The San Francisco call., 1905-03-26
WEEKS EVENTS
AFFECT MARKET

NEW YORK, March 25-Some ten
dency 20 depression had to be contest
ed in to-day's market, and this was
effected by the large buying Of few
individual stocks, notably Ontario and
Western, which was rushed up in the
nnals dealings TO 63Ss. This did not pre-
vent an irregular tone for the closing
, Union Pacific was rather heavy
throughout. rising only a small frac-
ton over last night at any time, and
this had sentimental influence on the
whole market New York Central was
another strong feature. and il was sup
posed to be associated with Ontario
and Western. A number Of the indus
trials made advances. London's dis
position TO take profits was the man
factor in the heavy tone of the first
hour and after this influence was over
come there was another reaction due
TO apprehension Of an unfaVorable
bank statement.
The SlS000,0 600 loan contracted dis
closed by the statement helped to ef-
feet such q reduction in deposits as TO
relieve the reserve requirement to the
extent Of nearly $1,000 600, so that in
spite Of the loss in cash Of S4,61S 900,
. which was considerably in excess of
expectation, the margin of the surplus
was expanded TO the extent OF ST.
625,l50. The events Of the week afford
ground for confidence that even with
fFuther loan contraction by the banks
b resources will be found in the foreign
exchange markets and in trust COM
pany offerings to meet loan require
noents
It Is suggested that the present heavy
outward movement to foreign markets
OF securities represents holdings accu-
mulated in the early stage of the mar
ket advance by foreigners and which
have been held since with the pro-
ceeds OF loans IN this market The
loans are now being paid off and the
securities taken abroad to be held in
cheaper foreign markets. 1t is said by
authorities In the exchange market that
this process Of delayed payment on
foreign purchases OF securities Is the
principal factor in the present sharp
downward tendency IN the price Of for
eign exchange. London discounts hard
ened to-day and the sterling rate de-
clined at Berlin.
Total sales OF bonds, par value, ST.
B5o. 900.
Stocks have been freely liquidated
during the past week and the decline
IN prices, which wes extended by the
mznipulative efforts OF the bears.
caused the uncovering Of stop-loss or
oerS and forced offerings up on the
market by impairment of margins. The
price level was considerably lowered at
times, but the haste with which the
bears covered their short contracts
helped 70 restore q part OF the losses
The reaction was regarded with com
placence as normal after the extent to
which these previous rises had run
continuously and the shaking out of
weak accounts. held for purely specu-
lative purposes, was felt to add to the
health and soundness Of the market
The rectihcation OF some Of the ex-
cesses in the price level which had re-
suited from the unbridled enthusiasm
OF the speculative temper on the ad-
vance was accomplished with satisfac-
ton.
quieting for stocks at this season
OF the year ie, according TO precedent,
owing principally TO the reasonable de-
mands on the New York money market
for the spring requirements OF the in
terror trade. Reserves which have been
accumulated IN New York banks and
which have been placed on call for use
IN the stock market TO avoid keeping
them idle and improbable in bank de-
posits are sure 10 be reduced and
placed IN active use In the currents of
trade.