The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1906-11-18
STOCKS WILL BOOM
IN WALL STREET
Saturdays Trading Shows
Continuation of Activity
Caused by Money Market
UNION PACIFIC GAINS


NEW YORK. Nov. 1.-THE re-
newed stock speculation in Wall
street was actively continued to-
day under the influence of the
Frightening prospects in the money
market The principal dealings spread
to new quarters and 1t was obvious
that some distribution was being eff
fected of the stocks which figured most
prominently IN the previous sharp ad-
vances.
Union Pacific was the conspicuous
new favorite and the demand was
stimulated by glowing rumors of the
forthcoming annual report Mean
while St Paul, the Hill stocks, Read
ing, Amalgamated Copper and South
ern Pacific were sent back by selling
to realize. limitations were In circu-
lation before the appearance OF the
bank statement that restoration OF
the surplus would be disclosed and
buying was actively pursued on the
assumption thus founded.
Such intimations before the appear
ance of the official compilation OF the
condition Of the banks by the clear
ing house have become a regular rou-
tine in Wall street. They are profess
eddy based on estimates by experts, but
they are found generally to correct
errors in the expert estimates made
ION Friday afternoon and prepare
speculative sentiment for the dis
erepancies from the Friday estimates
which are shown by the bank state
ment.
Today's principal discrepancy in that
respect was the $2,S17,300 cash in
crease compared with the estimate OF
not over one million. Last weeks un-
expectedly heavy loss was attributed
to Withdrawals by the trust companies,
and the report Of conditions having
been made to the State superintendent
of Banking. ii is supposed that they
have now made redeposits with the
banks. A large movement of gold into
the Bank of England, some or 1t
American eagles, received from the
Bank of France, was feature OF the
days news regarded with satisfaction
here Sterling exchange in this mar
ket however, continued to rise with
the easing of the money market
Light was thrown on the strength of
New York's position in the commercial
exchanges to meet the large volume OF
loans which New York owes abroad by
the October foreign trade statement
The increase in agricultural exports
over last year is expanded by the
growth in manufactured exports to
nearly s3s, 200, 900. The value OF i'm
ports also has declined for the first
Increase in the excess value of exports
for the month Of s4z,34S,498 to a total
of sSs.271,56S, while the net gold in
ports for the month was only slightly
over see, 600, 00o
The mixed character of the trading
continued up to the closing and made
1t irregular.
Total sales of bonds, par value,
s91S.000.
The Financier says: The restoration
in the surplus reserve of the New York
associated banks was confidently eX-
pected TO be shown in last weeks Of
fetal statement for several reasons
Almost always when deficiencies are
recorded they are followed by sur
plus in the succeeding week, partly as
the result of the contraction in loans
and consequently in deposits and in re-
serve requirements, with which con-
traction is effected by individual banks
with the object of rectifying their re-
serve position Inasmuch as such con-
traction was SO actively in progress
last week as TO be observable through
daily calling of loans, it was conf
IDENTIFY expected that restoration of
the surplus would be indicated by the
weeks statement. Moreover there was
evidence during the week that the
high rates for call money, resulting
from depleted local bank reserves and
Calling u lOduSs WAC dtti dCNlA46 AOiA0o
from the interior institutions; there
fore, a gain in cash seemed to be dis
tinctly foreshadowed.
Today's bank statement showed an
increase of s2,S17,300 in cash, which
was little more than the sum that
was estimated upon the basis of the
traceable movements of money; and
this gain largely reflected receipts of
cash from nearby interior banks for
temporary loaning and also a return
flow of money from the West, indicat-
ing the beginning of the usual changes
in this direction of the seasons none
tary tide.
Deposits decreased $4,274.000, which
amount is 1891. 800 more than the sum
of contraction in loans less the gain
in cash: hence the statement made a
fairly good proof. The required re-
serve against general deposits was re-
duced by $1,O6s, 500, adding which to
the gain in cash made $3,SS5,S00 as the
increase in reserve, to $2,371, SIS sur
plus, against $1,514,125 deficiency in
the previous week; last year at the
the surplus was restored to S2,915,150
from a deficiency of $2,42S, 500 in the
week of November II.
Computed upon the basis OF deposits,
less $14.32O.s00 public funds, the sur
plus last week was $5,951, S75. Loans
were contracted $1,000. 400, thus con-
tributing TO the favorable statement. |
The excess of loans over deposits is
s44,917. 800, against S46.763,700 in the
previous week.