Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-11
Market Sagged Badly Toward
the Close of Business.
BANK STATEMENT WEAK
Comparison With Conditions This
Time Last Year.
GENERAL TRADE CONDITIONS
Heavy Additional OUTLAWS of Capital
Are Necessary to Meet Growing
Business Demands.


fifteen minutes of the close of today's ses-
sion the face of the stock market quite
unperturbed by the showing of the bank
statement or by Secretary Shaws an
nouncement that he had no intention, I'M
less conditions materially change, of add
Ing to government deposits with the banks
or of redeeming government bonds to ma
ture next year. Just in the final dealings
there was some selling of stocks which
carried prices downward sharply to weak
closing. The highest prices of the day were
made some time after the bank statement
was published. Its complexion had been
accurately estimated before the publication
and in time to afford opportunity for OPP
erations in the market in anticipation of
the weak showing. The recovery after
ward seemed to be due to rebuyng by pro-
fessonals who had sold stocks before the
statement appeared
No ineligible explanation is to be had
regarding the statement. and 1t is gener-
ally assumed to be due to arbitrary shift
ing of accounts between institutions in and
out of the clearing house association. The
further loan contraction cannot be said to
have surprised Wall street in view of the
similar experience with the two preceding
statements while large transfers of loans
from London to this market were going on.
1t is reported that some loans have been
placed in New York for account of interior
banks during the week, but the borrowing
reported to have taken place by interna-
tional commission houses would far exceed
any possible effect by lending of interior
banks
Last Years Showing.
The decrease in cash of SIS, S31 300 COM
pares with estimates furnished yesterday
by the banks Of about $1,000, 600. The def
lett of s1.514. 125 compares with a deficit on
ha~ laGf Of n,,
the Monday following last year, call money
went to % per cent at the stock exchange
and there was considerable liquidation.
Prompt relief resulted from the liquidation
and from the offerings of foreign and in
terror funds attracted by the high rate.
The movement of currency also turned from
tn interior to New York. with large recu-
peration of cash holdings of the banks
promptly following. The exchanges moved
strongly IN favor OF London today at all
points. including New York. The bond mar
ket was under some pressure and prices
declined quite generally. Total sales. par
value, SI92 200.
There has been dull and dragging stock
market this week, the interruption for the
election day holiday adding to the disincli-
nation to enter on commitments. Specula-
tive disappointment was felt over the fall
ure of the market to revive after the cleo
uon. There had been some buying of
stocks previously, based on the SUPPOSE
ton that buying orders would come into
the market. Such orders failed to appear
to absorb the sales to realize by the pre-
vious buyers, and a sagging market was due
In part to this factor. The Tightening course
oS the money market again was also a re-
straint on speculation and motive for
some reduction of speculative holdings.
Selling. for this reason, was done for Lon
don account. where the money situation is
even more of a factor than here. American
holdings of securities in London have been
especially affected by the contraction of
credits. and this has made necessary con-
tinuatiOn of the transfer of the loans from
London to New York or a liquidation of the
securities thus closed out In the London
market.