Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-18
Frightening Money Market
Helps Trade Conditions.
DISTRIBUTION EFFECTED
Union Pacific Was the Conspicuous
New Favorite.
COURSE OF WEEKS TRADING
Upward Movement Has Gained Force
as Week Progressed Owing
to Easier Money.
COURSE OF WEEKS TRADING


NEW YORK, November 1.-THE revived
speculation was actively continued today
under the influence of the Frightening pros
poets In the money market. The principal
dealings spread to some new quarters, and
II was obvious that some distribution was
being effected of the stocks which have fig
ured most prominently in the previous
sharp advances Union Pacific was the con-
spicuous new favorite and the demand was
stimulated by glowing rumors of the tenor
of the Forthcoming annual report. Mean
time, ST. Paul, the Hill stocks, Reading,
Amalgamated Copper and Southern Pacific
were held back by selling to realize.
limitations were in circulation before
the appearance of the bank statement that
a restoration of the surplus would be dis
closed, and buying was actively pursued on
the assumption thus founded. Such init
nations before the appearance of the
official compilation of the condition OF
the banks by the clearing house have
become a regular routine In wan
street They are professedly based on
estimates by experts, but they are found
generally to correct errors In the export
estimates made on Friday afternoon, ana
prepare speculative sentiment for the dis
are shown by the bank statement. Today
principal discrepancy in that respect was
the 81 S17 300 cash increase compared with
the estimate of not over one million.
English Bank Reserve.
Last weeks Unexpectedly heavy loss was
attributed to Withdrawals by the trust
companies. and the report of condition hav-
ing now been made to the state superin-
tendenr Of banking, 1t is supposed that
those bodies have now made re-deposits
with the banks. A large movement of gold
into the Bank of England, some of 1t
American eagles received from the Bank of
France, was feature of the days news re-
garded with satisfaction here. Sterling ex-
change in this market, however, continued
to rise with the easing of the money mar
ket. Light was thrown on the strength of
New York's position in the CT numerical ex-
changes to meet the large volume of loans
which New York owes abroad by the Octo-
Der foreign trade statement. The increase
in agricultural exports over last year is
expanded by the growth in manufactured
exports to nearly $50, 100000. The value of
imports also has declined, for the first time
in many months. The effect is an increase
In the excess value of exports for the month
of S42 343, 49S to total of $50, 271 sos, while
the net gold import for the month was only
slightly over So. 100000. The mixed charac-
ter of the trading continued up to the clos
ing and made 1t irregular. Total sales of
DOHdS par Value SSlS,UuO.
Stringency Of Money.
The deficit In the legal reserves of the
banks disclosed by last weeks bank state
ment led to calling of loans by the banks
on Monday. which ran the call money rate
up to 20 per cent on that day and led to
some throwing over of speculative holdings
of stocks. The break in prices was sharp
for time. but recovery set in before the
day was over, and the upward movement
gained force as the week progressed. The
stringency on Monday was aggravated by
the maturity OF an installment Of subscrip-
tons to new St. Paul stock, which called
for 81 100000. The quick relaxation in the
money market afterward was attributed in
some part to the replacement of these SUBJ
scription funds in the loan market.
St Paul also took the leading place in
the revival of speculation which followed
the relaxation in money. The speculation
was accompanied by much animated sur
mise and little authentic information and
dealt for the most part with old rumors
which have played a part more than once
before in stimulating speculation. The
superstition was the important plans were
In contemplation for readjustment of re-
lations between important railroad sys-
TENS. st. Paul itself was assigned by
these rumors to be Joined to the Hartman
group OF Pacihcs, and important subscrip-
ton rights to the new issue of $75,OO0.O0O
each of common and preferred stock were
also assumed.
Rumors as to Hill.
In the case of the Hill group conjecture
busted itself with the manner in which
the benefits of the ore lands contract would
be distributed to stockholders in some ne
gotiative form, and there was added an
assertion that the Burlington was to be
taken over to entire control by the Great
Northern, with important benefit to the
Northern Pacific for REIMBURSEMENT. Rock
Island also became the subject of rumors
or extended relations. The factors in the
Reading movement were less clearly de-
fined, but were vaguely assigned as related
TO the working out of Hartman plans
growing out OF the Union Pacific's acquisi-
ton OF Baltimore and Ohio stock with
the additional control of Reading thus car
ried. 1t requires only a superficial survey
or the weeks movement in the market to
show that the stocks within the sphere OF
the influences thus outlined make up the
bulk of the weeks operations The gen
eral market has moved narrowly. Commits
sion houses continue to complain that gen.
eral interest in the market is lacking o,
continues to be diverted almost entirely t.
fields, especially real estate speculation ant
the craze for mining stocks of all grades
While the ammunition for the revival in
stocks consists of these ma terials with
the convenient element of indetiniteness
and mystery In large proportion the real
cause Is clearly the easier tone which has
developed In the money market The re-
Taxation has affected all the great money
centers and thus kept New York free from
outside pressure, which would have been in.
evitable with lower interest rates here
while the tension abroad continued. The
completion Of a stock market settlement IL
London was effected with less pressure fol
the retirement of American holdings anC
American borrowings than was feared. The
weekly statement of the Bank of England
also showed the reserve restored to tn,
traditional limit of safety, and prospect.
of additional replenishment were considered
good enough to cause a subsistence of fear:
that the official rate would have to bt
advanced before the end of the year The
relief in London was partly caused by tn,
remittance of capital from Paris, which
was reported to be on account of an in
stallment OF subscription to the Penn
sylvania loan which was issued in Paris
This triangular operation reduced Londor
claims on New York for maturing indebt
edness and helped to relieve the tension
here.
Decline in Money Rates.
The high money rate of Monday here at
tracted offerings for funds for interior
banks The rise in New York exchange a
interior points was partly due to thi.
movement to. the higher interest market
But there was a perceptible decline a!
we'll in the demand for currency from tn,
interior for moving the harvests.