The sun., 1906-02-17
FINANCIAL AND COMMERCIAL.
FRIDAY, Fob. 10.

heavy and in tho concluding portion Of the
day was weak. the net result being further
considerable declines in prices Of the active
stooka. Prices opened about where they
closed Yesterday afternoon and then rallied
on Closing out OF speculative commit
ments for the fall Covering" purchases
Of this kind were for time quite numerous
and were based upon the idea that the
market was still a relatively narrow traders
affair, and that after an average fall of over
a point and half in the last two days prices
Of stocks were entitled at least to a tenn
porary recovery. This rally did not go
very far and was met at the higher levels
by further offerings of stocks for both ac-
counts. The market after this was stag
nant and inclined to sag until the last hour
when it broke sharply under a vigorous
renewal Of selling. The large professional
spectators were for the most part hostile
to tho market. laying more stress than
they had done at any previous time on the
absence from the city of 40 many promi-
nent financiers and active stock market
operators and it must be admitted that tho
roll of individuals of this class who either
are away from the city at the moment or
are to leave in the next few days makes
pretty formidable showing. The matter
that had most to do with the days market,
however. was the dismal expectations con-
oernng Tomorrow = bank statement. Fore
casts of the bank return made out that the
Clearing House institutions had lost in tho
week in the neighborhood of So, 900 Oo0 Il
sum about equivalent to tho surplus bank
reserves as exhibited in the bank statement
Last week. If the event proves that these
t!ata arc indeed accurate in their indica-
tions, moro than small reduction in bank
loans must have been Effected during the
week if the bank surplus is not now en-
tirely or pretty nearly wiped out. 1t was
regarded a probable by those naturally
best nformedon such matters that curtail-
ment Of bank loans would in fact ba shown:
but even so, unless this abridgement has
been very marked, it seems likely that to-
morrows return will be as poor if not poorer
than any ever shown by the local banks at
this time. While trust companies and out
of town institutions have not extended
credit during the week on any unusually
large scale, foreign loans have been nego-
tiated 10 a considerable extent, as is at
tested by the weakness Of foreign exchange.
The decline here has occurred 80 rapidly
as to start discussion to-day as to the proba-
bility of future gold imports. but as e1-
change is only about midway between the
gold export and import points talk of this
sort is obviously premature. On the other
hand there was no letup to-day in the
strength of rates for the use of time money.
Money was lent steadily at 81 per cent.
for all periods and it was said that ~ per
cent. had in some instances been paid for
ninety day loans; ana this was unpeasantly
by SPECTATORS for the advance,
who in addition to the disagrceable effect
Of a declining market we're impressed with
the likelihood that greater charges would
be made for carrying stocks for their
account.
Discouraging. if not exactly pessmistic
reflections caused by the comparatively
poor prices obtained by the city at yester-
days municipal bond sale and indications
a. Afforded by the published summaries
of the report of the Armstrong investigating
committee of drastic acton likely to he
taken by the Legislature toward limiting
the financial activity of insurance COM
panes also played some part to-day in
al t he appointment of a receiver for small
bank in Chicago and the failure Of rather
prominent banking and commission firm
in Wilmington, Del, were properly re-
RarGed as comparatively unimpouant, they
too were not without influence. Moreover,
analyses that were printed Of the earnings
statement recently submitted for the De-
ccmber quarter by the lntcrborough Rapid
Transit Company and the New York City
Railway were Of rather disappointing
Character While passenger traffic on the
New York City Railway for the three months
included in the return heavily enlarged,
t he deficit OF the company was only slightly
smaller than that for the saue Period last
year and the quarters earnings of all the
companies We're not at a rate sufficient
to pay the fall PER cent. dividend on the
$50 100000 of new preferred stock which
is to be i+sued under the Plan recently pro-
posed of consolidating the subway, elevated
and surface railway lines. on the other
hand the annual report of the Maokny
Companies, which appeared to-day, rather
plainly indicated that an increase of divi-
dcnd- upon the common stock Of the cor
porstion is much more than possible.