The daily morning journal and courier., 1905-11-11
STOCK MARKET FEATURES
HONEY WAS TIGHT BUT STOCKS
 WERE STRONG.

This View Stocks RaIIied-Pessimists
 However, Do Not Look for Easy
 Money for Some Time.
 Tightness continued in the Wall street money market yesterday, the rate for call loans rising to 15 per cent, equahng the highest quotation of the day previous. In the face of this surprising hardness was exhibit ed by stock prices. In the afternoon. after a recession in the money rate from 15 to Il per cent. stocks advanc- ed rapidly.
 Brokers and their customers consider ed the money squeeze to be only tenn porary, and were hoping for news from Washington to the effect that the secretary of the treasury will extend relief by depositing additional govern ment money with the special deposit ory banks. There was no confirmation of this, however.
 Howard P. Frothingham, represent ing various banks, was the largest lender, putting out $5,OOO,OOo between Ii and 15 per cent.
 It was necessary for the banks to call loans on very large scale again yesterday. The loss in cash which ! fhhIy ho t. | ed from $S,000,000 to $9, ,500, 900, compels the reduction of loans in order to main tain the surplus reserves. It is believ- ed that through the liquidation of stocks this week and other transfers of | money, the loan contraction will be 1 sufficient to offset the cash loss and that the bank that, a week ago, held practically all of the surplus reserve of l $2,S00,000, will show a surplus above 1 legal requirements again to-day
 Chesapeake & Potomac Telephone stock, considerable of which is held here, has risen In price this week, and in Washington, D. C., yesterday it was quoted at 47 bid and 52 asked-the highest price in good while. The company was started by the late Her rick P. Frost and other New Haven men.
 The further break of 15 points in ster- 1 ling exchange to 4,S59 at midday was accompanied by the liberal sale of bankers bills, to take advantage of the high call money market and the firmer time rate. It was calculated that this helped moderately to reduce the loan account of the local banks.
 The peg" on Steel common at S6 was effective again yesterday. It is claimed that there are a great many stop-loss orders at that price and down to 35. @I
 Wall street yesterday was more in clined to believe that Mcclellan may hold onto the office of mayor, and this caused @ rally in the local fractions.
 Reading is regarded as the key to the market. So long as the bull pool can hold 1t no decided break in prices is anticipated.
 The absence of engagements of cur- rency yesterday for shipment to the in terior through the sub-treasury, came in flor good deal of attention. It was interpreted by some to mean that the Idraiu on New York would ease up and that it might be temporarily over.
 If the surplus reserve is exhausted to-day it will be the first time such thing has happened since September, 1902
 The agricultural departments report on cotton conditiOns-the first ever made in Novemher-gave another shock to the trade, and caused the raising of all the private crop estimates which were reduced at last weeks 'gin- ming estimate"
 The greatest proportion of buyers were those who were short of stocks, and though the 1 point decline was enough of a reaction for the present. Traders also bought on the theory that the money situation would improve next week. Commission houses were cautious, and a number of the larger ones stated plainly that they looked for lower prices.
 From 39 down to 36 the distribution of Steel common has been heavy, and it is now reported that new interests have begun to take hold of the com mon at current prices. The trade sit uation is even stronger than it was when Steel was last selling at 36.
 If the recovery in yesterdays stock market was based on expectation of a show of improvement in to-day's bank return, the improvement will have to come through loan reduction.
 The general loaning rate for stocks was 10 per cent. Missouri, Kansas & Texas and Illinois Central were the only stocks in demand.
 The rise in Republic Iron and Steel preferred followed the annual report shows surplus of $1,373,607, compared with deficit last year of $611, ASA This seemed to prove conclusively that the back dividends could and would be paid.