The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-10-30
ALL BANKS
RESTORED TO
CONFIDENCE
Low Stock Prices Cause
Enormous Demand on the
Part Of Investors.
NO SUCH BOOM In 70 YEARS
Further Conferences of Bankers
Not Necessary and Everybody
Gratified That Last Vestige
of Storm Has Vanished.
Stock Market Active.
NO SUCH BOOM IN 20 YEARS

NEW YORK, Oct. 30.-Banking con-
ditions approached the normal in this
well in hand that no further confer
ences of bankers are anticipated. Runs
on all institutions may be said to be
over, and Wall street is expressing
qualification that the storm has been
W Gathered.
The banks have improved their posi-
tion by calling loans. Liquidation of
this character is well absorbed, con-
sidering the fact that many Stock Ex-
change houses are discouraging new
commitments on a margin basis and
are making purchases only for cash.
Bankers declare today that the clear
ing house certificate plan Is working
out smoothly, and is rapi> y bringing
about normal conditions.
The fact that the weaker banks in
this city are recuperating from the Sc
we're financial setback was clearly
shown today, when their balances were
adjusted through the clearing house.
All but one of the five or six banks
whose position has been regarded as
most vulnerable had balances due them
at the clearing house this morning, and
the one having a debit balance owed
very small sum.
The stock market was active.
A favorable feature was the tremen-
dous buying of stocks in small lots for
Investment as reported by the big
brokerage houses Purchasers are pay
ing cash and the volume of business
during the past week runs well into the
millions.
Not in a score of years has Wall
street experienced such flood of buy
ing orders in odd lots for transfer to
the purchasers. The majority of these
orders are for blocks of stock of five,
ten, twenty-five and fifty shares, while
sales of one and two shares are being
frequently recorded.
w. J. WelIman, of ]. s. Bache &S Co.,
bankers and brokers, said today that
the amount of such sales by that firm
is between 100000 and $750,000 day,
and that the orders are coming In from
all parts of the country.
"PeopIe are buying stocks for invest
ment in small lots and are paying cash
for them" said Mr.. Wellman today.
"This is bringing thousands of dollars
in cash to the market and is assisting
materially in relieving the situation.
Not in years has there been so much
buying for cash by small investors, who
are having the stocks transferred to
them. / think 1t is safe to say that
there are more than 100000 names of
stockholders on the books of the va
rious railroad and other big corpora
tions than there were a year ago."
"Never in the, ten years of my con-
nection with the firm of c. I. Hudson
& Co." said a representative of that
firm today "have / seen so much buy
ing in odd lots for cash. We have wires
in twenty-six cities, and are making
from 25O to 300 transfers daily"
Another representative of a promi-
nent brokerage house said:
"The buying for cash is terrific. I
never saw anything like it since our
firm was established twenty years ago..
Money is coming in from outside cities
to pay for stock which is being pur-
chased in small lots, in the majority of
instances, for investment. There were
large numbers of such purchases during
the decline of the market in March
last. but the sales for the past week
have greatly exceeded those made dur
llR liidL DtIlphs tAOppAi)lJ ~ DGi NCilNs
of the stock purchased in small lots is
being taken out of the market
The stock market became quite buoy
ant in tone late today. The buying
was in small lots. but the demand
showed q degree of urgency that indi-
Gated the necessities of uncovered
shorts. The level of prices rose quite
generally over last night and such
gains were established as "a in Cana
dian Pacific, in st. Paul and General
Electric, 1% in Union Pacific, 1k in
Northern Pacific and Amalgamated
Copper, IL in American Smelling and
1 in u. S. steel preferred.
The market gave proof during the after
noon that the necessltous liquidation had
been completed. The demand for stocks
was very light. but the supply also mani
testify was becoming scarce. Bids were
advanced widely from the low prices OF
the earlier part of the day in seeking to
Obtain even small lots of stock Prices
i'm many cases recovered fully under this
process. and some fractional gains We're
established over last nights closing level
of prices. The easing of the call loan rate
at the Stock Exchange was evidence of
the relaxation of the tension of conditions,
although the liquidation of accounts which
had depressed early prices so severely
was responsible for this in All important
degree.