Los Angeles herald., 1906-11-13
Bv Associated Press.

NEW YORK Nov. 12.-The money sit
ration had some effect on prices of stocks
today The determined abstinence from
operations ON the market, which was u
feature of last week, gave place to some
liquidation. AS the demand continued as
torpid as last week, the selling was al
fected only at concessions which were
substantial in stocks where previous
speculation had been active.
The compelling influence on the selling
was the calling of loans necessitated py
the deficit in the legal reserves of the
banks shown by the Saturday bank
statement. No source of replenishment
of cash is available yet and reduct1on
of deposits by scaling down of outstand-
ing credits is the alternative. Holders
of securities thus called upon for repay
ment seemed reluctant to part with their
holdings and their efforts to secure fresh
accommodations ran the money rate up
to 20 per cent early in the day.
The local banks were said to be out of
the money market entirely and funds
panies and out of town lenders. The
large excess over the estimates of the
loss of cash by the banks disclosed by the
bank statement may be due to the with
drawal of cash by the trust companies
These institutions are under legal REQUIRE
ment to maintain four per cent of their
deposits in actual cash in their vaults,
as they have not been in previous years.
1t is believed that the bank loan con-
traction of over $35, 100000 of the last
three weeks has been taken over largely
by the trust companies. This would ne
cesSitate an increase or reserves IN tnelr
cash in the proportion of four per cent
instead of in the proportion OF 20 per
cent as in the case of the clearing house
institutions. The stringency in the money
situation was aggravated by the maturity
of an installment of about half the sub
scriptons at par to $2oOOO,00O of st. PAU
stock which therefore called for provision
of about ST., ,000, 900.
Operators in stocks were somewhat dis
turbed by the explicit assertion OF the
secretary of the treasury that he would
take no measure of relief for the money
market in present conditions. The repe-
tition of the announcement today was
that, after confident assertions were in
circulation in Wall street, that early
steps would be taken to replenish the
money market in spite of the disclaimers
of the treasury authorities.
Opinion is not united in financial cir
cles as to the feasibility of treasury
measures to give effective relief at the
present time. 1t is recognized as out of
The question to bring about easy condl-
tons in Wall street except by carrying
foreign markets with this to a low inter
est basis. And marked relaxation in rates
here will lead certainly to an out go OF
gold to assist the struggle of the London
money market to adjust itself to the
heavy coming requirement of the year.
end settlements.
The stock market settlement began in
London today and carry-oVer rates were
again stiff a rate of 8 per cent being
reported at one time. The rates for ster-
ling exchange had declined nevertheless
under the Influence of the stringent
money market and free offering of cotton
bills.
Discounts hardened in London and
Berlin, but the Bank of England secured
a large consignment of South African
gold newly arrived in London.
The decline in prices of stocks gave
some additional point to discussion of the
adjustment of the labor question which
is going on either by voluntary advances
by many corporations or by demands
from labor organizations. Not much APP
prehension was expressed of stocks in
spite of the progress of a ballot reported
among the Erie firemen on the question
of going oIrt.
The reports of the prosecution in pre-
paration against the Standard Oil COM
pany of an intended investigation of the
Hartman railroad combinations by the
interstate commerce commission and OF
iumored recommendations in the forth
coming message of the president We're
items In the days discussion and had
some influence in the depression
The considerable part played by short
selling buyers was indicated by the re-
covery in the latter part of the day due
TO covering of short contracts.
The closing was firm at the recovery.
Bonds were easy.
Total sales, par value, 81, 1SS, 900
United States bonds were unchanged on
call