The San Francisco call., 1906-05-06
STOCK MARKET
YET UNSETTLED
Prices FluCtuatG
FeVeriShly on
Exchange.
Plenty Of Gold and
Currency for San
Francisco.

NEW YORK, May 5.-Prices fluctu-
ated feverishly in the active trading
of the short session of the stock mar
ket today. Final prices, however,
showed insignificant net changes, as a
rule, except in the group of coalers and
some Of the minor specialties. The an
thracite coal carriers had the natural
advantage of the news that a settle
ment OF the labor dispute with the
miners was in sight and that strike
ing were on an enormous scale and
with considerable sympathetic effect
on the general market. This influence
was not sufficient, however, to hold the
general list in face of some Of the other
factors which came into play.
The early weakness in ST. Paul and
New York Central was traceable to the
developments in the struggle for rail-
road rate regulation. The movement
thetic Of the state of mind Of the
financial groups most directly con-
cerned in the Presidents arraignment
of the Standard Oil Company. The
selling Of New York Central was con-
nected with the finding of an indict-
ment for rebating. The unsettling ef-
feet Of these declines was generally
overcome when Reading began to shoot
upward.
An irregular tone started after the
appearance Of the bank statement. OPP
orators in stocks have keen apprecia-
ton of the enormous extent to which
credits IN the stock market have been
scaled down during the week. That
the average Of the loans of the banks
should have been increased for the
week $1,000. 400 made striking exhibit
of the heavy requirements which make
the withdrawal of credits from the
stock market necessary to afford means
for meeting them A decline in the
cash holdings Of s4.S2O2O0 was in con-
trast with preliminary estimates of
gain Of from 5000, 900 to over SIC, Co.,
600.
Withdrawals OF cash by the trust
companies to build up their reserves in
compliance with the new State law
were given the responsibility for part
of the discrepancy. There was a SINH
lar discrepancy In last weeks bank
statement, which would bring the aver
ages over into this week. the loss in
the cash last week being less than a
million dollars. when the known move
ments OF money had indicated loss
of nearly $1,000, 000 Furthermore, some
% tho ioroa cold an0o Uaroarts of fba
latter part Of the week, owing to de-
layed accounting IN the Sub-Treasury
operations, have not figured In this
weeks bank statement. The effect of
the statement on the market neverthe-
less was unfavorable and the closing
was irregular, in spite OF the renewed
advance at the last In the coalers.
There has been a drastic liquidation
Of stocks during the week and great
damage resulted to quoted values and
an enormous shrinkage Of the basis Of
credits. The movement was accom-
panied at times by disorder and con-
fusion owing TO the urgency Of the
operators to sell and the huge volume
Of some Of the Individual holdings
thrown upon the market. There were
evidences Of the relief afforded by the
process before the week was over, but
the tone of the speculation was nervous
liquidation had not been
complsted. The larger part Of the
liquidation was attributed to overex-
tended individual Speculation and to
market pools and organizations which
had undertaken to hold the market for
special stocks and groups thus becom-
ing overloaded beyond their capacity 10
carry. It is supposed that many Of the
time loans secured during the money
have been maturing recently and the
borrowers were left In a vulnerable po-
sition by the unwfllingness of operators
to renew. The requirements Of tho
May / settlements complicated the sit
uation and the speculative pools had
no other resource but to liquidats their
stock holdings.
On Wednesday the sales of stocks
rose to nearly 100000 shares and the
crash Of prices was 80 violent as to
create alarm. AS is not unusual, how
ever, In a speculative crisis, the pa
roxysnl proved the cuimination for the
time being and the subsequent trading
showed the relief afforded by the oper-
alton.
The strong inflow of gold and the
freedom from obstacles to the move
nieflt in foreign money markets are
welcomed for the resources supplied for
San B'rancisco's immediate pressing
needs. Remittances by foreign insur-
ancs companies against fire losses are
believed to play soIns part in the gold
movement Reports point also to some
important absorption of American Sc
curitfes for foreign account But very
large borrowings OF foreign funds also
have been made, which viii figure in
the account for futura settlement, The
huge accumulation Of. cash which has
been made at San Franeisci is accepted
as a necessary preparation for the re-
sumption of banking thsre, return