,as71o,. Tho surplus, therefore. fell on
S3.47s3oo leaving the present surplus at
S6.49ss75 an exceedingly low reserve for
this time OF year and evinoing an enlarge
ment OF bank credit which when 1t has taken
place in times past In coincidence with
Q prospect Of withdrawal OF funds for any
particular purpose has invariably betokened
considerably higher rates for the use OF
money and often a period OF monetary
stringenoy. After the publication OF the
statement there was moderate recovery
IN prices, but at the small advances made
tho market visibly tended to dulness. The
American Smelling and Refining shares
were again feature Of weakness and pres
sure to sell the United States Steel stocks
appeared greater. relatively. than has
recently been the case. The peculiar
heaviness OF New York Central and st.
Paul was undated. London was buyer
Of stocks in a small way. The monthly
report OF copper statistics in London showed
Q large reduction in stocks.
The decline in the market during the
week has been, 1t seems, matter OF popu-
lar surprise, but it has not been unexpected
by close observers of the movement OF
prices, and particularly by those who have
been impressed by the reckless perform
anoes of certain speculative pools and
cliques In the last two or three weeks. 1t
became reasonably apparent that whether
from distrust Of the character OF market
In which such operations were conducted,
or from general unwillingness to buy
stocks at the prevailing high level of prices.
public support of values was lacking and
that the rise there was only sustained by
pure manipulative up-bidding. The grad
ually developing weakness Of the bank
position brought also abundant and legiti-
mate fears as to the approach of period
Of high money rates. The liquidation that
has gone on in the market in the last two
or three days would unquestionably have
occurred before the time that it did had
a. Cos bo laliaf hat ha
negotiations at Portsmouth would be sue
oessful and that this event would tend to
stimulate, il only for few hours, security
prices. When the expected result at Ports
mouth happened there was, after one after
Moons outburst of buying on the Stock
Exchange, rush to sell stocks for both
speculative accounts The future OF the
market appears to depend upon the height
to which money rates will rise during the
rest of the year, and this is a matter con-
corning which there is now going on much
investigation and more guesswork in specu-
lative circles On the face Of things, higher
rates appear to be predicated than seemed
probable few weeks ago. because the
movement Of money westward is larger
than was looked for, the remittance money
to Japan Of the proceeds OF her war loans
here Ia keeping sterling exchange strong,
thus working against gold imports. and the
intake Of money by the Government on
account of customs has been increased.
Nearly half of the loss sustained by the
hanks last week was borne into the
Sub-Treasury for customs duties. The
low state Of the Government funds also
precudes the idea that there can be any
relief for the situation by deposit Of public
money In the banks. On the other hand,
the factor Of greatest encouragement In
the matter is that the commission houses
arc In general at present carrying very
small lines OF stocks and that the rank and
flle Of them will probably not be neces-
sitous applicants at the banks for assistance
In case of money strain.