New-York tribune., 1906-09-10
TIE WEEK IN WALL STREET.

impatient or any control may DO INC P0'N
interests enlisted in a campaign for putting UP
the prices Of stocks. was demonstrated anew IN
Wall Street in the week just ended. The whirl-
ing speculation which began in full strength
with the announcement that Union Pacific COM
mon stock had been placed upon 10 per cent
annual dividend basis had its first check week
ago, when IL was found that. at the very begin
ming OF the demands from the interior'fo cash
with which 10 finance the moving Of virtually
record crops. the surplus reserve OF the Asso-
ciated Banks Of the country's financial centre
stood at only 81 S69. .sOe even that amount being
a pleasant surprise. for the known movements
Of money during that week had indicated the
total disappearance Of the surplus. Early IN
the last week the stock market moved IN an
irregular way. Efforts were made on Tuesday
morning 20 advance prices under the stimulus
Of a sharp advance engineered in certain Ameri-
can stocks in the London market by American
operators on Monday. when the New York Stock
Excbansa was closed. these efforts being
abandoned with the rise Of call money. which
reached 80 per cent before the day was over
many loans being called by banks anxious
10 increase their reserve TO at least the required
minimum of 25 per cent of deposits. and rates
on standing call loans being marked up.
The experience of Tuesday was that OF
Wednesday the stock market alternating De
tween strength and weakness and the can
money rate soaring 10 30 per cent higher
flight than previously since January. Finance
bills we're multiplied and foreign capital IN I'D
eraI volume was mads available for employment
in loans at the high rates ruling here while
money from interior points was also Loaned IN
This market. Foreign exchange declined still
further and one or two engagements or mooer-
ate amounts Of gold were announced, but. al
.L,a fa vas below
cold irport point the movement OF gold in
large amounts from Europe TO the United States
seemed as far from beginning as ever. Hopes
OF Intervention by the Secretary of the Treasury
10 relieve the strain the money market had
been buoying up the courage Of the operators
foremost in working for advance in stock
prices but the Secretary had taken the heart
less view that the money stTingency was pinch
ing Wall Street and was not causing embarrass-
ment 10 general business throughout the land
That attitude he abandoned on Wednesday af-
ternoon. announcing after the stock markets
close that his gold import facilitation" order,
originally issued in April and rescinded several
weeks later. would. beginning to-day become
again operative. That a shrewd guess had been
made of his decision TO take this step appeared
probable from the fact that in the last hour Of
the Stock Exchange session that day stocks
were actively bid up and the foreign exchange
market was temporarily swept bare of bills.
How much gold will come in the present
movement nobody can AT this time say. but the
best authorities place the amount at S25.0oo.Ooo
20 s3oOoO.0OO When this morning the importing
banks present their bonds at the Sub Treasury
for deposit as collateral against government
moneys 20 be turned over TO them TO be en-
pIoyed without interest until corresponding con-
| signnlents Of gold actually engaged prior TO to-
/
destination here. II will probably be found that
arrangements have already been made for
bringing in from $4,000. 600 TO s150OOOOo There
| have been Of late several minor engagements Of
| gold in Australia, which in transit 10
the Pacific Coast. and II is possible that the Sec
retary's offer may be used the basis for secur-
ing a relatively large amount Of Australian gold.
/ At the end Of the week indeed. demand sterling
| had advanced by about the number Of points
| commonly representing the item Of interest in
transit" in the computation Of the cost of bring
/ ing In gold. charge Of which the importing in
sttutions are relieved through the import faciii-
| tation order; and were IL not that even this
higher rate is still we'll below the import point.
and that the Bank Of England has shown little
disposition in the last week TO obstruct the out
| going of the metal, the total 10 be obtained for
| the United States within the near future would
| doubtless be very much less than the expected
| s2500O.000 S3O.OO0.OOO. AssuredIy as much is
| needed can be secured with the condition of
the associated banks OF this city as set forth I'm
| last Saturdays Clearing House statement
| weaker than ever before at this date and with
| their aggregate reserve Ss,577,925 below the %
per cent minimum required TO be maintained.
and lower than in any preceding week since the
| panic year OF 1893.
The formal announcement that Secretary shaw
! had revived his April order had not the measure
OF influence I'm kindling bullish enthusiasm in
the stock market that had been looked for by
many OF those who read the overnight news Of
that action. A rally there was but it was
/ speedily succeeded by recession and the irregu-
| larity Of the earlier davs of the week The CsI1
| hovered around disconcertingly high levels; the
! rates for time loans and for mercantile paper
| unusually nigh for this time OF the year. showed
| no sign of relaxation: and the movement OF
| money 20 the interior continued large foreshad-
| owing a loss by the banks for the week Of many
| millions OF cash Large though the additions tC
| the cash resources OF the banks might be upon
the putting into operation OF the Secretary's de-
| vice, the immediate situation was recognized as
one full OF menace. and in the face OF Il the
| putting up OF the stock market was deferred
| That determined and probably successful efforts
| will soon be made. however. TO advance stock
| prices, on the strength Of the supplies OF
cash soon TO be available as a basis for further
loan expansion. there is excellent ground for be-
lieving. Justification for such policy Is sought
in the fact Of national prosperity and OF cor
porate prosperity as reflected In dividend IN
creases already made or about TO be registered
But against these considerations, legitimate un
der money market conditions different from those
now existing. must be set the fact that bank
reserves are dangerously low: that day by day
for many weeks 10 come a heavy drain upon
those reserves will be in progress for Offsettina
which a goodly share OF the gold 90 bt
brought 10 these shores will be needed. and tha
stock quotations. a rule. already measure pret-
| ~ literally the progress made by railways anC
Industrial corporations during this era OF wide
spread prosperity. The sanguine believe that tn,
Secretary will soon again relieve the strain by
A An fort