Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-18
Practical Stagnation Marked
the Week End.
A FAIR BANK STATEMENT
But Offered No Great Promise for
Future.
PROFESSIONAL TRADERS BUSY
Dealings the Past Six Days shrunk
From Discoura cement Over Failure
Of Recouping Possibilities.


tuit.GD. The market having SUNK INTO II
state Of practical stagnation. The bank
statement however, was not considered to
promise any large improvement in the con-
d.uon o. the money market. The cash
item showed a gain Of something over
million dollars, which was better than ex-
pected. bat the loans at the same time in
creased s. $1,000.
The resulting growth In the deposit item
and the expansion of the reserve require
meut resulted in a shrinkage IN the surplus
of S59S.5I5. The change in the loan item
may have been Influenced by the shifting
Of accounts incident TO the large dividend
payments on Wednesday, but the repay
meDt OF maturing obligations to foreign
borrowers. which was reflected IN the
week s demand for foreign exchange, Is sup
posed also 70 have been transferred to some
extent TO the local banks It is pointed.out
that with the payment next week Of the
final iHstallmeDt on the last Japanese loan
there Will be on deposit Ia the credit of that
government IN London, Paris Berlin and
New York something like $3.50 ooo,0o0.
The withdrawal OF those deposits, which
have been IN progress within the last few
weeks and which IS expected to continue,
IS thus seen TO have a very wide Held for
extension. with corresponding possible eff
feet on the money market, where these
5unGs are pIaced at present. Bank clear
lDgs for the week throughout the country
show a decrease as compared with The DOR
responding week Of last year. This is the
FIRST decrease reported IN long period. ard
IS due entirely to the showing of New York
and other large reserve cities. The days
dun stock market was as barren Of fea-
lures as the days news was Of incident hav-
ing any important financial bearing
Total sales OF bonds par value $3.50, 00O
Professional Traders Busy.
Stock operations have lapsed this week
almost entirely into the hands of profess
sional traders. The narrowing and alter
mating fluctuations Of prices have marked
the inadequency Of this class Of dealings
10 move prices far from fixed level in the
absence Of any large participation by genu-
inc buyers or sellers. The volume of deal
ings has shrunk with the encouragement
of effecting any profitable alteration in
prices The level OF the market has tended
toward stability. Necessitous liquidation
seemed 10 be completed, but clements OF
uncertainty IN the outlook were sufficient
TO deter any new buying of securities.
The principal uncertainty has centered
about the money situation. Interest rates
eased IN response 20 the deposits OF gov
eminent funds with the national banks and
the engagement OF something over a mil
lion dollars In gold in London for shipment
20 New York Hopes were INDUCED that
the period of restriction was passed, but
the later events OF the week disappointed
this hope. The engagement Of gold IN Lon
don was believed to have been effected
with some special advantages aside from
general exchange conditions The opera
tiCu led 70 defensive measures by the Lon
don money market which, together with
general hardening Of money rates On
all foreign money markets precluded the
extension Of the movement.
Money rates are held firm abroad by the
uneaslness over the outcome Of the Mo
roccan conference and the prospect that
with the clearing up Of that question Rus
sia VIII be an applicant for large loan.
japanese fiscal operations are an influence
also, direct Withdrawals OF japanese funds
on deposit 81 London and New York being
supplemented by shipments OF gold from
India on behalf Of Japan against which
gold IN London is transferred TO the ac-
count Of the Indian government The eff
feet Of our favorable position in the ner-
chandise exchanges Is thus impaired al
though the February foreign trade state
nent shows an excess value Of our reports
over imports Of S37 OIL 1866 compared with
only 81. 1s6.369 for the preceding February
An additional Cnscttlug influence is the
large sums borrowed from foreigners by
New York. Heavy maturities have been
falling due Of this character during the
week and the demand for exchange for re-
TntttanCe on this account has contributed to
Tie violent recovery IL that market Div
sCeuds payable n New York on March IL
were estimated at over $4,000 coo includ-
lag the 100000 Standard OIL dividend.
Local Resources Squeezed.
Preparation for these disbursements
squeezed the local resources and led to the
. per cent call loan rate. being the highest
since TIE opening week Of the year AS the
interior spring demand for currency Is yet
undetermined the outlook IN money is SO
Ear from clear as 70 exercise a marked re-
pressiye influence or the speculative spirit.
The progress OF the proposed legislation at
Albany fixing cash reserve requirements
upon the trust companies indicates that
preliminary Accommodations by those com
panles may be going OF 10 comply with the
expected law,
There is much discussion heard In the
financial district on the sentiment mani
Tested IN the national and state Iegisla-
lures toward corporations.
The decisions announced by the Supreme
Court on Monday bearing on the rights of
inqu.sitiOn 10y state officials into the af-
fairs OF corporations were accepted as I'M
portant extensions Of ths defined limits OF
such powers. The decision by the same
court on municipal powers over traction
privileges IN Chicago precipitated violent
declines n the stocks affected. The pas
sage Of the bill limiting the rate for gas
IN New York 10 50 cents caused u parallel
decline In New York gas stocks and slim
Mated interest IN the whole problem. The
railroad rate regulation embodied in the
bill before Congress and the continued agi-
tation in the life insurance field over cor
poTation abuses have intensified the effect
OF the matter on speculative sentiment
with an undcterminabe but undoubted par;
in restricting the speculative spirit in the
stock market.
The Miners Trouble
The exchanges between the parties seek
ing settlement of labor conditions in the
coal industry have not yet defined the final
outcome OF that question, and the uncer-
tainty Is a disadvantage to the market for
stocks. The halt IN the demand for future
requirements in the iron market leaves the
outlook In that trade undetermined, in spite
OF the high rate Of present activity. Rail-
road earnings are maintained at a high
level. but the ratio of increase over last
year Of gross earnings reported is not as
great as during February. The stormy
weather of the present week promises some
impairment of the extremely favorable op-
Grating conditions, which have been a fac
tor in the winters favorable comparisons
former years.
Disputes over passenger rates between
New York and Chicago give an impression
of disturbance in that field. A yolun-
tary reduction In freight rates by western
and eastern railroads as a concession "a
puDlic opinion is reported under discussion
by railroad officials. sharp drop i'm the
price of cotton is looked 20 TO stimulate
Co. h.ax ~Nyzer so f,a@ -.