The San Francisco call., 1906-09-23
CON |NUED CALL
FOR BIG CREDITS.
Many Lenders Tighten
Purse Strings Because
of Expected Difficulty
HEAVY OPERATIONS

expectations and belied some lforecasts
from the usually accepted experts that
had threatened a poor showing. But
In spite of the Improvement indicated
in the banking position the stock mar
ket showed little inclination to throw
off it's lethargy. The course of the
time money and mercantile paper mar
ket toward the end of the week was
regarded as better index of the
sitaution and of the disinclination of
money lenders to entrust further re-
sources to the uses of stock market
operations. The amount of resources
at the command of the banks must
supply the extraordinary requirements
about the first of october and 1T is
realized that growing difficulty will
be encountered In securing additional
gold abroad for the benefit of New
York.
The $7,422,200 loan expansion of the
week shows the continued demand for
large credits.
Estimates made yesterday by the ac-
cepted authorities showed astonishing
discrepancies in the item of the weeks
cash movement.
OPERATORS HOPEFUL.
There was a confident hope among
street speculative operators yesterday
that further measures of Treasury re-
lief would be announced before the day
hope prompted some of the selling. The
market closed weak, with considerable
losses Total sales Of bonds, par value.
was $4,000.
Bonds have been dull and sluggish.
United States rs declined "a per cent
on call during the week.
Operations in stocks continued large
during the week, but were congested in
few of the prime speculative favor
ties and prices f1uctuated unevenly and
irregularly. First Importance. by COM
mon consent Is given to the authori-
tative admission that Union Pacific is
negotiating for the purchase OF the
holdings of Baltimore and Ohio recently
sold by the Pennsylvania to Kuhn.
Loeb & Co. The situation suggests 81
comparison with the period OF the for
nation of the Northern Securities
Company, which stimulated a furor OF
speculation.
Further gold has been secured for
New York abroad under the operation
of the aid of treasury deposits with
national banks aGainst gold engage
iuents. l.jsing non rates in all for
c:gn moEey markets and the depletion
of available gold supplies have psen
the growing obstan.ts TO the movs.nent.
Interest rates on the best grades OF
mercantile paper meanwhile have adj
have widened, indicating that relief
thus far secured is not sufficient to
Prevent further stringency.
Business and industry are so un-
precedentedly active In all lines that
full demand for money in commercial
channels is definitely assured. Opinion
in Wall street turns more and more to
expected measures of treasury relief
for the money market as essential to
f@,-
SHOWS LARGE INCREASE.
Contrary to general expectations the
official statement of the New York
Associated Banks last week showed a
closer correspondence than has re-
Gently been the case between the esti-
mated changes in cash which were
based upon the traceable movements of
money during the week and the off,
cially reported figures The latter last
week indicated a gain of $12.220,500
cash while the majority of the esti-
mates showed an expected increase of
IL 2-3 millions. 1t seems like the un-
recorded averages of the cash move
ment in the week of September is
were brought over into last week, thus
accounting for the large increase
shown The general deposits increased
SIT, 900, which amount is l AS mill
lions less than the sum of the increase
In loans ana the gain IN cash, tHcIS-
fore the statement failed to prove.
The required reserve against deposits
was augmented s4,440,s75, deducting
which from the gain in cash left $7,77s.-
525 as the increase in surplus reserve
to s11.315,925. Computed upon the
basis of deposits, less those of $25,547,-
400 public funds, the surplus is $17,-
fo2,775.
1t may be noted that the public de-
posits showed an increase last week of
s7,863 900, making a gain of $15,207,10
for the fortnight, rejecting the ad-
vances to banks of money for the pur-
pose of facilitating gold imports. Loans
were expanded $7.422,2o0, which Is
very moderate sum considering the
large loaning operations during the
week possibly, however. the bulk of
the Stock Exchange loans was effected
with trust compenies and private bank
ers; loans were $20,631,0 900 in excess of
deposits. against $So,s72,So0 in the pre-
vious week.