New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-08
STOCK MARKET OPERATIONS.

The stock market was again yesterday re-
sponsive mainly 70 money market considera-
tons. and accordingly displayed throughout
most 81 the day a hesitating tendency. closing
irregular. with net losses and net gains about
equal IN number The opening showed few
changes from Thursdays closing figures. and an
effort TO lift prices was effectively discoura ged
by an advance in the call money rate from 9
per cent at the opening to 16 per cent in the
course OF the first hour Rates for time loans
and loans on mercantile paper held firm at their
high levels. and A selling movement in stocks
followed the publication OF the estimate. based
upon the known movements Of money. OF a loss
by the banks during the week OF S10.7OO.OOO in
cash holdings. This decrease in cash. unless
the shifting OF loans from the banks 20 other
institutions and 10 bankers has been very large.
should presage the disappearance OF the surplus
reserve in to-day's bank statement and the
creation Of a deficit IN the aggregate reserve
OF the Clearing House institutions and the pre-
vailing Wall Street opinion IS that a deficit Will
be shown The engagement Of 100000 gold
was reported from London. and II Is probable
that on Monday. when the Secretary's order goes
into effect. the engagement OF from S10lO00,OO0
10 Sl5OO0O00 will be announced by the i'm
porting banks Tho entire movement may
amount 10 S250GOOO0 or S30OOOOOO. but with
the surplus reserve vanished before the crop
moving demand for money has attained large
daily Dimensions. the banks will need. before
the return flow OF cash from the interior comes
the full measure OF the fertilization Of their cash
resources which be provided by gold i'm
portatiOns. Foreign exchange ruled fairly
steady yesterday. the demand rate closing AZ
around $500. equivalent 70 the rate prevailing
Just before Secretary Shaw put his facitation
order again into effect. plus the allowance
usually representing the item Of interest in tran
sit. The rate for call loans. which had gone as
high as Il per cent. declined at the close 10 the
nominal figure OF ? per cent
Contributing 10 the afternoon weakness were
ruTnors from Pittsburg and Philadelphia OF the
embarrassment of another financial institution
but these reports. which lacked any condrma-
ton. seemed to have had their origin in the
fresh revelations regarding the wrecking OF the
Real Estate Trust Company OF Philadelphia.
Perhaps little OF the selling toward the close
was due to the issuance OF the warning circular
OF the Secretary OF the Treasury. but that cir
cular. sound Of doctrine II was caused no
uneasiness among the leading market interests
and, indeed. was welcomed IN some quarters as
intimation that the Secretary was making
ready 20 furnish further aid 10 the sore beset
money market. conditioning his help upon the
conservative use by the government repositories
OF the increase in resources already granted
them by the Treasury. How the Secretary Is
70 enforce the prohibitions laid down in his
circular Is the question 1t is not clear IN what
way he could hope TO discover. except by or
dering examination OF the Individual institutions
whether or not a country bank IS sending its
surplus funds TO be loaned in the New York
money market although the order may he
obeyed 20 a greater or less extent by country
banks. As for the depository city banks the
point is raised. what are regular rates" a
query which might ford q basis for much
argument and expostuation from institutions
which. when period Of per cent money is
followed by a period OF active demand for ac-
commodaton, adopt the policy Of obtaining for
the use Of their funds great a return as they
can.