Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-30
OVER P.

NEW YORK, September 29.-The short
session of the stock market today was in
clined to be feverish, and prices fuctuated
constantly and rather uncertainty. The
weakness Of the evening dealings was not
| forcibly renewed. but the later strength
was not sustained and the market closed
easy at a general reaction from the best.
The opening declines were due to heavy
sales to realize on the late bulge yesterday
and also to some doubts aroused by the
lack of official confirmation of the conclu-
sion of the ore lands deal between the Great
Northern and the United States Steel Cor
poration. The stocks concerned in that mat
ter rallied strongly, owing to the authorita-
tive character of the unofficial Information
on the matter.
They ran off again in the late dealings,
however, and contributed much to the irreg-
ular closing. Preliminary estimates Of the
bank statement again proved wide OF the
facts, owing principally to the confusion in
| the accounting of gold import movement.
The gain of nearly 81, 600, 900 in cash reserves
disclosed by the statement where loss had
been estimated, running in some cases to
double that amount, caused vigorous
| movement upward. led by Reading and
some of the btumnous coal carriers and
SOuthWeSterners.
The effect upon the money market of next
Mondays heavy settlements, however,
leaves some cause for anxiety. The Bank
of England surrendered $4,25O,O0O of its
supply of gold today. of which 900
| was for New York. This heavy drain adds
| to the probability of more effective meas
ures of protection being adopted next week.
The storm damage in the south and the
conditions in Cuba and the possibility Of an
extra session Of Congress in consequence
were discussed with some unfavorable eff
feet on sentiment. Total sales of bonds,
| par value $854.0OO.
Downward Tendency for Prices.
| Stocks have moved irregularly this week
and have tended lower. with evidence Of
| some liquidation of speculative accounts
| and under the influence of a number Of dis
| turbing factors. Pressure has not been Sc
we're and resistance was shown from time
| to time, and support forthcoming at
any considerable declines The evidence
| from all quarters of the Astounding pros
| perity of the country afforded underlying
| strength to the market, and the unsettling
| factors were the exigencies Of the money
| market. especially in prospect. and the
activity Of political discussion and the ses-
sions Of the New York party conventions
| The crisis In Cuban affairs has con-
| tributed it's share in the restraining influ-
| ence on the market. The approach of the
October LIST settlement period has been
viewed with some anxiety. owing to the
| very large requirements which converge
| upon that date Interest and dividend pay
ments to be made on Monday are estimated
| at some SS5, 0O0.0eO. The trust companies
are called upon to increase their cash re-
| serves on that date to the extent Of per
| cent of their deposits, which will involve
| an accumulation of some $40. 1880 900 of cash.
| Many millions OF taxes are payable In New
York during the first week Of October. and
| the effect Is usually perceptible on the
| banking reserves. With a tight money
market in all departments. this would cause
| a pinch in the call loan market
This prospect has induced conservatism
in stock market operations The caution
| thus observed has had a part in keeping
| the call loan market free from disturbance
during the week. Confidence has been 80
| very strong throughout that the United
| States treasury authorities stood prepared
| to offer protection against harmful strn-
gency by. the use Of the funds lying idle in
the government vaults, but it was not until
| Thursday evening. after the stock market
| had closed. that the order was issued at
| Washington for the deposit or $40. 900. 900
! OF government funds in the national banks
| Of various cities In different parts of the
| country.
The Money Situation.
The money situation and the condition Of
the banks is the subject of constant discus
sion and keen attention in the financial dis
! trct, and all possible measures of relief
for the admittedly extended credit situa-
ton are eagerly canvassed. The engage
ments of gold abroad for import under the
| trea surys plan of assistance have been
on a dwindling scale during the week. anil
| In face of active opposition by interposl-
| ton of all possible obstacles to the move
| ment In foreign money markets. Open mar
| ket discount rates have been pushed up In
| London, Paris and Berlin by the pressure
| from New York. and the Bank of England
| has exercised severe discrimination against
| American credits and American cola EZRA,
| in loans by charging discount rates above
its official rate.
Tha ,tn, VII
| London made carrying charges on Ameii-
| can securities as high as per cent. This
| course by foreign money markets added to
! the Importance attached to the United
| States treasury's attitude toward the
money market Great interest was aroused
| by the compilation of the reports of con-
dition of the national banks throughout
| the country made to the cOHttDiiar Of TIE
| currency, which was made up ct .Vasrinc.
| ION this week The exhib. was considered
| as impressive evidence of the widespread
requirement upon the money market, ard
| as fully bearing out the universal tesi-
! mony to the high rate of activity IN Ill de-
| partments of business and industry On
September 4, compared with August % OF
| last year., deposits had gown s3IH2lj 900
| and loans had expanded $500, sIt.Gu0, while
the reserves held had c:,i,cn ST. 40, 600,
| leaving the proportion Of reserves TO d.pos-
| its 2OD per cent, compared with u GY Fer
| cent last year.
New York Bank Clearings.
| A comparison OF the condition Of the New
York clearing house banks for the same
| period shows contraction of loans of up
| ward Of $50, 100000, and a decrease in cash
| of over 40.O00.O0O. 1t will be seen there
fore. that the decline in cash reserves for
the whole country has fallen, in effect upon
the New York banks. while the loan con-
| traction in New York for the year fndf-
Gates that the credit expansion has gone to
| the country at large. presumably in extern
sion of enterprise and active employment
| of trade other than stock market securities.
The high ruling rates for the best grades
| of commercial paper and for time loans
bear out this showing of the general dis
| seminatfon of the demand for money Yet
it is well recognized that very large credits
| are committed to the holding of securities
| in the New York stock market and of
! American securities in London. The as
| sumption that these credits have been OBJ
/ tanned to a iarge extent from foreign lend
ers accords with the known facts Of enor-