Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-04
Market Closed Firm at the Re-
covery After Early Drop.
READING QUITE VIGOROUS
Bank Statement Showed Large Loss
of Cash.
LOANS DISPLAY A DECREASE
The Increase in the Pennsylvania
Dividend Was of Great and Far
Reaching Effect.
LOANS DISPLAY A DECREASE

Reaching Effect.
NEW YORK. November 3.-The stock
market was weak for an hour and then
strong for an hour today and closed firm at
the recovery. Reading absorbed large
share OF the market and was the only
stock to move either way with any vigor.
The early selling of this stock was plainly
due to large extent to the taking or
profits on yesterdays rise. The Whole mar
ket was affected In sympathy There was
some professional selling also caused by
fears of q weak bank statement owing TO
the weeks large indicated outSo or cash
and the probability that credit accounts
had also been extended during the week.
The bank statement verified the most hpE
erai estimates OF the loss of cash during
the week. the decrease In that item rising
to S7342 400. But whatever Increase OF
credits NAV have been made in New YORK
during the week 1t was again kept out of
the bank statement. which showed loan
decrease of 50. a., 300 The assumption that
credits were expanded was based upon the
known needs of November money settle
ment and the process of transferring loans
from the London market to the New YORK
market, which has been general during
the week There IS nothing to show what
was the source of relief for the banks from
the increased loan requirements. 1t is as
sumcd that the trust companies and prl-
yate banking houses took their share of the
burden In addition to this 1t is known
that franc loan bills have been negotiated
in this market during the week.
Gables from Paris report good deal of
xx,ith devplOnmpnt
and discrimination by the Bank of France
against American finance bills in an EFFORT
10 check it, But with the money rate in
Paris but slightly above per cent the at
traction of the profitable rate Tor time
loans here apparently proves stronger thail
the obstacles offered by the central bank
ing institution have been able 10 oppose
II Is this condition which has given rise
to rumors of an intended advance in the
Bank of France discount rate. Total sales
of bonds, par value, 81 l6l,ooo.
Review of the Week.
The stock market of the early part OF the
week struggled with some elements OF de
preston, but more than recovered the
losses In the later rally. The upward move
ment was initiated in Pennsylvania on ac-
COMMIT of the increase in the dividend rate
to per cent and was supplemented by the
buoyant advance in the Hill railroad stocks.
While the market was dull and the specu-
laton under restraint during the greater
mart of the week there were number of
important developments going on.
The increase in the Pennsylvania dividend
was of greatest influence and was OF far
reaching effect, not only with stock itself,
but on speculative sentiment in general
The incident was taken as renewed demon
stration of the high degree Of prosperity
of the transportation industry ana or the
inferential prosperity of other business,
which is to be deduced from profitable &C
tivity by the railroads. The decision to in
crease the disbursement to stockholders
was of special force owing TO the large
capital requirements of the company for its
extensive betterments and improvements
which are being met at this time
The possibility of decision to conserve
earnings for these needs as against con-
tinued expansion of mortgage liabilities
had kept opinion in doubt over the dividend
action up to the time OF Its actual an
neuncement. There was some dlsappoint-
ment over the retention of the Il of i per
cent quarterly dividend on United States
Steel as there had been some speculative
buying on an assumption that the rate
would be increased.
Some of the forecasts for net earnings for
the quarter of corporations proved to have
been extravagant, some estimates having
pointed 10 an amount in excess of S40COo,-
COZ. With untitled orders on hand larger
than any quarterly period in its history,
however and with reports from day to day
OF unchecked growth in demand for all
lines of product the effect was to confirm
confidence in the high degree OF prosperity
Of this great basic industry.
Early Iron Deliveries.
Some OF the embarrassments which come
with high pressure of Industrial and bust
ness activity remained in evidence and were
given their share of attention In the mar
ket outlook In the iron and steel industry
itself there were reports of difficulty in Sc
curing early deliveries of iron and Of pre-
miums paid to secure material for carrying
on production. Imports of foreign iron
were a feature of this situation Railroad
equipment companies are overwhelmel
with orders to relieve the railroads from
blockades OF freight which they have not
facilities to move, while the car construc-
ton companies complain in turn that the
railroads cannot deliver material with
. which to carry out these orders. Another
situation which has come into pcominece
this week is the concerted demands made
upon railroad companies by organized bod
les of employees for higher wages and
shorter hours. These were the subject OF
some misgivings on the part of security
holders at one time during the week, but
. with the progress of negotiations there is
a feeling of confidence In a satisfactory ad-
justment. which would avoid an arrest of
profitable activities. Last Saturdays bank
statement was regarded with general skep-
ticism as a true reflection of the course of
banking conditions, especially in the re-
ported loan contracted in the clearing house
Institutions. as all indications had pointed
TO "a transfer of loans on large scale from
London 10 this market. The conclusion was
quite general that trust companies and
private bankers in New York had taken
over loans from the clearing house banks,
d. which would not make any actual change
in the local credit situation. 1t was feared
that The effect of the loans transferred
from London to this market was only post
poned in this way and not prevented. In
addition the November settlements have
made large requirements on the banks The
suhtrtasury and the interior have continued
20 draw. on New York bank reserves.
English Reserve Declines.
Some anxiety over the money situation
has been the consequence. This was partly
nlIayed by the restriction of the call money
rate 20 a per cent maximum. On the side
OF the foreign money markets the outlook
Is by no means clear. The substantial re-
covcry in Russian securities abroad has re-
moved one cause of uneasness. but this has
no, reuulted in any relaxation OF the jeal-
GUS conservation of it's resources by the
hank of France. The Bank of England not
only has not effected any recuperation in
its condition. but showed a further decline
IN proportion Of reserve to the liability In