The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-06
FINANCIAL AND COMMERCIAL.
SATURDAY, Aug. s

6OoN uCoi vi BohuHhj CuUuuShkSLll' q
was greeted with hHlllsh applause in tn
board room. but on the whole very it'll
fuss was made about 1t. This is the highes
price at which Steel preferred ha, evel
sold, and to-day's quotation wa made II
the course Of transactions which amounted
all told to less than 5000 shares.
The weekly bank statement, as expected
made mixed and unsatisfactory showing
The cash holdings OF the banks decreased
q, 7o7 100, and loans increased 81, S1o, 800
This increase In loans brings the total W
to u, l46, 1873, 700, tbs largest ever reported
by the Associated Banks. Deposits de.
creased 2,8lS,000, so that reserve require.
ments were reduced 1854 $50 The differ.
ence between this reduction In reserve 10.
quirements and the loss Of S3,797,lO0 In
cash, or actual reserve Is tho amount by
which surplus reserves are decreased, viz.
&9,142 $50. The total OF surplus reserve Is
now $l2.l63,52j. ga against $50 1908 $50 for
the corresponding week of last year The
: surplus reserve, in fact, IL tho lowest for
this time Of the year since August, 1902,
when for tho corresponding week it was
So,03l ESQ. What befell In the autumn Of
1902 Is easily recalled. The Western crowd
that had control OF tn, market buled 1t ag-
gressively right UP to point in September
where tho, surplus reserve fund became
entirely exhausted On the week ending
Sept. 10, 1902, tbs banks reported a surplus
reserve Of bit s7l5,Ooo, and on the week fol-
lowing they reported a deficit of s., 842 $50
That was ths besinaingof a breaking down
IN the stock market, and a decline at r I'd
which I'll no. eliminate until la.e in tn,
year 1898.
The essential difference bel wcen the
present situation and that Of 1902 is in The
stock market itself Then there was q wild
and hcadlons speculation in progress, and
the biz commission houses of Wall s rect
were borrowing Ill the money they could
lay their hands on. This house wa borrow
ing $50 1000 900, that one $50, 900, 600, ano her
100000. and so on. The requirements
OF the lock market Mt the present time are
relatively Insignificant. There is no over
extended bull account. commission houses
are not loaded up with stock, and general
speculative interest is at low ebb If the
stock market at the present time we're in
speculative position corresponding 10 that
IN which 1t found itself three years ago.
the money market para llel would be really
disturbing. As it Is, however, there il not
a prominent banker in Wall ST. rect who
will concede tho proba bility of a serious
money stringency in the autumn. Every
body is looking for higher and more
active money market, but nobody whose
opinion counts for anyi hing eypects more
than this. The weekly bank statements
do not properly cover the financial condi.
ton Of Wall Street. The testimony of
bankers on one point is unanimous. viz.
That thnro ia n
money available to Wall rect, and that
reasonable advance in interest rates will
cause money TO geek This center in almost
unlimited amounts. Unless bankers whose
predictions in the past have been trust.
worthy are all misled in their Judgment
OF existing conditions, there is no. hing in
,{{ne money market outlook that need worry
,diose now holding bullfh position on the \
stock market.
In a slow and leisurely manner the stock |
market made further Improvement this |
week. but In the direction Of higher prices
rather than in breadth. Indesd. many
Are complaining because the market does
not broaden moro rapidly. Sentiment is T
bullish. not only in Wall Street. but outside
81 1t. and brokers generally affirm that
people would enter the market if induce
nents were offered. but those who may be
to control the situation have so
ar refrsined from making the moves and
asserting the leadership that would en-
courage broader speculation On tho
disposition has been shown
% hold the market in check egains. active
operators who would be willing to take
,old OF 1t nggres 'ively on their own &C.
'ount and see what publio RESPONSE they
'ould get. Union Pacific has been a check
'pon the market. All who have tried to
'ull 1t above l3l have found their opera
IONS to bs quietly opposed. and others
Vho have tried to depress it below 100 have
ound similar resistance on that side. The
esult In tina. Union Pacific has bcel moving
within very narrow range on the level
I $50. Similar tactics arc being employed,
seems. il other stocks, but Urion Pacific
J by far the most prominent example.
hose to whom Wall Street refers az the big
lterests ovi!eruy are rot ready to o.
ourage an active speculation for tho ad-
ance Meanwhile it is too narrow a market
n which 10 distribute stocks in a large
ely.
Professional operator , finding the stand
I'd stocsa 10 he in leash. as it were, turned
,oir attention this week largely to special
go. of which an imposing parade was
ade Thor movements, however, were
no general interest. Perhaps the most
,tabie feature Of the market from near
oint of view was the strength of the United
-ates Steel shareo, especially Steel pre-
FRED, on a small daily volume CT trans
'tions. In no single day did the stocks
ictuations cover a range Of ns much as
per cent. hut it advanced steadily in .
nall fractions and sold to-day at 1906.
here is an obstinate lear crowd that is
eadiiy;, selling the common stock. The
ort interest in Steel common is believed
: some Observing persons to he larger
an the bear account in any OF. or one .
cnrity. 7.s7 - .o.. ,--,. 49,,
The bear element, the resources of which -
9TH In money and wits are not to he de- Al
ised, fs counting heavily upon accidents Al
has been expecting an accident to the Al
ops. but the rincipal crops are almost -. "A,
CT danger. Twice recently the bear A,
ovid has attacked the market AID on Ar
tn occasions it has been unable to get its An
'cks back at a profit. An
80 far the stock market has tnken very An