Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-20
Market Opened at Substan-
tial Advances.
FAIRLY STEADY TONE
HEAVY LIQUIDATION STARTED
AFTER FIRST HOUR.
Market Then Underwent Radical
Reversal of Formulating Stocks
Take a Tumble.


Srsciii Dispatch to The Star.
NEW YORK. May a0.-This morning S
stock market opened at substantial adj
vances above yesterdays closing figures,
and during the first half hour of business
showed a fairly steady tone Some of the
more active issues, including United States
Steel common. advanced n full point above
yesterdays last sales. Before the close of
the first hour. however. heavy liquidation
again made its appearance. by reason of
which the market underwent radical re-
versal of form. in which practically all OF
the leading issues fell well below the low
est figures reported in yesterdays decline.
There was nothing at all that was novel
which could be adduCed in connection with
The varying swings in prices which took
place The London stock market was
closed today so there were no quotations
forwarded for American stocks from that
point. The local dealings presented, how
ever. some appearances of foreign pur-
chases. especially in the Steel stocks.
Traders progressed TO derive some encour-
asement also from the slight change in
front ON the part of the administration at
Washington with respect TO the methods
to be followed in making purchases for the
construction of the Panama canal but upon
reflection 1t was recognized that if there is
to b. ANY unfavora Bile result from the pol
Icy first announced the DANA sc has already
been done. At the outset of the market lit
tie attention was paid TO tie strong like.i-
hood that the bank statement would make
a weak showing. but when the market de-
Veioped reactionary tendencies that pros
pecC FOR vart of any better reason, was
advanced eplaining the break in prices.
Trading was IN comparatively light vol
ume in the early dealings. except in United
States Steel common, which was heavily
all Int s.,,l, i'll
crease in activity on the decline in prices.
Today's weathe. -advices from the western
grain belt were more encouraging than any
received during the past ten days. but the
grain market was but little affected in con-
sequence. There was no actual news at all
relating to particular stocks, and the deal
!nSS in one issue or another varied only in
RESPECT of relative activity and in width of
fuCtuat ion cd
The chief feature of the bank statement
was the Unexpectedly large Increase in the
loan. account the amount being $50, 900.
The change in this item was commonly con-
strued rejecting a number of important
syndicate transactions during the week in
Guiding the flotation of the American
Smelling Securities preferred "B' stock. In
view OF the heavy liquidation which has been
continuously in progress in the stock market.
it had been expected that the loan account
would the most show nothing more than
small increase. The loss IN actual cash
shown was only Si.tJ9,OG0, sum nearly
S;.D0.O0O less than that set forth In the
preliminary estimates. The statement was
far out of technical proof, inaSmuch as the
deposit item showed an increase OF only
SI4 o. O0n. withstanding the changes
noted In the loan and cash accounts. AS a
result OF the other changes. surplus re-
serves decrea sed s.. 4a2 900, which leaves
the banks still holding SS220,00o in excess
of the lawful requirements. Surplus re-
SERVES in the corresponding period OF last
year were slsO04 600; in 1903, $500, 00o and
in 1902 Sl4 3Ol 900