The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-21
FINANCIAL AND COMMERCIAL.
FRIDAY, April 20

FRIDAY, April 20.
Following a decline in the last two day.
of nearly ~ points in the average price
Of the stocks principally traded in, the
security market recovered to-day almost
as a matter Of course. Conditions Of panic
would have been required to force a further
notable decline in values, and these cen
ditions we're unquestionably lacking. The
financial community experienced a feeling
! of relief at the outset to-day over the fact
that the worst about the San Francisco dis
aster was known. 1t was assumed that
the entire city Of San Francisco had been
destroyed, and this practically removed
from consideration the possibility of any
further unfavorable development regarding
the situation there. During the day news
from California was, relatively speaking
encouraging. 1t was to the effect that a
portion of the city of San Francisco at least
would be saved, although the extension
of the fire had been seemingly only stopped
by the circumstance that 1t had reached
outlying portions of the tow where the
buildings we're not standing closely to-
gether. A distinctly cheerful impression
was produced by the energy n optimism
evident in the views expressed by leading
California capitalists, all voecing an I'M
dimmed confidence in the future Of the
city and declaratory of a purpose to re-
place the burned and shaken buildings at
the earliest possible moment. Beyond any
question a favorable effect in a stock market
sense was also caused by the princely and
majestic generosity with which the entire
country responded to the call of suffering
on the Pacific Coast. This was expressive
of something more than a mere humanl-
tartan impulse. 1t represented in a strik-
ing way what vast stores Of wealth there
are in the country ready to be poured out
with unstinted hands in case of any emer-
gency.
The stock market was irregular during
the morning hours, opening prices Of some
Of the prominent shares being below and
others above their yesterday afternoon
closing. Liquidation as the result of ex-
hausted margins and free selling of stock by
s%peculators for the fall were in evidence;
but it was clear, on the other hand, that
concentrated support was being given to the
market. None Of the trouble stories"
that were circulated yesterday afternoon
materialized to-day and banking houses
invariably reported the existence Of sound
dllu llbdllllS COlNlilicllo ~ tNVlN
locally. After midday the market took
on a stronger tone, helped, in the first
instance, by the announcement hat the
local banks had made a net gain in cash
on all accounts during the week of over
SIS. 600, 900: and as it was reasonable to
suppose that the heavy fall in the market
prices had resulted in a reduction OF bank
loans the fact seemed almost assured that
to-morrow's bank statement would be
an extremely good one. 1t was made
known soon after that bonds to the
amount of SO, ESQ, 900 had been deposited by
the national banks with the Sub-Treasury as
collateral security for advances of public
money made in pursuance of fresh gold
engagements in the London market:
and as afrording further insight into
what was going on the price of
sterling exchange broke violently a full
cent in the pound, or to more than
a cent below the normal import point Of
exchange under prevailing circumstances.
Afterward sterling rallied, but there Is no
question but that the largest movement of
gold from London to this side seen in re-
cent years is under way. 1t is commonly
believed that within a fortnight's time at
least Si5, 900, 900, in addition. to the gold
already taken for import by our bank
ers in the foreign capitals, will he on
it's way from Europe to our country.
Naturally, of course, this provoked some
cautious inquiry as to the manner in which
so great a depletion OF their funds is likely
to be regarded by the European markets.
The Bank of England's proportion Of re-
serve against liabilities is not high and
-, r,,ants on account nf the fort IN ming
Russian loan have yet to be one through
with. Discounts were firmer to-day nearly
everywhere in Europe, while consols fell
sharply in London, the latter movement
manifestly representing liquidation for
the account of the foreign fire insurance
companies, whose losses by reason Of the
San Francisco fire have been enormous.
Estimates of these losses were very con-
siderably raised to-day and a sensational
drop occurred on all the English exchanges
in the price Of fire insurance stocks. More
over, call and time money rates strength
ened very decidedly here to-day, undoubt-
eddy on account of the large transfers
of money from this city to the West now
going on. As these transfers began only
yesterday they will not figure to any great
extent in this weeks bank statement, but
there is no doubt that they will be only
in the next few days by the capaoi-
ties of the banks in the State of California
in and near San Francisco to handle the
money sent. Quotations for time funds
for all periods to-day rose to figures vary
ing between So per cent. n 9 per cent,
while the bulk of the days call money
was put out around 5 per cent. These last
developments were not, it must be adj
mitted, especially favorable, but they did
not interfere with a vigorous rally in the
market, which was carried on throughout
the entire afternoon. 1t seemed to be the
Judgment OF most observers that the retire
ment Of commitments for the decline made
yesterday and the day before had most to
do with the days rise.