Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-04-22
Close of the Week Was Irregu-
lar and FeaturelesS.
&c ERAL LIQUIDATION
San Francisco's Losses 0vershadowed
Everything.
SPECULATION OVER INSURANCE
Meeting of Obligations Expected to
Send Gold Here-Stringency in
Money Market Relieved.
SPECULATION OVER INSURANCE

today. There was some evidence of strength
during the early dealings, but the natural
forces of reactions after the first recovery
asserted themselves. Stocks which were
purchased yesterday entirely for the pur-
pose OF supporting the market came back
for sale today. and the trading element,
which had followed the rebound. also resold
stocks. The tendency was emphasized after
the appearance of the bank statement, the
strong showing being taken advantage of
to realize profits. The market was not very
active at any time and fell into extreme
dullness at intervals. Some OF the stocks
which have suffered from direct property
losses In California made wide recoveries
today. The S1S.OU1OG0 gain in cash shown
by the bank statement is practically all
accounted for by the deposits of govern
ment funds with the banks against gold i'm
ports.
Yesterdays deposits on that account do
not figure in the statement. Yesterdays
deposits at the subtreasury for transfer to
California, of course, figure in the bank
averages for only one day. There was a
further movement of funds for that desti-
nation today to an amount which practical
ly exhausted the S10O00,009 limit authorized
by the Secretary of the Treasury for trans
fer to San Francisco. That limit was re-
moved during the day.
Transfers also We're made from Chicago
and Other western banking centers for
made by express to points in the neighbof
hood of San Francisco. owing to the present
confused state OF affairs in that city. The
sterling exchange market today was nom
inal, but quoted ranges were lower and ad
ditionai imports of gold are looked for next
week. There is a disposition to await the
effect of these heavy Withdrawals upon the
foreign markets, in which the situation Is
complicated by the pending payment of
subscriptions to the Russian loan. There
was some recovery In stocks from the de-
cline after the bank statement, but the
closing tone was irregular.
Total sales of bonds, par value, 81 2iO, 900.
The San Francisco Disaster.
The San Francisco calamity has over
Swallowed all other considerations In the
stock market in common with mankind
In general. The enormous property losses
involved indefinite as are the calculations
of their extent, make this inevitable with
out considering the purely sentimental eff
feet on the mind of so terrible a catastro-
phe In the unsettling of fixed standards of
estimating the existence and durability of
values and the sympathetic influence of
widespread suffering and misfortune.
Abundant experience proves that these
mental and temperamental influences on
securities markets are not TO be ignored
when great disasters occur.
Except in the case Of properties confined
to the doomed city itself, notably the street
railway systems. the effect on stock quota
lions has been distributed. Railroads with
terminals In San Francisco and sufferers
by actual property losses have not declined
IN the stock market in much greater pro-
portion than the general list. There can be
no doubt that a part of the general liqulda-
tion has been designed to safeguard the
holdings of properties Immediately con-
cerned by securing liquid resources by the
sale OF other securities.
Foreign Companies Recourse.
It is believed, for instance that the
heavy liabilities thrown upon foreign fire
insurance corporations have prompted sell
Ing Of American securities to provide re-
sources for the remIttances to this coun-
try which must follow in payment Of
losses. Estimates of liabilities Of British
companies for insurance run from S2J, 000,-
coo to S30CQO,OOO.
The meeting Of these obligations IS ex-
pected TO cause a free movement Of gold
TO this country, and to offer an important
factor IN meeting the strain on money re-
BourceS resulting from the money losses
by the disaster But the tendency TO dis
tribute heavy strain throughout the world
Of capital IS eXempllfed in the immediate
strain thrown upon the securities markets
by the creation Of this liability Of insurance
companies.
Precautionary liquidation OF a similar
kind has poured into the stock market
from many sources, including. of course,
speculative holders of stocks of all degrees
of strength, who saw the threat OF losses
on their holdings and inability to protect
them through decline whose limits could
not be fOreseen. This class of holders OF
stocks had manifested a tendency to re-
treat from their position already before the
earthquake shock in California completed
the disturbance of their position.
Speculative Commitments.
Large speculative commitments have
been entered upon in the latter part OF
March. In the expectation that an active
speculation In stocks would develop in
April with the passing Of the quarterly re-
quirements upon the money markets. The
successive dsappontments which had been
met in this had not reduced materially the
long account, which held tenaciousiy.
The week opened with conclusive evil
dence that the stringeucy In the money
market had been decsivoly broken by the
large engagements of gold for import
which followed the action of the United
States Treasury Department IN advancing
government funds to gold importers pend
ing the arrival of tine shipments. thus saw
ing them the cost OF interest on the con-
signments during the period OF transit ana
giving New York control of the London
gold supply. Ihe call money rate In New
York receded to below 4 per cent under the
offerings OF this fresh supply OF funds.
Currency also moved toward New York
from the interior and caused belief that
the delayed turn in the tide of the currency
movement had set in. But the relaxation
I'm the money market failed to attract a
general interest In the stock market, ana
the character OF the selling on Monday and
Tuesday led 10 the inference that important
long accounts were being retired from The
market. This disposition was increased by
the prospect OF an anthracite coal strike
which seemed to be threatened as natural
consequence of the rejection of the miners
proposition by the operators.
An Unfavorable Eject.
An unfavorable effect was produced upon
the market also. by the retention on behalf
OF the government OF distinguished counsel
10 prosecute an inquiry against railroads
engaged IN the coal-cayrying trade The
special message OF the President, request
ing supplemental measures 10 cure defects
developed in the antitrust legislation re-
vived consideration on the whole subject of
governmental control OF corporation al
fairs President RCoscveit's public ut
terance in favor OF limitation upon be-
queathed wealth was discussed in the same
connection.
The conviction was already gaining force
that the repleuishment of money resources
and the building up OF banking reserves
was needed to sustain the great expans on
credits in the country for the CARRYING out
OF plans for extension and new enterprises
Including great real estate development
The stringency in the money market had
resulted evidently in ciogging somewhat the
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