The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-29
FINANCIAL AND COMMERCIAL.
SATURDAY, April 2

To-day's stock market was admittedly
disappointing from the point Of view OF
those who had hoped hat yesterdays vio-
lent fall OF nearly 8 points in the prices Of
the leading stocks, coming on top OF a
rapidly. declining market for a week and
q half previously, indicated that the hlui-
dalton overhanging the market consequent
upon the San Francisco disaster had been
completed. In the first half hour Of the
day there was a somewhat stronger UNDER
tone In the trading; but 1t soon became clear
that the chief support extended to the
market came from the purchasing of stocks
made to retire commitments for the decline
n that selling pressure was still being
NYpfed. The market, therefore, expert
en6ed a further decline, not so sharp us
that Of yesterday, but still such as to in
duoe the cancellation OF many buying orders
for stocks that had been placed lightly
below yesterdays closing figures on the
idea that a rally. at least, in prices was due.
There was no decentralization and no such
remarkable drops as those seen yesterday
In the Great Northern and Northern Pacific
stocks; but there was unceasing liquidation
which left final prices of stocks at net de-
clines Of more than a point in most in
stances. There was a fall larger than this
in many of the inactive and high priced
shares. The market was absolutely with
out featurs or notable incident and entirely
subject to the general, tendency toward
lower prices evident ever since the San Fran
cisco disaster. Before the publication Of
the bank statement some special influence,
perhaps, was exerted by the particular
weakness in the Reading stocks, owing,
presumably, to the refusal Of the anthra-
-.N -. -. A. x---z
ing newspapers, to consider favorably the
last proposition made to them by the miners
union. The bank statement was a ~puzzling
exhibit, although more logical in some
ways than it appeared to be specifically.
1t had been realized yesterday that the
estimates of a cash loss by the banks dur
ing .thei week of between IS, 900 900 and
$1,000 900 were quite in the dark, mas
much as the complications caused by the
constant withdrawal and deposit Of money
by the banks at the Sub-Treasury on
account Of the various transactions rela-
tive 10 geld imports and the shipment of
money to the West well nigh totally OBJ
scured the true condition of the Clearing
House institutions. 1t was clear, however,
that the release by the Treasury in the last
day or so of nearly s $1,000, 900 as advances
dbuhNb1 bolN bNfohD "oupN oplVoi ~ Il
very, small extent, If at all, in tina bank
return, and it was generally thought that
a large loss in cash, which would probably
he shown by the banks in to-day's state
ment would represent the banks as weaker
IN money than they really were. But
to-day's statement indicated a decrease
In bank cash Of less than 500 600: SO that
opinions differed widely as to whether this
. revealed the present condition of the banks
with any accuracy whatever. 1t would
nave seemed on the face Of things as if the |
lnquestionably heavy reduction of loans
on stock market collateral in the week had
greatly cut Town the bank loan account
in the period; and yet these loans were
to-day reported as expanding nearly S22,-
900, 900. Reason for this was, no doubt,
that three-fourths Of the money sent by
the banks since the compilation of the last
bank return to San Francisco and other
, Western cities was money borrowed by the
people to. whom it was sent, so that despite
the large cutting down of loans to the stock
market lending by the banks elsewhere
increased. 1t is also probable that some
money though not as much as is commonly
talked of, was borrowed during the week
by the fire insurance companies. The
bank surplus, it is to be observed, still
stands at $40, 348, 400, which is by no means
an uncomfortable sum for this time OF the
s.years.
As is almost needless to state, the catas-
tFpPhe on the Pacific Coast has been practi-
caliy the only matter bearing directly or
indirectly upon the stock market in the last
week. Spectators for the rise in the mar
ket found generally that they had made
a miscalculation Of the effects Of the dis
aster in that they had underestimated the
necessity resting upon ~inancia institu-
tions in the East of sending at once large
sums of money to the West; and this led
to a hasty termination OF plans that had
been undoubtedly made for an upward
movement in stocks. And yet despite the
temporary loss of funds which the Eastern
banks have Unexpectedly sustained, it GER
tainly seems as if all reasonable indications
still favor the probability of comparatively
easy money in Wall Street for at least many
months to come. A great deal Of the money |
thai has been sent to California will return
here, as is believed by those having the best
opportunities for judging, sooner than is
commonly anticipated. This money has
been hastily borrowed by the California
hanks for the purpose of making them
selves strong, and a fuller judgment of the
AtuauOn makes III pToDaDle tnaU tney VIII
nave actual need for only a portion Of the
money that they have borrowed. Most
of the money that will be paid out by these
institutions when they open for business
will be in the form of gold, and gold coin
Ii something that is not easily carried
around in the pockets of individuals. Much
Of the money that will be withdrawn by
depositors from the San Francisco banks
will, therefore, almost certainly be speedily
returned there and will find its way back to
the East. Again the stock market finds itself
in a stronger position than it has been for
a year, back by reason Of a reduction of
liabilities, and also open to the natural
forces Of recovery after a drop Of II points
in the average price Of stocks in ten days.
Banking and business conditions over the
copptrY, ere not only as brilliant, but as
,e0fAs possibly can be, and it will
experience if prices Of Sc
Il, aast eespd9fl to them
New York stock ExpAanEs sales April ~.
CLOSING PRIcEs OF UNITED STATES BONDS.
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