Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-02
Business the Past Week Was
on a Smaller Scale
THAN THE PRECEDING ONE
But Sufficiently Large to Justify a
Belief
THERE ARE LARGE HOLDINGS
Yet in the Hands of Controlling Pow
ers to Unload--Bank Statement
Proved a Surprise.
THAN THE PRECEDING ONE
THERE ARE LARGE HOLDINGS

session on the stock exchange. The at
tendance of traders was much below the
average, a great many having apparently
awaited themselves of the approaching holi-
day to leave town. Those who remained
hesitated to follow the London market,
which reported slightly higher range for
American securities. The halting tone of
the market was doubtless due largely to
concern regarding the showing of the as
sociated banks in their weekly returns.
The known movement of money for the
week, as shown in yesterdays preliminary
estimates, very strongly suggested a COM
plete wiping out of the legal reserves, but
1t was hoped that the large amount Of for
eign loans placed here at the higher rates
for call and time accommodations would
prove an offset to this drain. Some COM
ment was provoked by the statement con-
tanned in the monthly circular OF a promi-
nent financial institution which offered sug-
gestions for the relief of the money mar
ket, and again urged the government at
Washington to anticipate the retirement of
at least a part of the per cent bonds of
1907
Just as the previous day, Union Pa
cifc was the leader, II so dull market
could be said to have one. The stock. on
buying of the same character as that pre-
vlously noted rose close to its record price,
and before the end of the hour established
higher price than before st. Paul also
exhibited much strength. and again there
was general disposition to couple the
movements of those stocks as a part of
some colossal deal. New York Central also
made a material advance at about this
time.
The bank statement exceeded the most
sanguine expectations. loans decreasing
about 81, 10000 with the cash loss much
below the general estimates. The showing
leaves the excess reserves at 81 S69 900, as
against S55O0O0O in the corresponding week
last year
The list became much more animated, on
the publication of the statement, with
general upward movement. Union Pacific
advancing to 194as, but closing at frac-
tional decline. This represents a net rise
of over thirty points since August II, the
date of the Pacific dividend announcements.
Realizing Profits.
The final trading disclosed some realizing
profits, but the tone was fairly strong. Re
turns of the Louisville and Nashville road
for July showed a gain of over 100000 in
net earnings, while those of the Rock Is
land-Frisco system for the same period in
creased almost $315.0OO. Bank clearings
throughout the country for the week in
creased over % per cent. Sales of stocks on
t}Ie exchange exceeded those of the same
month: last year by over $11, 500, 900 shares,
though bond sales decreased over $33, 900 .0OO
Total sales Of bonds today, par value,
$T2O.OOO.
the preceding week. but still sufficiently
large to justify the belief that the control
ling powers have yet large quantities Of
stocks to unload The Hartman issues
SCARED to higher flights and with them St
Paul. Atchison and some other issues Of
less prominence.
The Hill stocks were also we'll to the
fore, though definite details regarding the
much-discussed ore deal with the United
States Steel Corporation are also lacking.
The money situation was the all-important
factor and evidence a-plenty was at hand
to show that conditions had undergone no
change for the better. In the last half Of
the week call loans advanced to per cent
the highest figure in over two months
and level not before attained in any Au-
gust since 1885, Later 1t advanced to IL
per cent.
Time Money Rates.
Time money in reduced supply was quoted
at virtually per cent for all periods. and
some six-month loans on "all industrials"
were reported at 8 per cent Millions Of
dollars poured into the market at the higher
call and time rates, most Of 1t coming
from international bankers who had sold
heavily of finance bills so as to avail them
selves of the profits thus offered. An inter-
esting point In connection with the sale of
these bills was the remarkable decline in
foreign exchange, which dropped to the
fraction of cent pound sterling of that
touched last April. when the Secretary of
the Treasury deemed 1t advisable to en-
courage gold imports by anticipating inter-
est That only one small European engage
ment followed the decline In exchange was
at hrst matter of some concern.
This feeling soon gave way. however, to
the belief that a tacit agreement exists be-
tween American international bankers and
their correspondents across the water and
that goodly share of gold will come into
the market should the situation become
more acute moderate consignment Of
South African gold Is scheduled to arrive in
London early In the coming week, and II Is
thought that our bid for the gold will
prove successful. in spite of a higher pre-
MUM reported from London for both bar
gold and American eagles.
Australian gold approximating 81 800 900
was engaged. but that will hardly be avail
able until the end OF the month. Figures
dealing with gold imports in September of
previous years are timely.
Gold Shipments Figures.
Last year they were almost 300 900.
more than half coming from Canada. In
1904 they were over 81 500. 900. the lion 8
share again from Canada. Going back to
1896. on the eve of the first Mckinley Bry-
m campaign the inflow. almost all from
Europe. was we'll over $31 100000 In addi-
tion to the natural drain upon weakened
resources this week. there were fairly large
shipments of gold to Canada and currency
to Philadelphia, the latter call being in re-
Spouse TO the failure OF the trust company
there. This last episode. coming soon after
similar occurrences in several other large
cities. offered food for serious reflection,
although Its effect, happily. Is almost al
together local. Another cause for the tight
ness of money toward the end OF the week
lay in the preparations that were making
for big dividend and interest payments by
some three-score railway and industrial
corporations.
These disbursements were estimated at
upward OF So. OOO. 900 and include the Stand
ard OIL, Baltimore and Ohio. Illinois Cen
trail and American Tobacco dividends SEN
tment In Wall street Is variable as the
winds. and the adverse Influences men,
toned. together with the markets late re-
dictionary tendency. doubtless caused q lot
Of people TO ask themselves: Is the pres
ent state of American property and wealth
unprecedented? After all answer to this
Ia that crop conditions continue very favor
able. railroad earnings very large, reports
from various Industrial centers highly en-
couraging, and. what Is probably better
barometer than all else. the commercial
outlook seldom before good. The mar
ket took on a political tinge toward the end,
with the return of Mr.. Bryan. and there
was no little curiosity to know what the
candidate of two presidential Campaigns
might have to say on the issues Of the day.
His first formal utterances were not Of q