Los Angeles herald., 1906-12-06
Rv Assnciated Press.

NEW YORK. Dec. 5.-The stock mar
ket struggled with the money string
ency today but reflected clearly the diff
ficulties of the situation for spectators
who are carrying stocks with borrowed
money Loans were called from time
to time on large scale by the banks
to reduct their deposit liabilities in the
measure of heavy drains that were max
ing on their cash reserves. Occasional
liquidation was forced by this process.
The appearance of the annual report
of the secretary of the treasury was the
signal for comprehensive recovery of
declines leading to halt in the market
at about last nights level. The recov-
cry was based on the assumption that
the secretary stood ready to take steps
to relieve money StringenCy in accord
ance with the strongly expressed views
in the annual report of the duty in
cumbent upon him to deposit in the
banks as much as can possibly be
spared of surplus funds in the treasury
though it becomes necessary to pay the
current expenses of the government
with checks on depository banks
But while this language was accepted
as an earnest of early action for the
relief of the money market, the relief
was not announced and the calling in of
loans was an actual situation The fact
that money conditions abroad also began
to Tighten again was regarded as an
additional factor in favor of probable
action by the treasury department as
the secretary was almost as emphatic
on the necessity of aiding to prevent
hurtful stringency abroad and at home.
Much interest attached to the passage
in the report which said THE United
States can i'll afford to disturb financial
conditions in Europe and if necessary
to prevent it the present head of the
treasury would not hesitate to make
deposits in national banks on condition
that the banks in turn deposit an equal
amount abroad"
This was interpreted as an announce
ment that the benevolent attitude of the
treasury department towards the import
of gold might be conversely exercised
on occasion towards the export of gold.
That the course of money in New
York and the resultant effect on the
exchanges has been tending toward:
the further withdrawal of gold from
London is the fear of the London mar
ket, and this is regarded as precludins
any relaxation in the money situation
in London before the end of the year
Not only is currency going from New
York to San Francisco to move the
fruit crop and to New Orleans to move
the cotton crop but the drop in New
York exchange at Chicago to a discount
again marks a recurrence of demand
from the west in spite of the high rul-
ing rates for money in this market.
Customs collections are running very
large, the government receipts in New
amounting to $1,2S9, 656
The loss of banks on subtreasury
operations since the last bank statement
now amounts to S5.631, 900. The action
of the banks in calling loans needs no
further elucidation.
New York Central was temporarily
strong on the increase in the dividend
rate which conformed to expectations
Intimations of additional capital issues
by Atchison and Norfolk e. Western
foreshadowed the future requirements
from this cause on the money market
which are expected to grow. The
urgency with which new capital con-
tinues to be sought in spite of the diff
ticulties of the money market gives an
impression of undiminishing confidence
in the permanecy of the needs which
are sought to be supplied by this outlay
The effect is to confirm hopeful senti-
ment over the outlook for values. This
sentiment was apparent, in fact, in the
stubborn manner in which stocks
yielded to the money market inconven-
fences. The dull and obstinate resist
ance was shown up to the closing
The 80 per cent call loan rate is the
highest since the first week in Septem-
Der when money went to 4C per cent
and the banks repored a deficit at the
end of the week.
Bonds were irregular. Total sales,
par value, $205O0O0
United States As registered advanced
a per cent on call.