The San Francisco call., 1906-08-30
MONEY AND THE BULL MARKET.
Expressions Of Opinion by Two Posted
WaII-Street Operators.

Henry Clews Of New York says of the money
The chief obstscle to the present vigorous
bull market is the monetary situation: Local
bank reserves are very low and II DO snspe ioF
this level OF prices Some relief may be ob-
tained by the release of Government funds, ont
Secretary Shaw is not likely 10 be In any par
ticusr hurry 70 invite public criticism by pro
noting the speculative movement In New YORK.
The only genuine assistance which tne New
York money market can find viii be In gold
imports. CnforrUns tely. however. none Of the
great European financial centers are in a position
cious metal In the middle OF August the Bank
OF England held &s7. 100000 gold. or only $500
held over sIIs 600 900. Of s2.Ooo 600 less than a
year ago: the Bank OF Geruany held. over E54,-
600 600 in the middle Of August, or &S,oO0,OO0
more than last wear Taking the ten principal
European hanks together. the total amount OF
gold held BY them the date in question was
holdings of a year ago. and this IN face OF much
increased demands from various sources. There
has been some talk Of gold imports from London.
Experts calculate that London can spare ABOUT
2I5.O00. 600. but Argentina. Egypt. India and
At London. 50 that al the outside not more than
G3 10000 OF a 600 600 OF this amount is e1-
pected 10 come 10 New York, In case OF ener-
gency this SUN might be Increased somewhat lor
the simple reason that New York Is better able
and more willing 70 pay the higher rate than
sRy other bidder and consequently more likely
"a secure the gold II wanted The best chance
y-osnct5on from Africa australia the Kiopdike
considerably add 10 our stock Of gold In all
proba biliey we shall soon be shipping large
quantities OF cotton and grain. Our manufac-
turing exports are also increasing. promising
favorable balance Of trade. On the other hand,
we are steadily increasing our merchandise I'M
ports and Europe. being less optimistic regard
ing American securities than ourselves. is quite
likely to increase her sales in proportion as our
market advances. Should we be obliged 70 pUr-
chase any considerable amount Of American Sc
curitiex from Europe it would materially lessen
sbility command gold
THE BULL MARKET.
J. S. Bache & Co. say; The immediate move
eliminated last Monday after three days Of the
most pronounced activity Wall street has wit
messed in several years Since then prices have
backed and filed. but the high level has been
more or less maintained
There seems TO be strong bear party at
work against the market and this clique is made
up mostly Of the bears who have been badly
beaten IN the great Hartman coup: This ele
ment is dfSeruntled at their losses and utiltzes
every opportunity TO hammer prices any ap
pezrsnce OF weakness. Their stock argument IS
ton IN its relation to the present wave Of radi-
celisn spreading over the country. Opposed ID
this bear element we think. the leaders IN
finance and railways. including Hartman. Nor
gan and .26 Broadway group. who were re-
Eponsible for the Pacific dividend deals The
bull arguments, we think, are the crops and the
prosperity of the countTS-
Regarding the money situation. Secretary
shaw has placed among country banks this week
three million, and the movement IN foreign ex-'
change tOreshadows gold imports at any moment
II seems TO be the intention Of the Secretary OF
the Treasury not TO permit any great stringency
IN money curing the crop moving period and
should need arise we will. hear from him in no
small way We think the bull movement will
continue"