The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-10-28
MARKET WELL Held
Fear Of Hardening in 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 Replaced by Shaw's New Cir
cuIation-EIeetion as Factor.

New York. Oct. eL-Previous TO the
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 sell
ing operations that went on were con
quoted in almost desultory and apatheut
manner. The opinion was Ventured IA
high quarters yesterday that the END OF
the week bank return would not make
70 eao m vi as on the face Of
things appeared likely, and this dag
rosis was reinforced by the fact that
the money rates to-day and the DAY pre-
Ceding did not show the slightest ten
oeney TO harden. The view Of the case
thus taken was amply justified by the
figures Of the bank return as published.
Although It 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 q considerable portion OF the
speculative burden recently carried by
London, bank loans as to-day reported
actually decreased over S10.009eo-
~ cash by the banks was
nearly SL500060 or fully as great as had
been yesterday estimated, bat the bank
surplus, because OF the diminutiOn IN the
volume OF loans, was only reduced IN the
inconsequenJial sum OF $4,000 Bank
loans have been undoubtedly cUr1ailed
Lere il the week to some extent by gen
eral stock market liquidation yet prices
OF stocks are not on the whole material
IL lou U.eA-
and IL Is improbable that from this cause
alone such reduction of the loan ac-
count is supposed 10 have occurred
Advance Follows statement.
Il is altogether probable that the fall
ing or in loans is due chiefly to the fact
that trust companies and private lenders
have taken these loans from the banks h
large quantities Two views of the situa-
ton thus presented are, OF course. Iegiti-
mate. one that the financial position here
Is not at all inherently improved by such
a shifting process. and the other thar
= hat ms been accomplished strongly
emphasizes the elasticity and resilieucy
al general banking arrangements at the
Present time. No great enthusiasm was
uispiayld Ia the market after the figures
az the bank statement became public, al
though prices generally advanced. Tn
Mexican Central and Mexican National
stocks were especially strong, the move
uent being in logical consequence mani
4 silly OF the rise IN all OF the Mexican
stocks in The London market stimulated
~ the declaration during the week OF
large dividend upon the second preferred
stock of inc Mexican Railway Company,
= uich is solely dealt in in London.
The most striking feature of the days
market was. however. q sharp upward
movement i'm 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 Tor the purpose OF liking the quarter
j. dividend on the common stock, a1d the
movement I'm the steel shares to-day
therefore. led naturally 10 rumors that an
enlarged dividend distribution was i'm
pending.
The advance was otherwise accounted
for as due Ia knowledge that the state
ment of tho business operations o. the
corporation FOR The quarter ended Sep
Dber 81, which VIII pres mably also be
published on Tuesday, viii make an ex-
ceedingiv brilliant showing During the
week there were few Developments OF
financial Importance, and such as did
occur did not seem to provoke any great
amount or either buying OF selling Of
stocks
advance Is Discounted.
The advance ia the Norfolk ana West
can Railways dividend rate on its com
mon stock from TO s per cent had
been commonly anticipated, and the ten
dency OF spectators was 10 regard the
steps taken Icy Secretary Shaw look
ing forward Co an increase iu Tie c0un-
try's bank loan circulation as EFF 10
great moment In this view spectators
are clearly mistaken.
Up 10 the close Of business hours to-
cay application had been made for The
taking OUT of Sl3.lO00J OF the lSG0bJ|
new circulation authorized by tho Scc-
retar5. and it is wholly probable that
the entire sum Of money indicated VII.
be added % the circulating medium. This
means practically the advent Of Just s.
much new money into tho country. ans
rs the greater portion of IL viii be IN
notes of small denomination it VIII serve
much 10 aid IN the crop moving and 10
abAC The drain OF currency from the
Last to the West that is still Eoing
On.
Election prospects have occupied the
attention of Wan street To some
extent, bat IL hardly seems as i'll
they have exercised any important in
1iuencc upon values. For one thing. there
IS no doubt that there has been during /
the week q good deal or liquidation Of
stocks by the plunging room tr1dine /
speculative element and that comms- /
sion houses Is q result OF this are in /
strong shape.