The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1906-04-08
STOCK MARKET
CLOSES EASIER
Bank Statement Shows Cash
Reserve Is Considerably
Below Legal Requirements
MANY RUMORS CURRENT
Speculative Activity Para
lyzed by High Rate of In
terest on Money ON Call

terest on Money ON Call
NEW YORK, April T.-Todays bank
statement showed the cash reserve of the
clearinghouse banks to be 1850, 625 below
the legal requirement. The showing was
not surprise in view of the course Of
the money market this week and of the
reports Of the known movements of
money, which made their appearance yes
terday. The cash loss disclosed by the
bank statement of s7.9O4,2e0 was about
equal to the minimum estimates Of yes
terday. The considerable loan expansion
of S2O5.50 occasioned some surprise.
While the stock market of the week has
given no evidence of important liquida-
ton, it was believed large transfer was
going on of credits from the local banks
TO interior and foreign lenders. The stock
market yielded ground. but slowly, after
the publication of the bank statement and
from the vantage point of some earlier
advices. The closing tone was easier, with
some support here and there
The last occasion on which the banks
showed a deficit in the surplus reserves
was on December 8. 1t was in the week
following that speculative activity became
most pronounced on the Stock Exchange,
the aggregate sales of the week rising to
more than 100000 shares, with advances
of from five TO nine points in such stocks
as Union Pacific, Great Northern pre-
ferred, st. Paul and New York Central,
In spite of the continued strength in the
money market, which eliminated in the
last week in December in the 120 per cent
money rate. The speculative contingent
in the market today were inclined to
make much Of the analogy
MANY RUMORs CURRENT.
There were many rumors current in the
stock market of gold engagements for
exports TO be executed next week, follow
ing arrivals in London. Not much coun-
tenance was given in banking circles to
the supposition of large gold shipments
to arrive in London, or of the likelihood
of securing large amounts for New York.
Foreign exchange here was firm all day,
although the Saturday market is nominal,
and the quoted rates were considerably
above those of yesterday. Both Paris and
Berlin are looked upon as competitors for
any gold supply in the London market.
German and Prussian loans to the amount
of $40, O00,0 900 are imminent. Estimates of
the forthcoming Russian loan vary all the
way from 100000, 600 to s400, 900, 900. Loans
al the Stock Exchange made on Friday
carry over until Monday, so that the call
fnal and offered no light on the probable
course of next weeks money rate.
Total sales of bonds, par value, LIE, 900
Money on call has commanded higher
rate of interest at the Stock Exchange
this week than in any first week of April
in more than thirty years past. The re-
suit has been to parelyze speculative &C
tivity in the stock market and to chill the
spirit with which the week opened and
which carried prices to a sharp advance
on larger days business than had been
done for several weeks past. In the pro-
gressive subsistence of activity during the
following days the higher level of prices
was yielded only slowly and irregularly,
and the speculative commitments which
had induced the rise were maintained
with a show of stubborn pertinacity.
The stringency in money has gained
in severity from day to day, instead
of gradually relaxing, and has thereby
disappointed the calculations of the
party which embarked in the specula-
ton last week. Interest and discus
sion this week have conferred on the
money question almost to the exclusion
of other subjects The immediate cause
of the stringency is clearly traceable
to the heavy demands upon the cash
reserves of the banks. Large remit
tances have been called for from in
terror points and from the large bank
ing centers on the Eastern seaboard
and transfers have been made both by
the medium of the Sub-Treasury and
by express. Telegraphic transfers to
San Francisco were recognized as a
means of remittance to Japan of funds
Of that Government on deposit in New
York.
Customs collections have been large
and have made the Treasury re-
quirements on the New York banks
onerous. The immediate cash outgo
from the banks has been large enough
from these causes to deplete the meager
margin of the surplus reserves and to
exhaust the supply of loanable funds.
But deeper-seated causes are sought for
the scarcity of available funds and the
principal of these has come to be gem
orally recognized in the heavy demands
for new capital outlay in the last three
months. The enormous new ISSUES of
bonds and stocks in that time have
been the subject of constant observa-
ton and discussion. An effect was
early produced on the bond market,
which became torpid and slow from re-
pletion. One effect of this was an
abrupt drop in the par value of new
securities offered during March to $780,
100000, compared with a volume Of
$277, 500, 600 during February. Another
erect was the appearance IN the mar
ket of issues of short-term notes by
railroad companies at the high prevail
ing market rate of interest and secured
by the newly authorized bonds as col
lateral. The situation in the coal trade
has also had its influence.
Bonds have been dull and heavy in
tone. United States old As declined x !,
the new As and 80 coupan u and the
3s registered II per cent on call on the
week.