The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1906-12-06


NEW YORK, Dec. 5.-The stock market strug-
geo with the money stringency today. but re-
fected clearly the difficulties Of the situation
ior spectators who are carrying stocks with
borrowed money. Loans were called from time
- time on q large scale by the banks TO reduce
their deposit liabilities in the measure Of heavy
drains that making their cash reserves.
Occasional Liquidation was forced by this pro-
cess The appearance OF the annual report OF
the Secretary Of the Treasury was the signal for
comprehensive recovery OF declines. leading TO
3 halt In the market al about last nights level.
The recovery was based on the assumption that
the Secretary stood ready 70 take steps to re-
!leFe the money stringeney. n accordance with
the strongly expressed views II the annual re-
port Of the duty incumbent upon him TO deposit
N the banks as much as can possibly be spared
~ surplus funds IL the treasury If business con
ditions require II, though 1t becomes necessary
10 pay the current expenses Of the Government
with checks on depository banks" But while
This language was accepted as an earnest Of
early action for the relief Of the money market
the relief was not announced. and the calling in
Of loans was an actual situation. The fact that
money conditions abroad also began 10 Tighten
again was regarded an additional factor in
favor Of probable action by the Treasury Depart
ment, as the Secretary was almost as emphatic
on the aiding to prevent hurtful stringency
abroad at home. Much interest attached to
the passage in the report which said:
The United States III afford to disturb
financial conditions in Europe, and if necessary
TO prevent il the present head OF the treasury
hanks condition that the banks in turn de-
post an equal amount abroad"
This was interpreted as an announcement that
the benevolent attitude Of the Treasury Depart
ment toward the import Of gold might be con
That the course Of money in New York and
the resultant eject on the exchanges has been
tending toward the further withdrawal of gold
from London is the fear of the London market
and this is regarded precuding any relaxation
81 the money situation In London before the end
Of the year. Not only is currency going from
New York 10 San Francisco 10 move the fruit
crop and 70 New Orleans TO move the cotton
crop but the drop in New York exchange at
Chicago TO 2 discount again marks q recurrence
ruling rates for money In this market Customs
collections are running very large the Govern
ment receipts in New York from that source
yesterday amounting to 81 2So $50
The loss OF banks sub-tressury operations
since the last bank statement now amounts TO
50 65l 600 The action Of the banks IN calling
loans needs further calculation.
New York Central was temporarily strong on
the Increase II the dividend rate. which con-
formed 70 expectations. Intima lions of addition
81 capital issues by Atchison and Norfolk and
Vestern foreshadowed the future reouire4n ents
from this cause on the money market. which are
expected to grow The urgency with which new
capital continues to be sought. in spite OF the
dnbcultes OF the money market, gives an I'M
preston Of undiminshed confidence In the per
msnency Of the needs which sought to be
supplied by this outlay. The effect is TO con-
ues- This sentiment YVES apparent, in fact. in
the stubborn in which stocks yielded to
the money market Inconvenience. The duh and
obstinate resistance was shown up 10 the clos
sng The 81 per cent call loan rate is the high
est since the first week in September, when
money went 70 30 per cent and the banks re-
Bonds were irregular. Total sales lpar value,
s. 050000. United States As registered, ad-
vsnced 4 per cent on call
New York Stock List
r. F. Hutton & Co. 400 California street
members OF the New York Stock Exchange, fur
nish the following list Of bond and stock sales
yesterday: