The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-09
yIMANcrAL AND COMMERCIAL.
SATURDAY, Dec. 9

FINANCIAL AND COMMERCIAL.
SATURDAY. Dec. 8.
The course Of prices in the stock market
during the week made the action OF the
marke. to-day, in view Of developments
regarding the financial situation, not at all
surprising. The publication OF q weekly
bank statement that was the poorest since
the panic times OF 1893, showing that
although bank loans had been reduced
during the week nearly 81 900 600, the banks
had been drained of over si2, 600 900 in cash
Rnd their surplus reserve stood at a deficit
Of S. 100 900, instead 81 producing a break
resulted in a rally in market valuations.
Before the bank statement appeared to-day
the market had been heavy, although dull
ne-s AT her than weakness was its dominant
feature; and the advance in prices that oo-
CURED was still slch AZ to leave quotations
for the principal stocks slightly lower than
they closed on the dsv preceding. The
action OF the market, however, was such as
10 leave its extraordinary strength under
the circumstance the one matter OF note
concerning IL. For this phenomenon a
variety of reasons accrued. The fact that
no liquidation followed the publication Of
the bank statement naturally induced the
retirement of speculative commitments for
the decline. Sterling exchange has fallen
to a lsvei thai points to a renewal OF gold
imports II high financial interests here
think IL is desirable tiat those shall take
place; and beyond all this the impression
was strong in the financial district 10 the
degree OF positive and general belief that
within a very shovt, time the Secretary Of
the Treasury will take action TO relieve the
maaev sitasti.4t ia Az elective way. The
measures ready at the hand Of the Sec
retarv are So vol known "a not to
require description: and there we're to-day
rImors, which were unverifed up TO the
close Of busines and which It must be said
received no confirmation IN circles that
should he informed on such matters, that
meetings of prominent bankers were being
held looking forward to the prospective
handling of a large quantity az additional
deposits of Government money with the
banks. A fun review Of the theories current
IA speculative quarters to-day for the
strength of the stock market under such
y. conditions Us were disclosed must also,
regretably, inclrde this-that il was said
that the condition of the banks was not as
It appeared to-day on its face and that the
low figures Of the bank surplus as quoted
represented manipulation for IN Interior
purpose. Movements of individual stocks
IN the market to-day we're not especially
noteworthy. 4 sharp advance occurred
In the Republic Iron and Steel common
and preferred stocks. based upon rumors
of an impending closer utilization OF the
company with the Tennessee Coal and Iron
Company Union Pacific common stock
was un~favorably affected. although TO a
comparatively small extent, by the indict-
ments found against the company in the
Federal courts in Utah In connection with
the company ownership of coal properties:
hut the stock, nevertheless, displayed as
greet residence as any other when the
market recovered in the latter part OF the
day. On the curb market Nipissing Mines
stock broke to q new low record on its
present declining movement.
The inactivity of the stock market in view
Of many conflicting Influences has been its
rhief feature during the week General
business conditions. Of course. continue
very prosperous. Railway earnings are
perhaps making "A little leas favorable show
ing than recently, partly because they are
comparing will huge earnings last year and
partly because the increased wages OF rail-
way employees. the higher cost Of railway
supplies and 40 forth are making railway
operating expenses larger than they have
ever been before. IL is also true that our
railway companies on account of the stTin-
gency Of the money market are diverting a
large portion OF their earnings outright to
improvements upon their properties and
charging the same to operating expenses
instead of raising money therefor by bond
and stock issues as they ordinarily would
Another matter. too, Of which much has
been heard of late has been the impediment
TO business caused by the shortage Of freight
cars the country over. The railway CON-
panies have been charged with improvidence
in not ordering in dull seasons cars sufficient
for their needs when business once MOI e
lecamc active; but they retort that they did
In fact make this provision and that the real
reason Of the scarcity Of cars Is that con-
signees of goods In all parts Of the land have
not provided themselves with proper facii-
ties for the storage of goods when these are
delivered to them. SO that the railway com-
panies are compelled to practically urn their
terminals and their cars into warehouse
plants. The denmrraPe charge for cars
kept in this manner has long teen only
nominal. and although lately increased
seems very low to ordinary observers con-
sideTing the present exigencies: and just
why the railway managers OF the country
do not roundly increase these demurTage
charges and force the people to whom goods
are sent to take them out OF the cars with
reasonable rapidity does not seem clear.
New York stock Exchange Sales Dee. q.