The San Francisco call., 1906-10-28
MONEY MARKET IS
Still STRONG.

NEW YORK, Oct. 27.-Transactions
were not large in the two hours ses-
sion of the stock market today. The
market was under pressure for time
during the first part of the session,
apparently of speculative liquidation,
hut this was completed before the ap-
pearance of the bank statement. AFTER
its publication buying orders appeared,
especially in United States Steel, and
prices were bid UP sharply. The clos
ing was in consequences strong, but
only moderately active. The bank re-
turns show a reduction Of $27,634, 900
in the deposit item, and with this up
ward of s2o,OO0,ooo was in the credit
account.
The time money market was report
ed strong today, but money brokers
reported that funds were Offering
again against sterling loans. The for
eign exchange market was weak and
discounts eased in London. The Bank
of England shipped s1,275,000 to Egypt,
but consignment of over s6.ooo'ooo
of South American gold arrived in
England
! S462,000.
At the opening this week there was
| spasmodic recovery from the demor-
allied break in prices at the close OF
last weeks market.
Ih6 course OIL 1OI0lSn L1Oncy 111d1
kets has sent stocks into this market
for sale, and there has been some spec
ulative liquidation also for domestic
account. Large operators have been
out of the market, and banking inter-
ests were credited with a sentiment ad-
verse to the present. speculative &C
tivity. When prices advanced they
met free offerings. The desire to await
the passing of elections was in part
the supposed motive for this attitude,
as it was supposed to be the cause Of
laying aside of some important projects
which were the subject of rumors In
! the past and were relied upon to stimu-
late speculative activity There were
some other developments of the week
calculated to repress speculative ac-
| tiyity, although most of them were
the result of the high pressure of
prosperous activity in all departments
| of business Such were the formu-
lated demands upon the railroads by
organized bodies of their employees for
higher wages and shorter hours. An
other result of the country's enormous
traffic was felt in the growing shortage
of freight cars, which has become SO
marked as to threaten serious block
ades and shortage of material for
carrying on production in some i'm
portant lines. Grain men complain
that some of the railroad companies
refuse to receive grain for transporta-
ton, putting them in an embarrassing
position to meet contracts for deliv-
cry The iron trade reports scarcity
of iron for delivery, and the pressure
for early delivery of copper also con-
tinues.
Most important of the facilities for
1 commerce of which the available sup
ply shows indications of strain is
money. The main pressure has shift
ed to foreign money markets, but the
effect is transmitted through all mar
kets by the medium of the exchanges.
Notwithstanding the drastic measure
of a per cent official discount rate
which was adopted last week. this
weeks return of the banks shows a de-
cline again in the proportion of reserve
to liability, both by decrease in bullion
holdings and by increase in loans It's
reserve continues near the $4,000, 600
level, which is regarded in itself as a
danger line for this season of the year.