The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-30

SATURDAY. Dec. q

tinuously during tne SVocA EA-
change session to-day prices OF the securl-
ties in which speculation usually centres
declined considerably. The market was
not at all demoralized and at the close
prices were still well above the low level
touched earlier in the week. The fall was
most conspicuous in the case OF Reading
common, a stock in which fluctuations have
long been, for reasons perfectly understood
IN the financial district. unusually wide.
Other prominent declines were those In the
Hill stocks and st. Paul common. the last
named shares touching a new low record
made since the announcement OF the ST.
Paul company's new financial plan. Inc
Atchison, United States Steel and Southern
Pacific shares were relatively the strongest
stocks in the market. An effort seemed TO
be made at one time toward rsllying the
market under the leadership OF Atchison
common, but this purpose was soon aban-
doned and all the stocks named sympa-
thized to a greater OF less extent with inc
fall in values that went on. The weekly
hank abatement proved a mixture OF favor
able and u~nfavorable news from a stock
market point Of view. 1t was favorapie
because OF an increase in cash holdings oil
the Clearing House institutions OF "a sol 900,
the sum being larger than had been esti-
mated in any forecast of the return. Inc
bank statement was not liked In that It
SHOWED an increase in loans OF $3.50, 700,
although a decrease in loans had been con-
fdently looked for. Last week, as will be
remembered, the bank loan account de-
creased only s4O0, 900, and the weakness OF
the market last Saturday was rather dis
tinctly attributed to speculative disgust
over the fact that 30 trifing a curtailment
had taken place. The smallness OF the
reduction was commonly explained al
being caused by the workings OF the aver
age system under which the bank state
ment is compiled and it was supposed that
this week the bank statement would more
fully reflect the liquidation that was known
10 nave occurred. To-day's disclosure,
therefore, Of an actual increase in the Dan
was disappointing. The probable e~xplana-
ton OF the matter is, or at least was so re-
garded in banking circles. where a clear
idea Of the matter if anywhere should pre-
vail, that concurrently with the liquidation
In the security market here there had been
going on a transference Of loans on Ameri-
can stocks from London TO this centre n
that there had also been in progress a SINH
lar crossing of of obligations for purposes
incident to the end of the years financial
settlements by interior institutions; that is
10 say, interior banks in our own country
have, like the London banking houses, asked
the banks in this city TO take care tenn
--AE - l~--A s~-s
dent to operations in Wall Street that have
for some time back stood upon their books.
The figures of the bank statement az a
whole, however, were such as to bring the
bank surplus up TO IS, 500, 225, OF over
O. ,OOO,O 10 above the surplus at the time a.
year ago. No doubt the technical position
OF the market has been weakened to some
extent by the retirement of the short in
terest affected during the brisk rally in
stocks In the last two days, and it is not inn
possible that a resumption OF speculative
ventures for the decline was responsible
as much as anything else for to-day's fall
In prices. These ventures are obviously
facilitated by the fact that the floating
supply" of stocks in Wall Street is now some
what greater than it was a few months ago.
Many observers of the market were,
however, inclined to-day to the opinion
that one great cause for unsettlement at the
moment could be directly traced to the
disturbed feeling now so general in the
financial district over may be moder-
ately described as the botched and clumsy
method adopted by the Chicago, Milwaukee
and st. Paul Railroad Company in making
it's recent issue of stock. Other develop
ments of a similar sort, all proceeding from
the same source and all of a nature calcu-
lated to beget popular coldness and hos
tility toward the security market, have not
heen uncommon in the present year, and
the cumulative effect of these blows is
seemingly becoming apparent. The plan
as suggested and that is seemingly TO he
carried out. which deprives a number Of
small stockholders Of the st. Paul Railroad
of their rights to subscribe to the new stock
that has been authorized, is one of the most
outrageous and scandalous violations Of
equity In the history Of American finance,
and thai il should foster a sentiment adj
verse 10 the stock market as, a whole is
plain. There were recurring stories to-day
of acute trouble in various speculative
quarters, which seemed. however. to have
a little more definite origin than they have
had for some time past. Presumably, too,
there was still some anxiety as TO the prob
able course Of money rates on the coming
Monday. This will be the time when the
final calling in of money for the great dis
bursements the day following will take
place. and whatever elements there are
making for monetary stringency will then
exercise their full force. Among bankers
to-day the opinion was almost universal
hat no extreme stringency would be ex-
p~erienced, owing largely TO the probs-
bility that the leading banks will for the
purpose of the financial accommodation
of the public during the next few days not
hold with literal strictness to the letter Of
the banking law on the subject OF the main
tenance of a full rs per cent. reserve. IL
must be said, too. that this course in such
an emergency as the present seems entirely
justified. 1t has been time and again
shown in periods OF financial strain that il
the banks would lend freely, regardless for
the time being OF reserve requirements,
a large amount OF boarded money in the
hands OF private parties, kept for the pur-
pose Of being lent at high rates, would be
iuruadiatelv raIeaaod and the money min, n