The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-10-28
MARKET WELL HELD
Fear of Hardeningrin Money
Rates Is Not Realized.
BANK STATEMENT FAVORABLE
Following London's Advance in
Rates New York Is satisfied with
ResuItS-MOney for Crop Moving
Being RanIaceG by shaYv's New Cir
cuIation-EIection as a Factor.


publication Of the weekly bank state
ment to-day only minor changes oc-
CURED IN the prices OF stocks in the Sc
curity market, and the buying and SELF
ing operations that went on were con-
Quoted IN almost desultory and apathetic
manner. The opinion was ventured IN
high quarters yesterday that the END OF
the week bank return would not make
SO 80 "a wi as on the face of
things appeared likely. and this dag
nosis was reinforced by the fact that
the money rates to-day and the day pre-
ceding did not show the slightest ten
dency to harden. The view OF the case
thus taken was amply justified By the
figures Of the bank return as published.
Although Il was the common supposi-
ton that bank loans during the week
had been enlarged. owing to the heavy
selling Of stocks recently made here for
London account. the net effect Of this
being, OF course. the transfer to this
center Of a considerable portion OF the
speculative burden recently carried by
London, bank loans as to-day reported
actually decreased over S21.e0o0oa
- cash by the banks was
nearly sI,509,000. or fully as great IS had
been yesterday estimated, but the bank
surplus, because OF the dimiuUtion in the
volume Of loans, was only reduced in the
inconseqUential sum of $4,000 Bank
loans have been undoubtedly curtailed
here in the week 70 some extent by gen
eral stock market liquidation yet prices
OF stocks are not on the whole material
" lower than they were a week ago.
alone such reduction Of the loan ac-
count is supposed to have occurred.
Advance Follows Statement.
II is altogether probable that the fall
ing of in loans is due chiefly to the fact
that trust companies and private lenders
have taken these loans from the banks IN
large quantities. Two views OF the siJua-
ton thus presented are, OF course, Iegiti-
mate, one that The financial position here
IS not al all inherently improved by such
q shifting process, and tho other that
what has been accomplished strongly
emphasizes the elasticity ana TesilencV
of general banking arrangements at the
present time, No great enthusiasm was
displayed in the market after the figures
of the bank statement became public. OF
though prices generally advanced Th~
Mexican Central and Mexican National
stocks were especially strong, the move
lneat- being In logical consequence mani
testify OF the rise Ga all of the Mexican
stocks in the London market stimulated
by the declaration during the week OF q
large dividend upon the second preferred
stock OF the Mexican Railway Company
which is solely dealt in in London.
The most striking feature OF the days
Let
movement in the last few minutes Of trad
ing in the United States steel common
shares The directors Of the United
states Steel Corporation meet next Tues
day for the purpose of liking the quarter
~ dividend on the common stock. and the
IN the Steel shares to-day.
therefore, led naturally 10 rumors that an
Enlarged dividend distribution was ina
pending.
Tho advance was otherwise accounted
for Is due Go knowledge that the state
1ucnt OF the business operations of the
corporation for the quarter ended Sep
fcmber ~. which viii presumably also De
published on Tuesday VIII make an cx-
esediaglS brilliant showing. During the
week there were few developments Of
financial importance. and such as did
occur did not seem 10 provoke any great
amount Of either buying or selling Of
stocks
Advance Is Discounted,
The advance in the Norfolk and West
ern Railways dividend rate on its COM
mon stock from 1 to 3 per cent had
been commonly anticipated, and the ten
lency Of Spectators was TO regard the
steps taken by Secretary Shaw look
ing forward TO an increase in the Coun-
try's bank loan circulation as of no
great moment In this view spectators
are clearly mistaken
Up to the close of business hours to-
iay application had been made for the
taking out Of S1S,600.000 OF the sis 0c0 go
new circulation authorized by the Sec-
rotary. and it is wholly probable that
he entire sum Of money indicated Will
be added to the circulating medium. This
means practically the advent OF Just 50
much new money into the country. and
IS the greater portion Of it viii be in
notes Of small denomination il viii serve
much 20 aid in The crop moving and to
Ibate The drain Of currency from the
East TO the West that is stin going
on
Election prospects have occupied the
of Wall street to some
Xtent, but Il hardly seems as if
they have exercised any important in /
iUcnCe upon values. For one thing. there
is no doubt that there has been during T.
the week q good deal Uf liquidation of
stocks by the plunging room trading
speculative element, and that commits
sion houses as i result OF this are in 4
strong shape.