Los Angeles herald., 1906-09-25
BY Associated Press.

by Associated Press.
NEW YORK, Sept A.-Disturbed SEN
tment over the money outlook induced
considerable selling pressure on the stock
market today and 1t was not until accu-
mulated selling orders had been worked
off to some extent that recovery set
in. The rally had about wiped out the
carly losses py the middle OF the after
noon.
The early selling was reinforced to a
considerable extent by short selling for
account of professional bear traders.
Their operations were encouraged by u
misleading OF the significance Of the sub
treas"ry hgures, which showed on their
face a withdrawal of $4l2,OO0 from the
banks since the bank statement.
The inference that the banks were
the bank statement was, however, un-
warranted The false impression is due
10 the extraordinary amount OF confusion
i'll accounting caused by the operation
TO importing of gold.
The apparent loss by the banks on sub
treasury oDera tions is due to repa yments
of gold for import in accordance with the
agreement of the banks when they should
receive their consignments of gold
shipped But the repayments are made
with the newly arrived gold and are not
withdrawn fromsth present cash reserves
of the banks, as the sub-treasury ac-
counts seem to indicate. Some of the
professional selling induced by miscalcu-
the dav and helped to the rally.
There was not much change i'll the
money situation, or, rather in the pro-
cessien-of eVeRes whichLis drawing tighter
the money markets. The weekly arrival
of South, African gold in London fur
nished material for New York $ demand,
which yielded an additional engagement
of about a million dollars There were
no Withdrawals from the bank OF Eng
land for New Yorks account and no
further supply was secured I'm Paris The
gold adv
the open market rates a fraction. Dis
counts hardened also in Paris and Ber-
lin and expectation was reported of an
ether rise i'll the official rate of the i'm
peria bank of Germany this week.
While the official rate at the Bank of
England remains at per cent, that in
stitutiOn demands Az per cent on Ameri-
can bills and . per cent for money. The
prospect, therefore is for much smaller
engagements of gold this week than last,
Routine sub-treasury operations also are
not ilB the proportion suggested by the
wrong inclusion of the repayments on
gold imports.
itOr at the clearing house this morning
to the extent of $S6S923. The principal
factor in this showing was large trans
fers of deposits due at interior points.
banks of the interior drawing on the New
York correspondents to pay obligations TO
the government. A deposit of $150,000 at
the sub-,treasury was for the purpose Of
teegraphic transfer to st. Louis. The
scarcity of funds in the time loan mar
ket continued. In view of these condi-
tions the conviction grew that the treas
ury relief for the money market was es-
sential to ena BILE 1t to meet the October
demands upon it. The belief that such
measures were imminent was general late
in the day and contributed largely to the
improved tone of the stock market. The
late recovery became decidedly strong.
but the only stocks to yield any consid-
cradle net gains were the Hartman Pa
cifics, Atchison, Reading and Amalga-
mated Copper.
Bonds were easy Total sales, par value
Sl.S50,000
United States bonds were unchanged on
call.