The sun., 1907-12-29
FINANCIAL AND COWMERCIAL.
SATURDAY. Dec. %.

tors for the decline to recover their stocks
shat set In with rush yesterday caused
ehs price OF the leading issues ON the Stock
Exchange TO open to-day in several in
stances full point above their close yes,
terday afternoon; and ip the first three
quarters Of an hour OF business the buying
continued with such effect that consider
able further gains were recorded. Then
the inevitable profit taking began. the
same houses and operators that had figured
in the buying playing an equally copspicu-
Gus part in the selling, and the m arket
declined so that a good share OF the early
gains were lost. The majority Of stocks,
however. closed at advances. and the days
results plainly testified to the existence
of an oversold condition Of the mark ct,
or what was an oversold condition a day
or two ago. The dealings. OF course, were
Of an ultraprofesslOnal order. but they
were significant Of a greater elasticity in
the market than has been commonly sup
posed. Taking the transactions Of the
week as a whole they showed very plainly
that speculative selling of stocks does not
now result in any appreciable amount of
genuine liquidation; and it does not appear
possible that speculative sellers OF stocks
recently have managed to extract any
profit from their ventures II indeed they
have not been compelled TO suffer losses.
Developments to-day we're all along the
line of yesterdays encouragement, The
premium on currency was depressed to
inf md fbasf Hunfa
Of country banks here reported an in
creasing number of offers from their clients
to sell cash in the New York market. This
in all reasonable probability marks the
near end of the currency premium The
same tendency also exhibited itself yes
terday in an entire absence of demand
for new gold in London, which caused a
large quantity of money previously taken
in London for our account to be resold
there. This gratifying occurrence and
the subsdence as well Of German requests
for funds led to n general rise in consols
and other securities in the London market
and put a very pleasing face upon the
probabilities regarding the annual financial
settlements in London this week. Indeed
an early reduction in the Bank Of England's
discount rate was to-day talked OF. The
one incident of importance during the day
here was OF course the publication Of the
weekly bank statement, which was the
best report Of its kind that the Clearing
House institutions have made for several
months There was a decrease in bank
loans of $I7, 1852 400 and an increase in cash
OF nearly 50 100000, or more than three
times what was commonly estimated yes
terday. This served to diminish the def
icit in the surplus reserve by slI .SSO, $50
the largest decrease in any one week thus
far since the deficit came into existence
and brought the figures OF the total deficit
down to a little over $40, ,OOO .OOO IL became
known during the day that the Treasury
had issued a call for the return Of a small
portion OF the public money now on de-
pOsit with the banks, an event that had
been wholly anticipated in view of the re-
duction of the Governments working
balance to less than 81 OOOOOO The days
stock market was wholly without special
feature and was composed entirely Of the
general movements to which reference has
been made.
The events Of the week from a financial
point af view were such as 70 again en-
phasize the conclusion that the stock market
several weeks ago passed the crisis in its
affairs. The best possible proof Of return
the altogether inconsequential Withdrawals
Of money from the savings banks by de-
positors who sixty days ago gave notice Of
their intention to take out funds. Other
indications in the same line have been the
disappearing premium on currency. the
rapid extinction of Clearing House GER
tificates in the interior centres and the fact
that practically a resumption Of full cash
has -,
city. There are very few banks here at the
Homent who are not furnishing 10 Gust om-
as all the money that is required for pay
Ppbls and other necessary purposes. and
mere are really no limits now placed upon
the Withdrawals Of actual money from the
banks by depositors except in cases where
there is reason to suppose that the money
is intended TO be sold for the trifiing pre-
MUM still commanded for cash funds
Many announcements were made during
the week Of the deferring or reduction of
corporate dividends, but they we're all
anticipated and their stock market effect
appeared to have been more than dis-
counted. The buying OF commercial paper
by the banks has Increased and instances of
further closing down Of mills and d5faeteriAe4
are now very few. In their place is COM
ing 20 be substituted news statements that
manufacturing plants that have closed down
are on the point Of opening again. Perhaps
the one matter that has been more cheering
10 the business community than anythInx
else has been the decided increase that has
been Witnessed in the efficiency Of labor as
the result Of such wage reductions and lay
ing on Of men ss have been enforced. The
declaration has been made this week by
more than one railroad president that In
consequence Of these measures of economy
the actual efficiency OF the remaining work.
ing forces Of the railroad companies haa
been enlarged threshold %E3 1
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