Arizona republican., 1907-10-30

| brokers in terms not to be misunder- stood that the banks would frown upon any marginal operations and stock brokers as a rule refused to accept or lders for such transactions. The market
 was thus reduced to exceedingly nar-
 row dimensions. Operations have been
 restricted practically to buying secur-
 ities outright for cash. The lending of | money by the bankers pool last week seems to have been with the purpose to tide over the weakness and save the general situation. Some readjustment is now in progress and some accounts are being forced out that seemed to
 have been carried over from last week with that condition attached. There was a calling of loans on quite a large scale.
 With the buying demand limited to those with cash resources in hand. the effect on prices was not surprising but was more or less disturbing. The line
 of discrimination exercised against l borrowers was not clearly defined by any announcement on behalf of the
 bankers nor was it indicated by the character of the stocks for the most part. The reduction of loans by banks thus far effected has had a direct in- fluence in reducing the severe pressure
 of the money situation but the policy pursued by the banks has had a wide
 effect on the situation in the attrac-
 prices in securities.
 This attraction was operative today
 both for the home and foreign account.
 A considerable volume of the days
 business while it marked severe sacri-
 fees for coerced borrowers, may be safely assumed also as a measure of
 the absorption by outright cash buy
 ing. since practically no other class of
 buying was feasible in the dearth of banking credits to take up purchases
 on margins. Buying of this kind is
 relied upon as an important aid to un-
 locking the cash resources which have gone into hoarding. The purchases of securities here fo the foreign account
 also is a material factor in furthering the control of the international ex- change which may enable additional imports of gold.
 The response of the foreign money
 market yesterday to top the heavy
 
 York has been pronounced The ad- vance of the discount rate of the I'm perial Bank of Germany by a full one
 per cent indicated a determination to oppose withdrawals of gold from that
 market. The bank bf England is re- ported to be discounting nothing at less than 6 per cent which would in
 dicate an intended drastic alteration in the present 1-2 per cent minimum discount rate.
 There was a cancellation of a part
 of one of yesterdays gold engagements
 on the recovery of foreign exchange today.
 Another rise in the price of copper caused additional buying for export. There was a sharp reaction from the
 violent early advances in the London
 price of copper. It is noteworthy that
 notwithstanding the famine condition of the market there is still outstanding q. .92O. $50 of government four per cent
 bonds which were redeemable on July last and which ceased to bear inter
 est on that date. Cut prices of meat by western packing houses are inci-
 dent to the readjustment going on to
 incite a new demand for products.
 The appearance of some supplies of
 money in the stock exchange in the late hours of the session indicated some rallies but the days net declines
 were severe. Bonds were weak.