The San Francisco call., 1906-12-23
RAILROAD STOCKS
. SHOW Weakness
Heavy Unloading of Read
ing Followed by Falling
Off In the Hill Securities
CONDITION OF BANKS

NEW YORK, Dec. 22.-Reading was
acutely depressed in today's stock mar
ket and the heavy unloading of the
stock was unexplained by any speclai
news until the announcement or the
failure of a house with Stock Exchange
connections and a branch ONCE In
Philadelphia. 1t is supposed that some
large accounts in Reading were car
ried by the house. The whole list was
affected in sympathy, but to a moderate
extent IN comparison until the nnal
break in the market after the failure
was announced Traders joined in the
selling Of Reading under the supposi-
tion that the heavy speculative liquida-
ton was based on disappointment over
the failure TO raise the dividend rate on
the stocks.
The Hill stocks, Union Pacific, st.
Paul and Northwestern showed re-
newal of the weakness which has al
fected them ever since the new stock
issues of Northwestern railroads were
announced The weakness of the mar
ket was aggravated after the appear
ance of the bank statement. All OF the
expected gain in cash was reported, but
the meager loan contraction was dis
appointment. A reduction of the loan
account of less than half a million dol
lars was regarded as an inadequate re-
liquidation which has been going on
in the stock market during the week.
The withdrawal of gold from the Bank
of England for Egyptian account was
renewed.
The approach OF the critical stage in
the dispute over the wages of yard
men In New York was a contributory
cause of weakness. The selling move
ment effectually broke up the dullness
of the early trading, which is usual on
the eve of a holiday.
The total sales OF bonds, par value,
amounted to s96S,000.
The Financier says: The official state
ment of the New York Associated Banks
last week fully realized early expecta-
tions and indicated an entire restora-
ton of the surplus reserve. This i'm
provement in bank conditions was due
almost wholly to important gains in
cash The loan account contributed only
moderately TO such Improvement. show
ing but very sma< contraction. The
gain in cash was $f,126,S00, and this
amount almost exafly corresponded
with that which wc.s estimated, upon
the basis of the traceable movements
of money during the week. 1t may be
observed that this remarkable ac-
curacy in the estimates was obtained
because of the fact that the data for
the calculation was supplied by the rec
ords Of cash movements at the sub
treasury. General deposits increased
81, 5S7. coo. which is nearly one mil
lion below the total of the gain in cash,
less the decrease in loans, and there
fore the statement made only fairly
good proof The required reserve
against general deposits was aug
mented s1,146.s5O. deducting which
from the increase in cash left s4,979,-
$50 as the increase in reserve to s3,2S0.-
600 surplus, gainst s1,699,050 deficiency
in the previous week Computed upon
the basis of deposits, less those of S16,-
59S,20O public funds-which, it may be
noted, increased s1,36o,200 during the
week-the- surplus is s7,430.450. Loans
contracted were only s4S3.000; II is sur
prising that, with the enormous
liquidation in the stock market and the
heavy calling of loans by the banks
last week, this item showed so small
q decrease. The excess of loans over
deposits was s55.534, 500. against s6,6o4,-
900 in the previous week.