New-York tribune., 1907-10-27
STOCK MARKET OPERATIONS.

The stock market yesterday was tame af-
fair in comparison with the highly nervous ses-
sions of the earlier days of the week Prices
held fairly firm. however throughout the two
hour session. and gains and losses were pretty
evenly divided among the active issues The de
cision Of the members of the Clearing House by
q unanimous vote to issue Clearing House loan
certificates to relieve the money stringency did
not become known on the floor of the Exchange
until TWO minutes before the close, so there was
no time TO gauge its effect
The market owed fits stability TO the general
feeling that the financial crisis had been SQUARE
ly met and passed and to the specific announce
ment that S5,O00,000 in gold had been engaged
in London for import by the National City Bank
It was also stated on excellent authority that al
least $5000.00o more would be engaged on Mon
day Another cheerful factor in the DAYS news
was the announcement that the First National
Bank had reduced the rate made on loans ne
gotIdted on Friday and carrying over TO Mon
day from 80 TO 30 per cent The fact that the
runs on the Lincoln Trust Company and the
trust Company of America had been success
fully met by these institutions also helped to i'm
prove sentiment
The prices Of American stocks in the London
market showed substantial gains in all the ac-
tive issues but as on Friday these advances
We're not reflected here at the opening The
marker opened strong, however with fractional
gains IN many Of the leading issues Trading
was on light scale throughout the session less
than quarter of a million shares changing
hands There was evident a desire on the part
or brokers 10 await developments and MANY of
the transactions simply represented evening up
deals There was a sharp drop of a point or
more In prices on the announcement of the
suspension Of another small banking institu-
flara 90
any selling pressure to speak Of and prices soon
hardened again. The close was steady at or
near the best figures Of the day in a majority
Of issues.
The bank statement had no effect whatever
on prices as it was the general opinion that il
old not rightly reflect the important happenings
OF the week in its heavy decrease in reserve
and cash holdings. Surplus reserve decreased
Sl2,4l3,S5O, which resulted in a deficit of ST.
Z553vo IN the legal holdings by the banks This
compares with a surplus OF $5673.675 for the
corresponding week last year and one of SIP
430,925 in 1905. Contrary to expectations the
ioah hsures showed an increase Of S10S64 100
despite the tremendous liquidation which has
Deeh IN progress in the stock market. The
statement shows that many institutions used =
portion Of the % per cent cash reserve which
the law requires them to maintain in meeting
the severe drain entaed upon them by the
crisis OF the last week. Such action was en-
lnently correct, for the law insists upon this
strong reserve simply that the banks may be
IN a position TO face successfully exactly such
crisis as the one just passed through The
statement doubtless reflects not only the heavy
sums which the banks have turned over to the
embarrassed trust companies but also heavy
withdrawals by country correspondents. s,
heaVy has this drain from the dual source been
that the large deposits of government money
were not sufficient TO Offset it, II is also prob
apie that considerable of the money deposited
with the banks last week by Secretary Cortel-
you does not figure in the current statement