The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-28
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SATURDAY, OOeooor -,
PrsvBsua 10 The publication Of the weekly
bank seNtSment to-day only minor changes
occurred In the prices Of stocks In the
.acurity market and the buying and selling
oparatiops thai went on were
In a me.t desultory and apathStAc manner.
The opinion was ventured in high quarters
Yesterday that the end Of the week bank
return would not make so bad a showing
AZ on the face Of things appeared likely,
and this diagnosis was reinforced by the
fact that money rates yesterday and the
day .precedink did not show the slightest
tendepcv 20 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 supposition
that bank loans during the week had been
enlarged owing to the heavy sales OF stockr
recently made here for London account,
the net effect of this being, OF course, the
transfer to this centre OF a conslderaote
portion Of the speculative burden recently
carried by London, bank loanss AS to-day
reported actually decreased over $50, 900 900
The loss i'm cash to the banks was nearly
81 SOC, 600. or fully as great as had been
Yesterday estimated, but the bank surplus
because of the diminution in the volume
of loans was only reduced in the iuponse-
ouential sun Of 1921, 900. Bank a have
been undoubtedly curtailed here in the
week TO some extent by general stock market
Iimidation. vet prices Of stocks are not on
the whole materially lower than they were
a week ago, and il 10 improbable tnat
from this cause alone such a reduction oil
the loan account as has been shown could
have occurred. 1t is altogether probable
that the falling 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 situation thus presented are, OF course,
legitimate; one that the financial position
here is not at all inherently improved by
such a shifting process. and the other that
what has been accomplished strongly
emphasizes the elasticity and reslliency 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,
although prices generally advanced The
Mexican Central and Mexican National
railway stocks we're especially strong, the
movement being in logical consequence
manifestly If the rise in all the Mexican
stocks in the London market, stimulated
by the declaration during the week OF a
large dividend upon the second preference
stock of the Mexican Railway Company.
which is solely dealt in in London. The
most striking feature of the days market
whs, NJ viewer, a sharp upward movement
In :he last few minutes Of trading in the
United States Steel common shares. The
directors q the United States Steel Cor
'poration meet next Tuesday for the pur-
pose of fixing the quarterly dividend on the
common stock, and the movement in the
Steel shares to-day, therefore, led natur-
ally to umors that an enlarged dividend
distribution was impending. The advance
was otherwise accounted for as due to
knowledge that the statement of the busines
operations OF the corporation for the quarter
ended September 30, which will presumably
also be published on Tuesday, will make an
exceedingly brilliant showing. During the
week there we're few developments OF inan-
cial importance, and such as did occur did
not seem to provoke any great amount OF
either buying or selling OF stocks. The adj
vance in the Norfolk and We stern Railways
dividend rate on its common stock from
to 5 per cent. had been commonly antici-
pated and the tendency Of spectators was
TO regard the steps taken by Secretary Shaw
looking forward to an increase in the coun-
try's bank note circulation as being OF no
great moment. In this view spectators are
clearly mistaken. Up to the close OF bust
ness hours to-day applications had been
made for the taking out OF SIS, 600, 900 OF the
SIS, 600, 900 new circulation authorized by the
Secretary. and it is wholly probable that the
entire sum Of money indicated will be added
to the circulating medium. This means
practically the advent Of just so much new
money into the country. and as the greater
portion of it will be in notes OF small de-
nomination it will serve very much to aid
in the crop moving and to abate the drain Of
currency from the Fast to the West that is
still going N. Election prospects have
occupied attention in Wall Street to greater
or less extent. but it hardly seems as IL they
nave exercised any important influence
upon values. For one thing, there ia no
doubt that there has been during the week
a good deal of liquidation OF stocks by the
plunging room trading speculative element
and that commission houses as a result of
this are in strong shape.