Los Angeles herald., 1907-12-07
WALL STREET
LOSES NERV We
BANK FAILURES DEPREss PRICES
OF STOCKS
Trouble in Kansas City and Pittsburg
Has Bad Effect on Days
Trading on New York
Exchange

BY Associated Press.
NEW YORK, Dec. 6.-Todays stock market
lacked much of the animation OF that of yes
terday. but was even more irregular in its
movements Th tendency until near the end
OF the day was to a higher level but without
he vigor of tho spurts which carried up prices
Yesterday
The heavy tone nj the outside was attributed
to the news of the closing OF national bank
ut Pittsburg. The effect was shorter hVeu
and less pronounced than that of the Kansas
City failure of the day before, and i'll fact tne
suspension was soon seen to be of much less
Importance. The Kansas city failure, on the
other hand, continued TO create q bad impress
sion. and its influence extended to foreign
markets
Another unfavorahle influence of stocks was
the sustained premium on currency which was
paid on some large amounts during the DAY
and a rather firmer tone OF the cali ffioiiss
market The recovery in the currency pre-
MUM was SAID to be due partly 10 the de-
mand for weekly pay rolls. Inc fittsours
bank failure also had some influence on tne
demand for currency. II is evident that 50
long as cash resources are so much held VI
smaller banks throughout the country, as the
responses to the controllers call reveals that
they are there will be vast curtailment OF
tho usual facilities of exchange by checks Oh
tho banks IN the central portions
The lack p- the usual resources Tor use q
such partial substitutes for money ana wnicn
perform many OF the IuuCtlOnS VI ihvINs -
normal conditions of credit, undoubtedly ac-
counts in large pari for the persistence OF the
premium on the currency Until the nanks
outside of the central reserve cities avail them
selves of their privilege under the banking laws
Of each deposting one-half or two-ffths or
their reserves in the central reserve panks
the dislocation OF the domestic exchange Will
continue to a greater or less extent.
The significant fact in the day s news was
he fall to par in the New York exchange rate
at Chicago for the first time since the closing
of the Khckerbocker Trust company ana the
decline to disco unit of the New YORK eN
change at Boston. The hardening OF the eau
money rate may have had n connection Win
he payment of So 100000 installment on Great
Northern new stock, which was made today,
1t has not escaped notice that the suduen
rise In the Hill. stocks, which started the raiS
IN stocks has come very opportunely for Stock
FOLDERS who had the payment to make today
and one of s1t,625.000 on January for an in
stallment of subscriptions to Northern Pacinc
new stock The expanded dealings in stocks
which have accomplished the week s rise IN
prices must also have increased the borrowings
OF funds OH cali Tho estimates or the week
currency movement gave nothing TO account
for the frner tone of call funds, "a liberal
cash gain by the banks being indicated. me
shipuents 10 the interior were the smallest
since the heavy demands in that direction de.
veloped and the continued receipts OF imported
gold made more than an offset, the net gam
resulting being apparently upwards OF Sb,o0Vooo'
The weeSs operations in stocks seems to
promise an expansion of the loan ltena put q
substantial reduction of the deficit IN the legal
reserve of the banks is hoped for in tomor-
rows bank statement The market showed the
effect of the large reduction in the outstanding
short interest in growing degree as the day
progressed, and closed heavy with surpfls.
ingly small changes considering the uay OF
active fluctuations.
Bonds were firm. Total sales. par value
S4 7SO 600 United states Is advenced "a ana
the As V per cent on call.