The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-10-01
BANK STATEMENT
WAS FAVORABLE
Consequently Prices of Stocks Ad-
vanced in Wall Street.
NEAR THE TOP AT CLOSE
REVIEW OF MARKET coNDl.
TIoNS THE PAST WEEK.

New York, Sept. 3O.-The weekly bank
statement was the center of interest
today, and published limitations Of its
favorable character were circulated be-
fore the statement itself appeared.
Prices advanced accordingly. and while
some hesitation developed in The clos
ing tone last prices were near the best.
The weekly bank statement has been
subject to criticism for long time as
an inadequate showing of the actual
conditions of the banks, principally on
account of the operation of the system
of computation by daily averages. But
the skepticsm which found expression
over today's statement was unusually
frank and general owing 10 the eX-
treme variation from the estimated re-
suit. The known movements of money
for the week promised a decline in the
cash reserve fOf more than S6,0OOrOO0.
The bank statement. on the contrary
Indicates an increase of Sl,o22,3Vo.
The extraordinary requirements OF
the week for the syndicate payments
quarterly settlements and the New
York tax payments TO be made Mon
day promised an unusually heavy de-
mand for credits The loan item of the
bank statement. on the contrary, shows
II contraction of $4,S10,SOO The net re-
suit is TO eXpend the margin OF the
surplus by S2.204,975. Expert authorities
are entirely at a loss to find any eX-
PLANTATION for these discrepancies I'm
the matter of the cash item 1t is suS-
gested that the gold manasements for
import may have been made TO hgure
in that item on the supply being Sc
cured abroad without waiting for the
receipts of the actual metal. II IS said
that this is the custom of the banks
of France and some other foreign
banks Last nights steamer from
England brought 2,25O,OOO in gold,
which would not figure normally In the
bank statement until next week.
Confusion in the loan item after great
transactions is explainable when the
period Of settlement comes in the mid
die of the week. owing 10 the working
Of the average system. But With the
settlement comes at the end OF the bank
week the fun effect OF the loan opera
ton would be expected 10 be reflected
In the bank statement. The speculative
operators in stocks accepted the state
ment at its face value. Feeling among
them was confident, also that the maxi
mum effect of the Oct ! settlements
was shown IN yesterdays money mar
ket, and that easier conditions will be
felt next week. The heavy adjustments
made were reflected IN the days record
clearing house balances which amount
ed 10 $50, 995,57S, exceeding the greatest
previous record by more than S3,0OU,OOo.
Yesterdays increase in the railway
steel spring dividend stimulated num-
Der of low-priced industrials. The prin-
cipal movement, otherwise. was that in
the Reading stocks. Total sales OF
bonds, par value, sl,1f5,000,
Review Of the Week.
The volume OF dealings in stocks this
week has shown a shrinkage from day
10 day under the cOnstraiuing influence
OF diminishing supplies in the money
market. 4 moderate effect was pro-
duced in prices, but the decline was
not steadily pursued. and strength from
time TO time in special stocks served as
a sustaining influence on the general
list The factors In the money market
were so accurately known and the eff
feet so early foreseen that there has
seemed no room for ignoring them, and
their development has not uncovered
any weak position up TO this time. The
feeling has been prevalent that the spe-
cial demands being met this week I'm
the money market were of a kind which
would be temporary in their effect ana
the hope has been held that the sup
plies accumulated for meeting great
syndicate transactions would flow back
quickly into the money market with the
conclusion of those transactions. The
payment of subscriptions 60 the Penn
sylvania and Atchison convertible
bond issues have been the special OPP
|, erations making the largest demands
which are TO be met today, and an eX-
tensive shifting of loans has gone on
during the week in preparation for
these payments and for the Oct. 1 quar-
terly settlements which are unusually
large.
Aside from these special requirements
demands on bank reserves have con-
tinued large with heavy prospect of
persisting for some time. The course
of money rates has been upward
throughout the worlds money centers
and some further large credit require
ments are 70 be met by the New York
money market in the immediate future. !
The future OF the money market IS, /
therefore, by no means clear. The ad-
monition TO caution i'm the use of cred |
its on stock market speculation was of
a force that had to be needed. and was
effective with the rise in money rates
TO the highest level of the season. The !
advance of a fun ! per cent IN the I
Bank of England official discount rate 4
10 4 per cent was proclamation of the /
shrinkage of banking resources and OF 7
the necessity for retrenchment That /
rate has not been touched by the Bank /
Of England for over TWO years. and has /
only been exceeded a few times i'm I!
many years past in times of special /
stress. A policy OF recuperation is thus /
clearly fOreshadowed. which had its !
immediate effect on the continental eX- /
changes in London.
The problem OF New Yorks ability to /
draw further gold from Europe for its !
own relief is thus made Immediately /
prominent Parcels Of gold engaged last /
week in London have arrived from time I
10 time and have gone into New York /
bank reserves, and an additional SlS00.- !
0OO was secured early in the week TO /
arrive next week. The forthcoming
Russian loan has come up for renewed /
concern, and reports abroad have stat /
ed the intended amount TO be $l15,000 /
poo 20 be appOrtiOned TO Paris and Ber- !
in. 1t is the general expectation that /
here viii be a New York participation .
In the subscriptions also. Foreign eX- /
change rates in New York went higher /
under the influence of hardening for /
sign money markets. Some OF the eX-
change was attributed 10 a demand /
from short interests 20 cover sales /
made against earlier borrowings abroad /
and against the imports Of geld. There |
has been complaint OF scarcity OF (
Grain and cotton bills. foreign demands
for cotton having been curtailed by the 1
SPECULATIVE level 10 which the prices of ,
hat commodity had been lifted. The /
,reak in the cotton market after the /
middle of the week brought some re-
vival of foreign buying and the foreign
exchange rate was affected by that and
he rise in our money rate.
The sub-treasury Is taking very large
sums from the New YORK money mar