Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-07
Weekend Price Movements
Uncertain and Narrow.
SLOW DEMAND FOR STOCKS
DESPITE a Relaxation of the Money
Market.
ENORMOUS TRANSACTIONS OCT. l
Bank Statement Widely Out OF Line
With All the Forecasts-Trade
Reports Gratifying.
SLOW DEMAND FOR STOCKS
ENORMOUS TRANSACTIONS OCT. 1

ton of the announcement of the terms of
the ore deal. which was made after the
market closed proved short-lived today.
The market relapsed almost Immediately
after the opening into the listless and
sluggish condition into which it has been
falling lately. The stocks Immediately con-
cerned in the ore deal closed lower all
round and We're at no time much higher
than last night. United States Steel was
freely supplied in the neghborhood OF 40,
although not urgently pressed for sale be-
low that. In view of the accurate outlines
of the ore deal which have been current
for a long time and of the many times
prices have been advanced on the strength
of it this behavior of the stocks. was not
surprising. The restraint on the rest of the
list was partly sympathetic. There was a
demonstration in Erie, apparently intended
to help in holding the market. General
Electric advanced sharply, with rumors
of a control of American Locomotive, but
the general market proved heavy.
This tendency emphasized after the
appearance of the bank statement, which
proved widely out of line with all the fore
casts. Cash holdings decreased $3I9I,300
where an increase of between eight and
nine millions had been estimated. The
heavy operations of October l were belle
to have thrown the averages out of line
with the actual condition of the banks
The growing of the money market was
considered a more reliable index of con
ditions. The Bank of England today lost
upward of $6.JOO.OO0 withdrawn for Egypt
Russian finances also continue disturbing
influence abroad Diversion of attention
to the automobile race was considered
partly responsible for the apathy of the
market.
Total sales of bonds, par value, S1,096 600
Hating and Irregular.
With the satisfaction of the extraordinary
requirements of the October 1 settlements
the money market in New York and of the
world has sensibly relaxed. The stock mar
ket has had some benefit from this course
of events, but the demand for stock has
been halting and irregular and the price
movement, in consequence uncertain and
narrow.
Fears that the pinch in the money market
would be extended beyond the first of the
month proved unfounded. Money call
went no higher than per cent on Monday,
and from that time receded progressively
day after day to an average below per
cent.
Banking figures were a testimony to the
enormous transactions completed on the
first of the month Clearing house ex-
changes in New York Monday were the
largest with three exceptions in the history
of the clearing house. The weekly returns
of the Imperial Bank of Germany reflected
the great pressure upon those institutions
for credits. In the case of the Bank of
England a severe depletion of resources was
the result the proportion of reserve to liza
bilities falling below the traditional limit of
safety. which Is 40 per cent, to less than 80
per cent. Yet the bank authorities re-
Trained from advancing the official discount
rates on Thursday, as they were expected to
do. and discount rates receded in the open
markets of London, Paris and Berlin.
Bank of England Departure.
The Bank of England relaxed it's recent
policy of severe discrimination against the
stock market class of borrowers. In spite
of this letting down Of the bars the demand
of New York upon London for gold re-
Taxed and foreign exchange rates here adj
vanced. All this was accepted evidence
that the great strain on banking resources
reflected in the banking figures represented
past requirements, and that the great
sources thus tied up were flowing back
promptly into the channels of the money
market
| The New York market has felt the bene-
fit. in addition. of the deposit of govern
ment funds with the national banks. The
event has proved that many of the interior
banks to which were offered portions Of the
S26.0O0O00 of government fuRds did not
avail themselves OF the preferred facilities,
and the treasury authorities have allowed
the New York banks to take over the
mainder thus uncalled for by the interior.
The causes of the halt in the securities
market in face of this relaxation of the
money market are not clearly defined. Re-
ports of business conditions show unre-
hitting activity and Astounding prosperity
in all departments. 1t has been the COM
money was the only restraint on an ami
mated speculation in stocks to reflect the
rising earnings Of corporations.
Accumulated Stocks.
Some part OF the explanation lies in the
large extent to which powerful capitalists
have accumulated stocks in defiance of the
recent stringency in money and are desir-
Gus OF distributing some part Of the hold
ings to meet demand attracted by the rising
of money 1t Is evident although. that the
dimensions of the demand thus attracted
are not important enough to afford "a favor
able basis for such distribution. This con-
dition is attributed partly to the wide infor
nation of the extended position in the
stock market of operators hoping to effect
such distribution of holdings, which be-
gets an attitude of suspicion toward the
market on the part of the public at large.
II is partly due also to the diversion of
| speculation to other fields, especially real
| estate, mining ventures and others, and to
| interest in fields of profitable business ac-
. tivity which absorb capital and attention.
1t is true also that the immediate relaxa-
| ton of money does not entirely allay mis-
glvlnRS over requirements yet TO be met
| The principal strain upon the money mar
kets of the fall has to be met for the NOV
ing Of the cotton and corn crops.
In the case of the cotton crop the gov
eminent report of deterioration published
this week and which did not allow for the
damage by the great tropical storm has
caused some revision of estimates of the
size of that crop. which was reflected in the
advance in the cotton market of the week
Some of the influences of more immediate
effect speculative sentiment also have
been adverse. The long-drawn-out negotia-
ton over the disposal of the Great Northern
ore lands to the U. S. Steel Corporation re-
suited in some fears at one time of mis-
carriage of that important project. Re
ports were circulated during the week with
q semblance of authority that differences
had arisen over the settlement of details.
| There was much speculative disappoint-
ment also over the Atchison dividend. which
was expected with great confidence among
many operators to be at per cent in
stead OF the per cent rate. The action of
the directors dashed the spirit of the specu-
lative element, which had looked upon the
Union Pacific dividend as herald of n pol
icy of extreme lberality in distribution OF
| profits to be adopted by all railroad authori-
ties. Political uncertainties have come in
for consideration and the prevailing note of
st. ling md otrrIir