The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-08
FINANCIAL AND COMMERCIAL.

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Prevailing monetary conditions we're
pnoh a. to produce relative dulness to-day
IN Stock Exchange dealings. The indioa-
etons were OF course very plain for an I'm
eauRlly u~nfavorable bank return, and this
Resulted before the bank return was pub
lhhed In an indisposition on the part of
epeCulAtora to extend oommitnshts in the
zDArket In either direction. Opening prices
were about where they closed last night,
but the market soon developed heaviness,
without, however, any notable pressure
Of liquidation. There cou6h be no qualif-
cation Of the view Of the bank statement
when Tia figures were given out in the mid
die Of the second and final hour Of business
chat 1t made a poor showing. The loss in
cash sustained by the banks during the week
was S7,904 200. This sum vas only very
olightly in excess of the lowest amount
CO the loss as estimated yesterday,
henoe was In no sense a disagreeable sur
prise. But, on the other hand, bank loans
were reported as increasing in the week
g. 06, 500, whereas a decrease in the loan
aocount had been hoped for. This resulted,
therefore, in a decrease in the bank surplus
OF 81 8o1, 900, bringing the surplus down
70 &a,Ge0,S26 below the legal minimum and
TO tho lowest amount at which the surplus
has stood at this season Of the year since
1888 and to the lowest total sum at any
time since November, 1899. What has
happened In the financial district in the
last six days is, apparently, that interior
banking institutions have not only with
drawn cash from this centre TO a great ex-
tent, but have also curtailed here their
extensions Of credit. This has thrown
the burden Of making loans, or a greater
share Of the burden than has been the case
for some time, back upon the local banks,
20 that the Clearing House institutions,
losing money at one door and being unable
to Sshift loans" out Of another, have been
forced to cut into their reserve. The judg-
ment in the stock market to-day concerning
this state Of affairs was, however, as it
has been throughout the week, that the
condition was likely to be of brief duration.
At any rate there appears to be no fear in
Wall Street Of any decided fall in stock
anarket values by reason of whatever money
s~tringency exists or is likely to exist. After
the condition Of the banks was made known
to-day the market for securities was a little
although not greatly weaker and there
was only q dribbling quantity of stocks
offered for sale. Prices as q rule closed
above their lowest under a covering
movement by spectators for the decline,
! and In few instances did a fall of a point
or more take place In any Of the active
shares. The particular firmness Of Penn
sylvapia stock, as noted yesterday, was
again in evidence. OF news affecting the
market aside from that contained In the
bank return there was nothing Of impor-
tance save the announcement Of a further
transfer Of $3.50 900 by the local banks
through the Sub-Treasury to San Francisco,
presumably on account OF the Japanese
loan. This transfer was, ~curiously enough.
Of exactly the same amount of money as
it was said was engaged In Europe yester-
day for import by our bankers.
The strength Of the money market and
the labor difficulties in the coal mining
districts on the one side, and on the other
the universal testimony as TO the pros
perity OF current business, the disappear
ance Of the Moroccan diplomatic imbroglio,
the reduction of the Bank of England's
minimum rate of discount to 81 per cent.
and an easier tendency in money rates ale
most everywhere in Europe, greater firm
ness In the iron and steel markets, highly
satisfactory news regarding the progress OF
the winter wheat crop n evidence of a
reaction from the municipal ownership
ideas as afforded in the Chicago city cleo
lions were the features Of the business
week. From all OF these a net balance of
optimism was unquestionably drawn by
the majority Of those interested in the Sc
curity market. 1t is admitted by practi-
caIly all observers that the prevailing finan-
cial temper is such that if on Monday, for
instance, there should be any decided re-
Taxation In money rates there would be an
immediate and very considerable advance
Ia security valuations. Fundamental cir
cumstances, in other words, plainly seem
TO Justify a higher range of market prices
than now exists, and these prices are only
held down by the temporary inconveH-
epces in which borrowers on Wall Stroes
collateral find themselves. The present
price of sterling exchange here h at 80
low a point that il is a matter Of small doubt
that were it not for the Russian loan that
Ia now overhanging the European financial
markets our country would be in receipt
by every suitable transatlantic steamer
Of gold imports from foreign capitals. 1t is
stated. however. that the Russian borrow
ing will be announced, .that'istto say, will
be practically out of the way Immediately
after Easter. From theL one European
bankers should be in a position to listen
very willingly to our requests for funds,
nor can 1t be considered that any such outgo
of cash from our local banks as this week
occurred is likely to be repeated. There
ere many reasons, indeed, for believing
that owing TO the average system on
which the weekly bank statement is COM
piled the bank return to-day represented
the position Of the Clearing House instE
tutions as much worse than it really was.