The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-07
FINANCIAL AND COMMERCIAL.
FRIDAY, April o.

u blCab IL biOhbeaS VI
market was exhibited to-day In rising
prices for securities, despite a continuance
Of the money stringency. The course of
the money market was nominally the re-
verse Of that followed by 1t yesterday and
yet much higher rates were in fact paid for
the Use of funds on call than at any other
time during the week. The first call loans
on he floor Of the Stock Exchange were
made almost simultaneously at 20 and 20
per cont and these rates were advanced
to 30 per cent. In the second hour OF busi-
ness. From then on during the remainder
Of the session the price for money declined
slowly to a 6 Ter cent. basis, but the bulk
Of the loans were made early In the day
and the banks almost invariably charged
20 or % per cent. for rene walls. Probably
three quarters of the call money lent during
the dav was borrowed at rs per cent, or IL
per cent higher than yesterdays average
rate. All this resulted in the fore part OF
the day in a pretty irregular stock market
Prices were strong at first and then weak,
declines of a point or more occurring in the
prominent shares. Afterward the market
was plainly inclined to rally. General con-
fdence was expressed that although call
money rates might hold at a @ per cent.
hvel or even at q point somewhat above
this for a considerable time to come, the
critical period of the "spasm" In rates mad
passed and that the situation would grad
ually become easier from now on, cultnlnat-
ing in due course in such rates Tor money
az spectators of every grade aVing proper
collateral to offer could afford to pay.
Time money to-day, as should he noted,
WAS much harder, quoted rates being ga
to 50 per cent. for all periods; while those
desiring to borrow on time on lndustrlai
collateral alone could secure little money at
less tina 9 per cent. To the strength OF time
money was undoubtedly due a further fairly
sensational break in sterling exchange
which would manifestly seem to presaSe
gold imports at an early date. Announce
ment was made, indeed, just before the END
of business that a gold import engagement
of somewhat less than 81 ,OOO, 600 had taken
place in London for our account; and 1t was
TO the belief that our bids for money in the
Foreien ma rkets would result in the ship
ment from Europe to this side of a con-
siderable quantity of gold in the imme-
date future that apparently had most to
do with the strength and residence of the
stock market throughout the day. 1t is
true that these bids for money on our part,
accompanied with the Offering of the new
German loan, caused the foreign markets
to-day to assume an attitude OF indecision
II not of weakness. Discounts abroad
were generally firmer than they were
Yesterday and the price OF American eagles
and of bar gold was advanced In London
1t was still thought, however, that the
current weakness in sterling here was such
as to counteract the influence OF all OBJ
sta cles that might be interposcd abroad TO
the EXPORT Of gold in reasonable amount
10 this side.
!As might havc been expected from the
status of money rates, indications were
for an unfavorGhle return of the clearing
House institutions tomorrow, at least
in the item Of cash holdings. The esti-
mates were that the local banks had lost
to the Srb-Treasury and by shipment to
interior points between s 800 900 and slO,-
SOC. 900. 1t was known that the bank state
ment last week did not show all the loss
In cash which the banks had then sustained.
This deficiency should normally be made
I'M in to-morrow's statement, and II tine
loss reported by the banks is even no greater
than to-day's lowest estimate thereof
a heavy decrease in loans would nave to
be shown to ohviate a serious impairment
of the banks surplus reserve. The re-
covery in the stock market to-day dated
from the ca rly afternoon and was led by
n pronounced upward movement in Penn
sylvania stock. No particular reason APP
reared to be advanced for the buying
in this quarter other than the fact that
the usual 3 | per cent. semi-annual dividend
will be deducted from the price of the Penn
sylvania shares in about three weeks,
and that the net earnings of the company
are now beginning to reflect in notable
degree the increased earning power OF
tho company arising from the vast ex-
De- ditures made in recent years in improve
ment work. In the later trading the stock
market, though dull, suffered no abate-
ment of firmness, closing prices being
as a rule but slightly if at all under the
DAVIS best The anthracite labor oues-
ton did not seem to figure at all as a market
factor. and the especial strength Of Penn
sylyapia stock was taken as an indication
that whatever the upshot Of the anthracite
trouble was it would not adversely affect
prices of securities.