The Birmingham age-herald., 1905-08-20
SPIRIT OF CAUTION
 IN STOCK MARKET
Decided DuIIness Characterised
 the Days Business
MONEY RATES HARDENING
Sews From Portsmouth and PossIbll Ity of Over Sunday Developments Added to Cautious DlsposI-
 ton of the Traders.

New York, August 1s--rhe decided dull ness of todays stock market was evl- dence of the spirit of caution developed in the minds of the operators by the re- actionary tendency developed yesterday. The hardening of the rates for money seems now imminent by reason of the inception of the movement of currency on large scale to the interior. The abund- ance of the crops to be moved and the very active conditions of business which are themselves the instruments of pros- perity, promise an extra requirement. on New York preserves
 The extent of this requirement can only be measured by its actual development and now that the demand has set in, 1t is likely to proceed steadily to the max ifnum. The rise in the rates for call money even without reaching the propor- tions of stringent market has an almost inevitable effect on borrowing for spec ulative purposes. Holders of stocks on margin at the present high level of prices are naturally solicitous therefore of the dtvelopssents of the immediate future. The bank statement reflected only small part of the decrease in cash reserves but the weeks activity in the stock market resulted in some expansion of the loan account so that the increase in the deposit item, increased the reserve requirements in proportion. The net result was a shrinkage of about $3,50O,000 in the sur plus of the hanks. The news from Ports mouth opened up the possibility of some important development in peace negotia tions during the Sunday interval and the great doubt as to what it's nature might be. added to the cautious disposition of the operators in the market. The closing of the London stock exchange substracted something from the usual activity of the market The small declines of the first hours were recovered after the appear ance of the bank statement, the small decrease In bank reserves as compared with the anticipation prompting the cov- ering of short contracts The closing tone was firm; total sales of bonds, par value s1, 1,400.00o.
 The satisfaction felt in existing con- ditions of business and in industry and the general confidence felt in the promise for future prosperity, have resulted this week in an appreciable growth of interest In the stock market and an increase of orders to buy securities from various new quarters, The volume of dealings has expanded materially and the course of prices generally has been upward. The margin or the increase Tn uealingS IS not to be accepted wholly for account of this new outside interest.
 The medium thus offered for successful trading in and out of the market has been taken advantage of by the profess sional element to extend their operations and there has been much manipulation to further the purposes of traders in turn ing over their large commitments. One stock after another has been carried to a record price level and while many inn portant stocks remain far below the max imum prices for their whole history the average of the active list Is regarded as ruling at the high level of prices for sales recorded in this market. In the active leaders the manner in which the large selling to realize profits has been steadily absorbed. and prices aggressively ad- vanced, has served to impress fine specu- lative sentiment as a demonstration of