Los Angeles herald., 1905-11-16
Rv Associated Press.

NEW YORK, Nov. 15.-Stocks made
further recovery today under the influ-
ence of return of confidence in the money
outlook. There was continued stingency
in the money market, but 1t was less
severe than on yesterday, as yesterday
was less severe than b On Monda{g Whf
the maximum they were well above the
normal. p But 1t was obvious that at the
prevailing rates sufficient funds were to
be had to meet the demand. There wes
no further evidence of forced liquidation
in consequence of lack Of funds Active
discussion still centered on the money
situation and its principal phase today
was as to the means which had been
used.
1t is not commonly believed that any
thing like sufficient liquidation of stocks
or reduction of loans has been effected to
accomplish the easier condition in money.
1t is known that very heavy resort has
been made to other money centers to take
over the credits which were being forced
to settlement by the money stringency
here and the attraction Of the high inter-
est rates made this feasible by bringing
in large offerings of foreign money 10
the New York market. The operation In
in a large transfer of speculative hold
ings from New York to foreign markets.
This was accomplished by. sales of stocks
here and repurchaSeS OF the same issues
in foreign markets.
A parallel operation was the paying off
of loans In New York by which the
stocks were held and the borrowing for
a similar purpose in the foreign money
market. The London demand for stocks
here Is believed to be the result of this
process and shows the offsetting effect
Of the, operation in one market against
the other.
The high money rate also has at
tracted funds from out of town points
both in Canada and in the west. There
is outspoken discussion around the stock
exchange of a supposition that the banks
have determined themselves authorized to
make further encroachments on their re-
serves in spite of the deficit below legal
requirements shown Saturday in the bank
statement. Some of the speculative COM
ment on the situation affords to the pub
lished utterances of the secretary Of the
treasury an inferential sanction to this
action in case of it's being necessary to
avoid financial trouble:
1t is pointed out that the issuance
of a call upon national banks to report
their condition November 8 relieved them
from the necessity of keeping up reserves
for the purpose of window dressing, as
it is admitted is customary in case Of the
sent out today by the banking depart
ment at Albany for a statement of the
condition Of the state banks and trust
companies also as of November g. The
same condition therefore applies to the
trust companies in this matter as to the
banks.
With the relaxation in the money rate
today sterling exchange became strong
again today and turned decisively away
from the gold import point. A scrutiny
OF price changes made during the day
disclosed. how large a part was played
in 1t by specialties as distinguished from
the general standard market leaders.
Large coverings of shorts was undoubt-
edly an important factor and in stocks
under pool control the movement against
the shorts was especially aggressive. The
strength in other individual stocks was
attributed to special causes, although
they We're not always known. Hooking
n mi M
on suppostion from the coming retire
ment of the preferred stock Buying
of the Kansas e. Texas was alleged to lie
In the Burlington interest. Advances in
Southern stocks may have been in con-
nectlon with the more liberal estimates
of the cotton crops. The Standard oil
dividend was help to the market. Ths
profit taking in the late dealings made
only. a slight impression on the closing,
which was generally strong.
Bonds were firm. Total sales, par value
United States bonds were all unchanged
on call.