The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-10
ADVANCE Is CHECKED
Stock Market Tone Heavy
from Opening of Session.
THE BANKS SHOW BIG LOSSES
Withdrawal of Half the Treasury
Fund of SI2,O0O,OOO said 10 Have
Been Only Partially Responsible
for Decrease-5Iueh Money Shipped
to Boston Because of Copper.

New York. Feb. 9.-The more optimistic
feeling that has been making itself felt
in the stock market for over a week past
undoubtedly received something of
check in the action Of the market yes
terday and to-day Yesterday it was
plain that a large amount of profit taking
by spectators for the rise was going on,
even if stocks were not actually pressed
for sale, and if, in certain stocks there
We're still evidence Of accumulation. To-
day the market was heavy from the very
beginning of the stock exchange session,
which presumably meant that realizing
sales were being continued with greater
freedom, and from which the fair infer
ence was that doubt as 10 the immediate
course of the market was becoming more
of a factor.
On the other hand. the consensus was
that the positive weakness of the market
that developed to-day in the last half
hour of business would not have been
shown had it not been for the publica-
ton of "a weekly bank statement that was
much more unfavorable than had been
looked fer. Estimates were yesterday
that the banks would show loss in
cash for the week of. in round numbers
between S3,50e,0U0 and Si.5000U. The
losses. as to-day officially exhibited. reach
ed the surprisingly large sum of $l2,90,6C0;
and as bank loans increased over Sl5oJ.000
there was o decrease in the surplus re-
serve of 81 2SS.0o0, which. Of course, cut
deeply into the reserve total and brought
the net surplus down 10 very low figures
for the time Of year.
No Reason Given for Decrease.
It was commonly supposed that some
large financial operation during the week,
concerning which the public had been un-
informed was responsible for this show
ms of the clearing house institutions, but
in banking circles, as well as in commits
sion houses. ignorance was professed as
TO any such particular transaction. The
explanation made by bankers Of the large
loss in cash that had been sustained was
OF tw0fold character. The withdrawal
10y the Treasury Department of half of
the 100000 special deposit fund placed
10y the government with the banks
throughout the country in the latter part
OF the year figured in this weeks opera /
tiCus of the banks. and although only
100000 of the S5,050.090 thus taken in
by the Treasury had been deposited with
the banks i'm this city, it was said that
the local banks had been iu reality COM
PEELED to furnish the Treasury with the
entire amount required, inasmuch as out (
uf-tOwn correspondents of these banks /.
covered into the Treasury by checks /
drawn upon New York the sums of money /
asked from them.
It was further stated that during the |
week there had been quite large ship /
ments of money from this center to Bos- /
ton where, owing 10 the pronounced up
ward movement in copper mining stocks. /
firm demand for money Is at present /
experienced. The call money rate I'm /
Boston has for some time past ruled de- /
cidedly higher than in New York.
BE this as it may, the figures of the /
bank statement to-day were not well re- .
ceived In Wall street Selling Of stocks /
was intensified after the statement was
published, and in nearly all the active /
issues considerable declines were record
ed at the close. In only q few instances,
however, were these declines more than
a fun point and particular stocks, such
rs American Sugar Refining, Anaconda
Mining, and the Mackay companies.
made advances. The rise in Sugar Re
timing common was accompanied by ru-
mOrs of contemplated advance in the
dividend rate on the shares.
Because of all this, when the markets
opened off, spectators ut the end of the
week were somewhat more confused than
they recently have been; but il is still
fair to say that hopefulness regarding
the future Of values was stronger, at
least, than IL was ten days ago
Traders Condemn Treasury Action.
There was naturally not "A little con-
demnation expressed to-day in the
financial district concerning the policy 4
adopted by the Treasury Department in
Withdrawing money from the banks at
time when such action was wholly I'M
called for by the state of the Treasury:
and this censure was not mitigated by
the known circumstances that a week
from to-day another SG.000000 will be
taken into the Treasury from the banks
and viii doubtless. as in the present in
stance have 90 be provided wholly by
New York Institutions.
But II may be found that some compen-
sation for what has occurred will be at
iorded i'm the object lesson thus present
ed, TO Congress. OF the working under
The laws as they now stand OF the sys- D
TEN Of taking care Of public funds. Force
viii undoubtedly be lent by these facts
10 The pleas now urgently made TO the
rational hwmaking body for the enact
ment OF legislation by which the govern
iieHt FUNDS above a certain balance. CHS
toms revenues, as well as receiDfs
from Internal revenue taxation. will
De currently deposited with the national
banks. and only circulated as the neces-
stiles OF the government require,
At any rate the prospects for such leg
islation have not been impaired by TO- |
days events.