The sun., 1905-08-26
FINANCIAL Avn COMMERCIAL.
FRIDAY, Aug. "a.


FRIDAY. Aug. "a.
The stock market to-day again vi'ioly
suffered from the worry disa grecahle imprcs-
sion made by tho scnsa ional performances
yeste rday In Heading common stock Dis-
proof that corner In the 1t ock was In prog
ress wa.. 1t was thou ght. found in the fast
that there was no excessive borrowing
demand for the shares and In the anno'inee-'
ment Of commission house prominently
Identified with the rise In Reading that
$50, 600 shares OF the stock could be bor-
rowed from the house at a low rate OF inter-
est. This obviously testified. however.
II not to a corner, at least to a oonosntra-
ton OF holdings for speculative purposes:
and the question became very pertinent
not only whether pool operations In Read
ing had not been carried to an unhealthy
extreme but whether violent upward move
ments in various other stocks recently
might not have been Of the same character.
In the case Of Reading 1t Is not probable
that despite the known value Of the stock
any such quantity Of II as has been indicated
could be quickly marketed without heavily
breaking its price, while 1t Is manifestly
unfortunate for those who have purchased
the stock at prevailing figures II they find
that they cannot further advance it's prios
without depressing the general stock market.
Reflections Of this nature were disquieting,
not only to conservative financial interests
but to the rank and file OF spectators, and
there was, therefore, throu ghout the Stock
Exchange session to-day a good deal OF
liquidation. At one time In the morning
hours prices broke sharply, but althou gh
they quickly recovered from this drop the
market continued dull and heavy, advancing
slightly at the close.
Other influences to-day which also un-
doubtedly assisted in the check to the mar
ket given by the Reading affair were the
more unfavorable character OF the news
regarding the peace negotiations and the
indications that to-morrow's Clearing House
statement would show further substantial
contraction Of the bank reserve. While
the Russian Minister Of Foreign Affairs
denied the authenticity Of the fatfooted
statement alleged to have been made by
him yesterday that Russia would under no
circumstances pay any money indemnity
to Japan 1t. appeared that the indemnity
question was still the one matter In dispute
betwe the two countries and that there
try to pay an indemnity and Of the other
to stop the war without an indemnity was
in the way Of the least abatement. Pessi-
mism concerning the outcome here made
for more or less weakness on all the foreign
exchanges although it did not result in the
selling Of stocks in any notable quantities
in this market for foreign account. There
was a disposition in certain prominent
quarters here to consider the news late In
the afternoon of the signing Of a treaty
Of ofYense and defense between England and
Japan that was Of stronger character than
the treaty previously existing as not an
altogether favorable development from the
point Of view OF the immediate stock
market. The preliminary estimates Of to-
morrow's bank return to-day variously pre-
dicted loss in cash Of between 1000, 900
and "a 500 900, and as last weeks compilation
under the average system only exhibited
about half the loss in cash that 1t is known
had thea occurred, the probability is not
unnatural.that the loss In cash as shown
tomorrow will be greater than to-day's es-
Inmates made out. Further emphasis upon
the movement Of money to the agricultural
section was laid by the shipment OF 500, 900
to-day to New Orleans from Chicago and
by the rise in Chicago exchange on this city
to a discount greater than was the case
at this time year ago. Call money to-day
at one time touched 81 per cent, the highest
level thus far Of the season, and though
this movement merely represented belated
borrowing, 1t testified to an increasing
scarcity Of funds.