The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-14
TMaSO1aL- AND COMMERCIAL.
SATURDAY. October IL.

TODAY dyf,s,h OF stocks declined. The fall
ma tendency was In no way specialized.
nearly all the prominent issues declining
menerally In due proportion TO their ordinary
speculative activity, The truth II, so far
az dealings on the Stock Exchange at least
are concerned, that q very large quantity
al these transactions at present perhaps
az much as t~hree.quarters of the total vol
ume) are the work Of habitual professional
apeculators. who are operating for the
time being in the market with the sole idea
a making quick turns and reaping small
profits. Nearly all OF these spectators arc
profoundly optimistic at heart regarding
the future OF values. apd they incline, with
great unanimity to make purchases OF
stocks upon any such recessions In quota
ions as was witnessed, for instance, at the
beginning Of the month. As soon, how,
ever, as the market advances a little they
seem TO Wish 10 convert their paper profits
into cash. although standing ready TO
follow any upward movement that seems
to have the hacking Of the larger financial
interests. All this serves to keep the stock
market land has kept IL for two months now)
IN a narrow range. One pretext for the
weakness or the market to-day wal the
appearance in some OF the morning news
papers Of interviews with various Repub-
lican leaders asserting that whie all the
chanoss favored az strongly as ever the
probatiiity Of the SUCCESS Of their party In
the State election this fall, there was
q danger of overoonfidepce In this re-
spect 8that might lead to such a
lack Of effort on election day az to
place the prospective victory In peril; but
that these ut~t were purely academic
NIL Ca -NkAk n aSAvy ua NJ
tested in the fact that the betting odds
against the Democratic candidate for
Governor in the curb market showed a
tendency, If anything, to enlarge. Prices
of securities have almost uniformly risen
throughout the week. yesterday and to-
day being the only occasions upon which
final duot atious for stocks at the end OF the
day have not shown an advance and to-day's
decline vas nnquestionably due more than
ANYTHING else to realizing sales Of the kind
that have been described. The day during
business hours was almost absolutely
devoid OF financial news Of any importance
whatever, save that afforded In the pubhca-
ton of the weekly bank sta'cment. n
showing made here was in every way favor
able. The cash held by the banks increased
by s., 46O. 900. rejecting the known increase
In the cash holdings Of the Clearing House
institutions since last Saturday and also
repairing to some extent the understate-
ment OF the reserves OF the banks given
IN last weeks return. Bank loans increased
SIS 600 900, "a it was known they would,
by reason Of the large shifting Of loans that
has recently taken place from Europe to
tbs side. The bank surplus now a at
slJ,O24, 400, the largest amount shown at
this date at any time since 1899. q " in the
three years 1904, 1908 and 1901, when COM
paTative inactivity Of business caused
money to accumulate in places Of deposit.
An incident of the day worthy Of note.
but which passed wholly unre garded on
the Stock Exchange, was a further violent
break Of 30 points in sterling exchange,
carrying the price Of sterling down to a
level over th~ree-quarters Of a cent below
thai touched at one time yesterday. This
indicates clearly enough that the pressure
to remit money TO Europe by our bankers
In payment OF maturing obligations Is
s~lackening very decidedly.
y Occurrences Of a financial nature during
the week have been almost uniformly
Of a routine nature, or at least have been
such as not to influence the security market
in any unwonted degree. On Thursday,
q wa universally expected, the Bank of
England "a Used its minimum rate Of dis
count to 5 per cent. This step was neces-
STATED by the cond ton Of the bank, whose
proportion Of reserve to Liabilities stood
onshursday as low as $50 per cent. While
thh 1ra'n Of money to his country from
England had been practically stopped
before the bank ra sed It's rates to borrowers,
gold to the amount Of So, 500, 900 went out
from England to Egypt and other quarters
In the six bus ness days previous to the
time OF compiling the bank return. It
was obviously required both for the con-
servat' on Of its own afa rs and for those
OF the International financial community
that the banks reserves should be re-
plen shed; and tbs process, it is believed,
will speed ly take place. The Imperial
Bank Of Germany also ra'se its discount
rate this week to Q per cent, although the
course OF money rates at the German capital
n now cons dered as OF far less Importance
than those at any one OF the worlds great
tinanc al centres. The substantial fact
about our own financ al stuat on, speak
ing generally, is that every ind.cat on
promises that after the first OF the year
money VIII flow to New York in great
abundance and that the period when par
tioIISs stress was likely 10 Be shown; Il The
local money market has already passed.
Time money is thus freely obtainable now
at varying quotations below the legal
rate, and the rate for call money Is such
as can only be called nominal in view Of
the vast volume of the country's general
business. In the early part OF the week
the Governments report OF crop conditions
on October / appeared. making a ex-
hibit nc less sat sfactory and in some re-
spects even more 30 than that Of the month
~preceding. A wheat crop never exceeded
but once before, and then only slightly In
tbs country's history, the largest corn
crop on record and even an oats crop
much better than was thought probable
in August. are now absolutely assured.
Whereas at one time predictions were com
mon for only half an average crop Of oats,
IL IL man fest that the decrease from oven
Last years. bumper harvest OF this grain
will be comparatively small.
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