Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-07-11
Money Market Conditions Prin-
cipaI Topic Today.
STEADY DECLINE OF RATES
Large Deficit in Bank Reserve Ex-
pected Saturday.
LONDON QUIET, GENERALLY FIRM
Days Transactions Marked by Abrupt
Falling Away in Activity and
Very Irregular Dealings.
STEADY DECLINE OF RATES
LONDON QUIET, GENERALLY FIRM
sncc,al nisnntch TO The Star.

Special Dispatch TO The Star.
NEW YORK July 1l.-Notwithstanding
that this mornings report of the transac-
tons between the banks and the SUD-
treasury showed a loss to the former
since last Friday of S9.S66.N0, against the
surplus reserves of SSo6.uO0 set forth III
last Saturdays bank statement. the rates
for call loans showed steadily declining
tendency from the opening of the money
market. II goes without saying that the
whole OF the large unfavorabie balance
which the banks have suffered in their
Operations with the subtreasury resulted
from the return to that institution yester-
day Of some SlloVo.OOc of government
deposits.
Yesterday was the day fixed by the
treasury authoritIes for the return of the
whole amount of the government deposit.
but apparently they are taking lenient at
titUdc toward the banks. as about one
third of the whole sum involved is yet to
be replaced in the treasury vaults.
II difficult to see how the banks can
avoid reporting a large deficit In their re-
serves in the bank statement of this week.
although It Is always more or less ldIe 10
attempt any forecasts of that document.
There was much discussion today with
regard 10 the slow redemption of the ma
tured government per cents, the pay
rnerts against which have been expected to
counterbai the return of the govern
ment funds. but no satisfactory explanation
of the Willingness of the holders to retain
a u0a-iuterestbearing security could be
had
Firm Money Conditions.
Conditions in the time money market
showed no alteration. Sterling exchange
was again weak, breaking nearly one-half
cent a pound from yesterdays high levels
The Bank of England's rate of discount was
left unchanged at per cent, and the banks
weekly statement showed the seasonable
recovery from the low percentage of re-
serve which was reported last week. The
London stock market was quiet. but gen.
orally firm. and the fortnightly stock ex-
change settlement made satisfactory prog
resS Foreign houses were buyers In the
local market upon a small scale.
The days stock market was Character
lied by abrupt falling away In activity
and by very irregular fluctuations in
prices. In the early dealings many OF the
active stocks advanced a point or more
above yesterdays final figures. but the
speculation showed little vigor. and dur
ing the remainder of the business session
quota tons backed and filled under the In
EuenCe of the purely professional opera
tions under way. Interest and discussion
were occupied with the same general set
of topics which engaged attention yester-
day. As is usually the case, however, in
a thoroughly professional speculation, the
5nfluenee of these matters lost ground
with the course of time. The practical
failure OF the Union Pacific and Atchison
bond subscriptions had been commonly as
sumed and carried little further weight
today.
American Tobacco Issues Declined.
All OF the American Tobacco issues de-
clined further. and the amazing attitude
taken by the federal authorities in their
prosecution of that corporation furnished
perhaps the chief topic of discussion dur
Ing the business session
The most active features of the days
market were Amalgamated Copper United
States Steel common, Reading and Union
Pacific and in fact, the transactions in
these four stocks furnished a very large
proportion of the total dealings.
The grain market continued weak be-
cause. perhaps, OF the further considera-
ton which was accorded to yesterdays
Unexpectedly favorable government crop
report.