Los Angeles herald., 1906-09-29
Rv Associated Prees.


NEW YORK, Sept 2S-Stocks were
under pressure again today which be-
came acute at times but were inter-
rupted by occasional rallies when the
bear traders detected a slackening in
the selling and bought to cover shorts.
A savage onslaught on the over
extended short interest caused the vio-
lent recovery at last.
The high opening was direct result
of the order of the treasury department
placing S26,000,000. of government de-
positS in national banks at different
points throughout the country. The
high prices were Immediately taken
advantage of to sell stocks in realtZa- :
tion of profits and this movement con-
tinued at intervals for the rest of the
day.
The early rise in the call money rate
aroused apprehension that there would
be furry later in the day in spite of
the government deposits with the
banks Preparations were evidently
going on for the heavy demands to be
met on Monday for payment of divi-
dends and interest and for increase of
the cash revenues of the trust company.
Loans were called quite large scale
and bidding became rather urgent for
renewals. Several million dollars were
placed in the loan market, however, by
the national banks and these offerings
kept the rate down.
The effect of this action on specula-
tive sentiment was impaired to de-
Paul Union Pacific and Amalgamated
Copper in the stock market. concen-
trated selling of these stocks giving an
impression of the liquidation of the i'm
portant speculative sentiment which is
quick to be influenced by movements
in any stocks reputed to be a medium
for market operations by the recognized
groups of great capitalists.
The method of relief for the money
market chosen by the treasury authori-
ties did not give entire assurance of its
effectiveness for meeting the needs
of the stock market The wide dis
tribution of deposits is likely. 1t was
assumed, to initiate against an easy
flow into the New York money market
1t was not forgotten also that the
depository banks are under admonition
from the secretary of the treasury to
see that govern ment deposits do not
find their way in to the New York call
market, where 1T was assumed they
would be employed in stock market
speculation
The effect Of the treasury order was
pronounced, however, in the time
money market and opinions were ex-
pressed by brokers' in that market that
return to per cent level for time
loans was an early probability.
Foreign markets. were also favorabl v
affected by the Washington action and
discounts receded in the London mar
ket. although advancing in Paris and
Berlin The effect was to lift foreign
excna n Re rates early IN the daY Dnt
they yielded again later Estimates of
the currency movement indicated that
h1oSS m routine subtrea sury opera =
tions had been s1innlemented tn the ex-
tent of over s3. OoO. 000 by the movemen t
IN the interior on balance on tho ev-
nress movement. The condition of the
banks is less con sdered than the cur
renrv movement Of next week.
The Oregon stocks rallied verv hnov-
antly hut in the general list the recov-
ery did not ext end generally beyond
las+ NIGHTS level Of nrires
The closing was feversh and irregu- =
lar
Bonds wore irre~ular. Total sales.
par value 1852 600
United States 2s declined q per cen
on call