Evening star., 1906-09-07
Loss in Cash by Banks Exceeds
s1o,ooo,ooo.
MONEY MARKET is ACTIVE
Gold Coming Here Influences London
London Exchange.
SHAW CALLS BANKS TO ACCOUNT
Administers Admonition to Depository
institutions Against Lending Their
Surplus Funds at High Rates.

Special Dispatch to The Star.
NEW YORK, September THE irregular
and generally reactionary tendencies VIII, &.
were exhibited in today's stock market
during the greater part Of the business ses-
sion might have been accounted for through
Several causes. In the first place. the puo-
lication Of the preliminary estimates or the
movements in currency during the week In
dicated loss In cash by the banks in ex-
cess Of $1O.OOO,OO0 or nearly four times the
whole amount of the surplus reserves re-
ported In last weeks bank statement.
As might be expected. the money market
continued active. although rates averaged
well below the figures quoted earlier In the
week. Sterling exchange advanced further,
but cable dispatches from London set forth
that f604 900 had been engaged for export
TO New York.
The London stock market was unfavof-
ably influenced to some extent by the out
How of gold to America but on account OF
the disparity between the London and the
New York quotations for American stocks
the arbtrage houses were again buyers TO
quite a large extent In the local market
Advised Not to Lend.
About the noon hour Secretary Shaw's s
admonition to the depository banks against
lending their surplus funds at high rates
In the New York money market was made
public and this intelligence was succeeded
by a general decline in prices.
1t was not made plain why the depository
banks should not employ their funds In a
market commanding the highest rates. but
the Secretary's announcement created a
asagreeable impression. Trading was
maintained on about the same scale Of ac-
tiyity as OF yesterday. but activity was
largely concentrated upon q small number
of stocks.
Leading features in this respect were
the United States Steel shares, and no.
tably the common stock. Amalgamated
Copper, Union Pacific and Reading. Great
Northern preferred advanced very rapidly
In the early dealings, but later lost the
greater part Of it's improvement The
course of that stock. together with tho
exceptional activity In the United States
Steel shares. was accompanied by very
positive predictions that an announce
ment Of the disposition of the Great
Northern ore lands to the Steel corpora
ton could be expected next week. New
York Central and the other Vanderbilt
stocks were all extremely strong on the
publication Of the August statement of
lines. and Chicago and North western also
scored an extensive rise on unusually
large dealings for that stock.
. Activity in Reading.
The activity In Reading was attended by
reports that arrangements were under way
looking to the taking over by another cor
poratioh of the company's coal lands. The
wide and erratic fluctuations in, Union Pa
cific. and. indeed those elsewhere in the
railway list. seemed. however, to be at.
tributable mainly TO nothing more than the
technical market circumstances.
Price movements In the industrial and
miscellaneous issues and In the traction
stocks were similarly irregular.