The Washington herald., 1906-11-11
PRICES FORCED DOWN
ShaW's Refusal to Aid Mar
ket Is the Chief Cause.
BANK STATEMENT ALSO HURTS
That There Was Not a sharp Decline
Proves that Strong support Is
Given by Powerful InteTests-The
Railway Changes, Especially that OF
Illinois Central, Closely Watched.

Kew York. Nov IA weekly bank
statement showing that the surplus re-
serve of the local clearing house lnst-
lions was sf,5o0009 below the legal mini
mum, and a formal announcement by the
Secretary Of the Treasury that be did not
propose 70 take any steps TO- the relief
Or the money market until conditions Of
strineency became more pronounced than
they were. might very well have sufiiced
10 bring about much greater decline to-
day in prices Of stocks than actually oc-
cured; and had speculation of late been
active rather than almost dormant. II
is unQrestionable that sharp break In
tie stock market would have followed.
That g decline of this character did not
take place, and that prices only slightly
receded upon such unfavorable news, af-
fords, OF course, strong evidence that the
market IS under assured control. and that
the people who arc now carrying stocks
Tor. speculative purposes arc IN the main
those who have already amply provided
themselves with financial resources for
doing so.
:
r.cspated, and prophecy regarding il WIS
surely enough made IN the sharp ad-
vance in call money rates yesterday. It
was known that there had been during
the week q further shifting % loans from
the local banks to institutions whose
transactions do not appear on tho clear
sng house sheets, that Is TO say. mostly,
10 private and out-of-tOwn lenders.
Able 10 Meet Demands.
This process has been gong on, in
TACT. ever since time and call money rates
rose above 6 per cent. and By means Of IL |
the banks 1T this center have been able
10 meet the heavy demands made upon
them recently for the means OF making
payments Cor the large quantity Of stocks
sold in this market in the last fortnight
for London account. Loans we've, there
fore. to-day reported as having decreased
N.c72, 100. Il was also realized, howevec,
that through the operation Of FariOus
causes to-Say's bank statement would
makeup those losses OF cash By the
banks that have actually taken place
during the last two or three weeks, and
have not been fully revealed in the week
Is clearing house exhibit. Therefore the
decrease in cash holdings shown BY the
banks IN 20 days report Of S, ST, 0O0 or
S5.o00000 more than the largest public es-
innate thereof, made yesterday, was by
70 means unlocked for by those having
access to good sources Of Information
snd the net result OF g deficit of $l.jIt. Ia
IN the . per cent surplus reserve ve-
CURED TO be carried by the banks, took
fcw people by surprise.
Hoped for Aid from shaw.
It has all along been the hope Of WaH
street, however, that If such u state OF
Affairs as this was shown. the Secretary
OF the Treasury would again come 90 the
atd o. The money market, rs he has done
on many occasions IN the last two months;
ana this hope. it may be said. was not en-
tireIy dispelled by the Secretary's out
giving on the subject to-day.
~ any rate 10 perturbation worthy OF
notice occurred In the financial quarters.
and this in the face OF the fact that the
bank reserve here has Ions remained be-
low the legal limit, and THAI IN one way
or another = money situation that has
reached this point usually rapidly rights
itself. Fo- one thing. the London financial
settlement begins next Monday and viii
soon be over, so that the pressure 10 remit
money abroad, which has been the chief
source OF the strain upon banking institU-
tions here during The week, VIII cease.
There ore 10 longer any acute fears Of
q further advance n tAc Bank OF Ems
l&nd's discount rate, as the banks weekly
report OF condition. published last Thurs
day, showed that It's reserve IS charging
ina very satisfactory manner. While &C.
tUal cash has not been transferred from
tae B@nk OF France 20 London, the French
bank has not released its grip on credits
IS 70 ease the situation in London in an
equally satisfactory way, and ths entire
foreign financial position appeared 20 be
strengthening.
Railway News Important.
Aside from the election result. the de-
position OF Stuyvesant Fish frou The
Presidency Of the Illinois Central Rail-
nay Company and the substitution f.
his place Of one representing she Harri~
SER. or Uaion Pacific interest. and q
large increase in the wages OF employees
by the Pennsylvania and one or TWO ~
tie other leading railway systems have
been the eveats OF importance Of the week
10 financial circles.
Price movements IN the stock market
have been almost without consequence.
AGnor announcements have been those Of
80 Increase OF preferred stock capit9IIza-
ton b. the American Wooden Company,
ard of q large and ioug-anticipated stock
dividend By the Pullman Palace Car Com
paUy,
Favorable weather conditions have
stimulated trade n every direction, the
mercantile agencies report that financial
collections were never better. and the
general prosperity Of the country re-
mains without shadow, Even in Wall
street. where SPECTATORS for the fall have
endeavored to get up as much pessimism
as possible over the money situation, con-
fdence Is practically universal Of IN irn-
E-.nrlne. market fn- eac..ritias latar On