The San Francisco call., 1905-05-21
MARKET
IS DEPRESSED

NEW YORK, May 20.-To-days stock
market started off rather hopefully, but
before the end Of the two hours ses-
sion depression had closed in again and
the closing was weak at considerable
net losses throughout.
The bank showing formed practically
the only item of news which was of
influence in the trading. The shrink
age in the cash reserve of 81, ,759, 500
proved somewhat less than the prelimi
nary estimates. Attention centered on
the loan item, which was expanded up
ward of 20,00o,000 An addition to de-
posits, which expanded the reserve re-
quirement by almost as much as the
shrinkage in cash, resulted in an inroad
of over so per cent on the surplus re-
serve, bringing it down to SS,219,975
Upward of 100000 of the loan ex-
pansion was made by single institu-
ton and is attributed largely to the
underwriting subscriptions to the $780,
600, 900 Pennsylvania bond issue, so per
cent of which was paid in during the
week past.
STERLING EXCHANGE ADVANCES.
Sterling exchange made further ad-
vance to-day and it is evident that
preparations are being made for the re-
mittances on the Japanese loan sub
scription. 1t is not believed by bank
ing authorities that these remittances
can be completed without a large ex-
port of gold, unless the rates for money
here should rise to a level to offer an
attraction for the leaving of proceeds
of the loan in New York for use in the
money market.
Total sales of bonds. par value,
S1.795, 900
The depression of the iron and steel
stocks was in a measure due to the
character of the discussion in stock
market circles on the announced de-
termination of the administration TO
purchase material for the Panama ca
raj abroad where that can be done
more cheaply than in the United States.
1t was argued that this position was
calculated to precipitate the whole
question of tariff revision, especially
as it bears on iron and steel duties,
and was liable to be made a supple
ment to the agitation for Government
control of railroad rates and of cor
porations in general.
INTEREST RATES EASY.
Security holders have shown a SEN
sitive feeling on this subject for some
time, and the prospect of an approach
ing legislative campaign is not viewed
with eQuanimity The Northwestern
power to influence speculative senti-
ment and a new outcropping of the
multitude of rumorS of deals in that
field was made the instrument of the
efforts to start an upward movement
early in the week. The action of the
Northern Pacific stockholders at their
long delayed annual meeting in drop
ping from the directorate all the rep
resentatives of the Hartman interests
was given very unfavorable interpre-
tation. The conviction remains strong
that numerous plans have been under
discussion looking to the maintenance
of harmony, but in the absence of any
reliable information of these plans or
any authoritative admissions that they
have become effective, the Northern Pa
cific election had the effect of discon-
certing speculative sentiment.
Interest rates have been easy and
supplies seem abundant. The largest
Withdrawals on account of the return
of Government deposits had not the
slightest effect.
Weather conditions for the crops
have not been considered favorable and
the weakness of stocks late in the
week was made the occasion for some
thing like crop scare. Foreign poll
tics has not been without influence
on our stock market and the report,
afterward denied, of the occupation Of
Chinese port by German troops was
the occasion of selling here for foreign
account. The coming naval battle is
also an uncertainty in its effects.
Bonds have been dull and have de-