Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-09
Presidents Message Had No Material
Influence on the Market for
Good or Evil.

reserve SluCo Tic SulIiiAel VI 1000, "iiSAA siiS
endless-chain drain on United States
treasury gold holdings was in operation to
supply the exgent demand for gold to ship
outward The showing compares with a
deficit in the corresponding week of last
year of 81 .246, 52o.
Last year an animated speculation broke
out on the stock exchange in the week fol-
lowing the deficit. 1t Is this precedent
which plays an important part in keeping
up speculative confidence in the present
market. Prices waVered and yielded
slightly today after the bank statement ap-
peared. but recovered nearly all the de-
clines before the trading ended, and the
closing only slightly irregular. The
Hill stocks We're conspicuously weak. and
the Hartman stocks showed some special
effect of the judicial proceedings against
the companies in Utah.
No Money Market on Saturday.
There is no money market at the stock
exchange on Saturday, loans made on Fri
day carrying over until Monday. The effect
of the bank statement was restricted to
sentiment, therefore. Sentiment on the sub
ject was modified by the firm confidence
that some action would be taken by the
Treasury Department for the relief of the
money situation in the interval before oper-
atoms are resumed in the stock market
Monday. Movements were reported to be
in progress in mercantile quarters to urge
the Secretary of the Treasury to release
government funds to the money market for
the relief of restrictions, said to be evident
on commercial operations by reason of the
money scarcity. Total sales of bonds, par
value S950,0O0.
Acute stringency has ruled in the money
market all through the week, and the
money position has occupied attention al
most to the exclusion of all other topics,
although there have been several develop
ments of Importance. Call loans have risen
above 20 per cent every day of the week.
Resistance to Conditions.
The feature of the stock market has been
its stubborn resistance to the conditions
in the money market, prices yielding slow
ly and irregularly and from the vantage
ground OF early advance and occasional raj
lies. The undertone of firmness in the mar
ket has been due to the sustained conf
dence in the underlying conditions of pros
perity throughout the country. The techni-
cal position in the stock market also Is re-
sponsible to large extent for the f1rmness
of the resistance to the money strlngency
1t is the common assumption that the prin-
cipal speculative holdings in the market
are by capitalists of large resources and
important and widespread affiliations,
whose position is fortified by credits other
than those subject to the vicissitudes Of the
day-to-day money market. 1t Is assumed
that the high rates paid at the stock ex-
change from day to day are paid by small
operators less fortunately situated or
by the large operators on portion only
of their borrowings, on which the average
cost is reduced by loans on call at lower
rates The high rates for call loans have
been the subject of much discussion, and
some severe criticism, accompanied by
charges Of manipulation of the money mar
ket and of artificial rates for erect on
sentiment or for other purpose aside from
the normal ends of money lending. These
accusations gathered point in the remarks
of Jacob II. Schiff before the chamber Of
commerce in connection with the presenta-
ton of a resolution to devise measures
for the regulation of the call loan market.
Contraction of Credits.
The specific allegation was made of an
institution calling loans at to per cent
in the morning and putting out their funds
later at the advanced rate which resulted
from this contraction of credits. Such
practices to increase the profits of money
lenders have been charged on many occa-
sons. But the straitened condition of the
New York money market, which give OPP
portunity for the success of such manipu-
lation, is obvious from the figures of the
money movement. The absorption of funds
by the subtreasury alone this week was
sufficient to have exhausted the slender
surplus of reserves of the New York clear
ing house banks shown by last weeks bank
statement early in the week. Not only
have government revenue collections on
account of customs been very large. but
large sums were deposited at the govern
ment institution for Geographic transfer
to San Francisco and New Orleans for
the movement of the fruit and cotton
crops. Interior exchanges at other points
failed to move decisively in favor of New
York. even with the attractive rates pre-
vailing for money in the New York mar
ket.
in fact extended to unprecedented de-
gree as shown by the compilation of re-
ports of national banks as of November r.
completed at Washington this week Indi-
VII iapOSfts n national hanks ha
banded over year ago to the amount of
$500 241 .004, government deposits ST.. 500 1872
and loan and discounts S349, 309, 1877, while
the cash holdings have increased in the
came time but Sl2 45SO7S The banking po-
sition as a whole. however. receives a more
favorable sideight from the showing of the
New York trust companies In their reports
10 the superintendent or banking at Al
bany. From this IL appears that the trust
companies have fortified their cash hold
ings in compliance with the new state law
for trust company reserves to the extent of
S27.OOOOO. the comparison being between
November a. 1906, and November o, 1905.
Decrease in Deposits.
The deposits OF these institutions in the
same time have decreased s53, 791. 900 and
their loans on collateral contracted $62, 1885,
GOO. The evident stress on the money mar
ket kept alive a confidence that measures Of
relief would be taken by the Treasury De-
partment. owing to the large absorption
from the market by revenue collections.
The opinions contained in the annual report
of the Secretary OF the Treasury of the duty
incumbent upon that department to avoid
the locking up Of funds in the treasury In
time OF active need in the money market
confirmed this feeling Of confidence in meas
ures to be expected from the department.
The payment In advance OF government in
terest due up to and including May 1. 1907
which 1t was announced would be made on
December Is, failed to meet expectations in
Wall street to the amount or as to the
promptitude of the relief.
Source of Speculation.
good deal of interest attached to the
source OF speculation in mining stocks in
the curb market owing to the fears that a