The San Francisco call., 1907-01-27
BEARS IN WALL ST.
DEPRESS PRICES

NEW YORK, jan 26.-The Wall
street stock market today was sub
tected to severe pressure again and the
fall in prices, added to yesterdays de-
cline. forced level generally lower
than that Of the low level of Friday of
last week. The mystery of the sources
and the motives of the selling increased
its effects on speculative sentiment.
The tendency of the market TO rally
from time TO time disclosed that short
selling by bears was holding share
In the responsibility for the weakness.
The most pronounced of these rallies
came after the appearance of the bank
statement. Notwithstanding the weak
showing of the banks. Only $3.246. 400
of the expected S5.0OO,000 cash gain ap
peared and the $22.00O.0O loan expan-
sion swelled the deposit item and re-
serve requirements to an extent which
reduced the surplus of S2,S97,s00 to S15,
562,SO0, which compares with a surplus
of 15,S29,S20 at this time last year.
The loan increases were attributed
largely to the taking up OF railroad
note issues to which were added today
50,00O,000 of one-year notes by the
Vanderbilt railroad companies. Reports
from the bankers having handled the
sale of these notes of the eagerness
with which they were bought and the
higher relative price they were bring
ing compared with recent issues had
an influence upon the stock market as a
possible indication of a release of capi-
tai for investment from the tied-up
condition which has threatened a check
to enterprise.
The report from washington that the
intended recall of Government deposits
from the national banks on February 1
and afterward was only to apply to the
s12, 900, 900 deposited in December, and
not to the S30.0O0,OOO which had been
on deposit since last September. cor
rected an apprehension felt yesterday
OF severe pressure during February
upon the money market from that
cause The market did not fully hold
its rally and the closing tone was ir-
regular.
The total sales of bonds, par value
were s1,O36, 900.
The Financier says: Last weeks Of
fetal statement of the New York as
sociated banks showed a smaller gain
in cash and a greater expansion of
loans than was looked for. and because
of an important augmentation in de-
posits, and consequently in reserve re-
ouirements the surplus reserve was
considerably reduced. The amount of
such surplus reserve appears, however,
to be ample for present needs of the
banks, so that there is no occasion for
apprehension of materially higher rates
for money in the near future. The cash
gain reported by the statement was
s3,246. 400, or somewhat below that
which was generally estimated on the
basis of the traceable movements of
money during the week. The interior
bank changes were only moderate in
amount and the subtreasury operations
resulted in comparatively small gain
to the banks. thus accounting for the
light increase in cash. Deposits in
creased S24577.2 200. which amount was
only little below the sum of the ex-
pansfon in loans and the increases in
cash, so, therefore. the statement made a
good proof. The required reserve against
general deposits was augmented $6,144,-
900, deducting from which the gain in
cash left $2.S97,900 as the increase in
surplus reserve to $15.562.S00 Comput-
ed on the basis of deposits less those
of s16633.500 public funds. the surplus
Is $19,703,675. Loans were expanded
s22,o28.100. probably the result chiefly
of loaning on securities returned from
Europe and possibly other corporations