The Montgomery advertiser., 1906-07-22
THE STOCK MARKET.
HANK STATEMENT A SURPRISE TO
 THE OPERATORS.
unable t0 Account for the Unlocked For CnaM n--auofatTsns on
 snort Time Loans Are Great- $ Iy RedueNd

s-~--4------ N
 New York. July 21.--The bank state,
 ment today showed that there had
 been substantial ground for the hopes
 ot strong bank return which lay at of stocks and the improved feeling over the money outlook. But the sources of the added strength of the
 panking position were obscure An
 on the known movements of money,
 was realized by almost double that amount Commentators were perplex- driyen c back a upon saplhe'i the old assumption or operations with trust companies al- lied with the banks, to account for this great increase in cash. The $s435. goo oian Increase was taken as an intima-
 ton of stock market needs and gave
 point to some of the weeks rumors oI large borrowing for account of m
 terests closely related te some of the
 great railroads whose stocks have figured in the weeks revived strength.
 Quotations of short time loans, al. nGa raass on tosaY the ea per cent win offerings at four per cent. A good effect is looked for on Panama canal bond subscriptions, which are offered by the Secretary of the Treasury. Hopes. are entertained ss sso or oo securing psrs or London. Money lenders are inclined to look for easier money rates in conse- quence. Foreign exchange rates, how sible effect upon New York's command of the London gold supply It ap- peared that most of the speculative Staten Statement aSha had of been ns anticipated and prices advanced for only half an. hour. After that time 1t lost ground ana tne demand was insufficient after the bank statement to absorb the traders prom taking The closing was irregular with
 only part of the early gains retafned
 Total sales of bonds, par value.
 The pressure of liquidation was lift
 ed from the market again this week and the movement of prices left to the
 devices of th professional traders al
 most altogether. This movement re- flected an extremely uncertain frame
 of mind on thir part, prices backing and filling continually. but with an av- commonly accepted opinion that the buying came to a large extent from the uncovered short interest and any material rise in n the ievs lot pfhaeeSs he suS aSa crease of the selling pressure.
 The feeling over the money situation substantial factor fb the better tone of the stock market and also operated to give play to some of the inhuenceg fro mthe highly prosperons MnnsS eoaa,lonI on caIi ruled decidedly easy and there was some ultimate effect also on the rates for time loans for the shorter periods. This was the normal effect of thdpass, ing of the July settlement period and between seasons period in the active demand for money in circulation. But n,r time loans for six months, carry. ing over the end of the yeer, was measure of the solicitude over the Ia. cilfties ct the command for gettlng upon the demand for stocks even with tho depressinE influence removed or immediate money necessities was thus played an important part In the weeks money market and the firm course gave rise to confidence that helped rather than proved a detrlment 10 the
 Large disbursements were made by the treasury department on account or mall transportation and other con helped 10 offset the preparations for the return of 1000 900 of government deposits called for the goth instant. offers wers mads gs or Its reaeposKl5 bsnKa or suh scribing to the aPnama canal bonds t othe extent of sne-third of the sub gcriptions and this also helped to ease posits secured by State and municipal bonds. It is assumed also that there will be important increase of bank note tSSQCA tHtOu6A @AC " tArA S~Fts.Ag of government bonds available for the purpose. Gold was secured for New York in London early in the week and engagements were also made in Aus traila for shipment to San Francisco without carving the foreign exchange rate avp'y from the level ,p ao profit on gold ir,5arts. This kept alive q De- lief that next weeks large arrivals of gold in London, estimated at $5,- Ooo.6OO, would yield further supplies for New York. The withdrawal of gold from Lon don was not achieved without eVl- dence of opposition in that market to inc movement. Foreign markets nave their own requirements and their own troubles to consider. The krowing and Berlin markets and has forced sterling exchange In Paris down to level that makes that center 2, com petitor with New York for gold .hn in London. Anxiety is manifest over the Speculative position in London ana there has been liquidation of , accounts zee 1nss stock exchange settlement there tne trouble being aggravated by the deatn nf d capitalist largely concerned in South African properties