Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-04
Week End Marked by a Gen.
eraI Sag of Prices.
THE S1o,oO0,0O0 DEPOSIT
Treasury Action Caused Only Tenn
poraTy FURRY.
WEEKS HEAVY LIQUIDATION
WEEKS HEAVY LIQUIDATION
Poor Demand for Absorption Carried
Figures Down sharply-Railroad
Earnings Remarkable.

up of prices in the opening dealings today
reaching TO point upwards in many OF
the international stocks and specialties.
Within ten minutes of the opening, how
ever. a sagging tendency set in which con-
tiHCed with only temporary interruption
up to the closing of the two-hour session,
when prices were at the lowest and still
Cecliniug, losses having been quite gener-
ally substituted for the earlier gains.
The little squirt at the opening was
caused by the decision of the Secretary
of the Treasury to deposit Sl0,000,O00 at
the great banking centerS to offset the ef-
feet of the heavy payments to the govern
ment on account of the ) per cent bank
redemption fund last week. incident to the
expiration of the currency redemption pc
riod on old bank charters, which were re-
newed in large numbers three years ago.
The later action of the market was based
to some extent on the conclusion that me
amount of relief thus promised for the
money market would have little effect on
interest rates. There was a suggestive adj
vance in foreign exchange rates today fol-
lowing the Secretarys announcement,
which raised the question TO how far
resort to foreign banking facilities might
DC precluded by the Offering of the addi-
tioLal supply here.
Bank Statement Ineffective
The bank statement proved equally IN
the market, although the contraction OF
loans and the consequent reduction of de-
posits and of the reserve requirement
served 10 protect the surplus for the banks
from any but a nominal inroad by the
weeks Withdrawals of cash. These proved
about what was expected, and as some OF
the heaviest shipments to the interior were
made on Thursday and Friday, the effect
upon the daily averages may be expected
to be thrown over into next weeks oanS
statement. The subtreasury had a credit
balance at the clearing house today, fndl-
eating a continuance or the drain from the
money market to the government. The
comparatively favorable bank statement in
dicated that the conservation of the surplus
reserver was dependent upon loan contrac-
ton. With the tendency still running
against the cash reserves OF the banks and
the prospects of further withdrawal OF
credits TO keep pace with the shrinkage in
reserve, speculative sentiment was dis!n-
In the stock market. The later pressure
upon the market centered particularly upon
An1algamated Copper, as was the case yes
terday.
Total sales of bonds. par value 81 44o 600
Liquidation and Poor Demand.
There has been some large liquidation of
speculative holdings of stocks this week and
a poor demand to absorb 1t. so that prices
were carried downward sharply. The re-
er rates for call and time loans have been
credited with large influence on the ac-
ton of the market. Their part has been
supplemented by other factors lying not so
near the surface but of far-reaching effect
on sentiment. Current conditions of trade
and Industry are not among these, as all
reports combine to show an extraordinary
condition of prosperity in all quarters
incoming returns of railroad net earnings
FOR January show increases over those of
the preceding January OF almost unprece-
dented extent being doubled, and in the
case of Canadian Pacific, tripled in the
comparison. The reports Of weekly gross
earnings for February show a high ratio of
increase well maintained. The comparison
IL affected by the extremely favorable
operating conditions, due to the open winter
this year. which keeps down the proportion
OF expenses to gross traffic, while for this
period last year the blockade and extreme
cold made conditions as much against the
average. This may be taken into consid-
Grafton In estimating the bearing on values
of the showing OF earnings.
But greater weight attaches to the fact
that the conditions now being reported en-
tered largely into the calculations of
operators IN the market during the period
or active advances in prices of stocks so
thIt their effect has been already felt as. a
STOCK market factor. The prospects for fii-
ture business may be assumed to plavs a
larger part IN the present action of the
stock market. Speculative sentiment re-
earning the future is eXamplified in the
tone in the iron and steel trade in which a
trade authority reports that some consnrn-.
eiS nave caught what they believe to he
the cue that the top has been reached and
are Withholding orders. while there are in
ulcatons or weakness in the pig iron mar
ket' created by small minority Of uneasy
sellers 1t is this undetermined outlook
Whlch influences the speculative market
rather than the enormous current consume
ton. N'i'' Nii'p-
Market Sensitiveness Explained.
rms consideration is offered 10 explain
the sensitiveness OF the market To the
weeks maximum call loan rate of : ner
cent In contrast with the impunity of the
market from serious damage from the cali
iOdh rate or 10 per cent OF last Decem-
Der. But II is TO be considered also that
the comparative Indifference of the mar-
ket TO the December money stringency was
based also upon a confidence that stands
at that ume would be OF short duration and
10 be followed by a long period of easy
money conditions which would invite an
active speculation in stocks and readily
absorb the large holdings taken on al that
tHne. mat the expected ease in money
conditions mas not come TO hand is due in
an important degree to the great extent
to which the borrowing for speculation at
that time anticipated the present resources
OF the money market by large borrowing
on time. both In domestic and foreign bank
ing cepters- The maturing OF many of
these obligations comes to meet the effect
OF the spring influx Of money to reserve
centers.
All accounts agree also on the extraor-
binary activity OF the demand for credits
in all departments of trade and industry.
and of expansion of enterprise The domes-
tic Interior finds ample employment for
banking resources and make demands upon
deposits In the New York banking reserves
TO meet them. thus expanding the volume
of the drain upon New York usual at this
period. Business activity extends TO the
foreign trade and enormous imports re-
suit In heavy customs payments at New
York and large payments by the New
York banks into the subtreasury at this
point. The huge new issues OF bonds and
stocks by existing railroad and Industrial
corporations measure the expanding ten
dency of enterprise.
New interpretations of a million dollars
each and upwards for February, while fall
ing below January, are the largest for any
February. and the total OF such incorpora-
lions for the two first months of the year
reach total as large as for the whole year
of 1908, a large proportion being repre-
scented by new copper mining and electrical
companies.
Added Impression on Sentiment.
The parallel suggested by these condi-
lions with the period of ''undigested secu-
rites" of unsrateful memory In Wall
efroaf r,atrac en- odaad {v.NraSS,o,, ar, sa,,tt-