Los Angeles herald., 1907-10-30
WALL STREET
DEADL YQUIET
LITTLE CASH ON HAND; BANKS
REFUSE CREDIT
RISE IN PRICE OF COPPER is
NOTABLE
FinancIers' Pool Refuses to Advance
Cash and Spectators Are Ex-
perIenclng an uneventful
Period
BY Associated Press.

BY Associated Press
NEW YORK, Oct, 29.-The banks asserted
their influence determinedly, and in the estima-
tion Of holders of securities nE margin ruth
lessly today, for the retrenchment Of borrow
Ing on stocks. The announcement of the disso-
luton Of the bankers pool YESTERDAY, wnlch
had provided funds last week to save the mar
ket from Generalization. was accompanied py
broad intimations that the pool had not peen
intended to bolster up speculation, or 70 at
tempt anything like revival OF strength IN
stocks by use of borrowed money.
Advice has been conveyed to stock brokers
in terms not to be misunderstood that the
banks would frown upon any marginal opera-
tions in stocks
Brokers, as a rule. have refused to accept
orders for such transactions. The market is
thus reduced to exceedingly narrow dimensions,
operations being restricted practically to buying
securities. outright for cash.
The lending of the money of the bankers
pool last week seems to have been with puaI =
pose to tide over weakness to save the general
situation Some readjustment Is now In progress
and some accounts are being forced Out Una. q.
seemed to have been carried over last . %een
with this condition attached. Gaining OIL loans
was quite a large scale.
with the buying demand limited to those
with cash resources in hand, the erect on
prices was not surprising, but was more UT
less disturbing.
The line Of the discrimination exercised
agair It borrowers not clearly defned py
any announcement behalf of the bankers,
nor zas 1t Indicated by the character OF the
stocks which were being sold out these includ-
ing high grade and active stocks for the most
far effected has its direct influence In reducing
the severe pressure the money situation,
but the policy pursued by the banks has IN \
mind the wide effects the situation IN the
attraction offered to cash investment by the
low prices of securities
This attraction operative today potn ior
home and foreign account. The consideraDie !,
volume of the days market, while 1t marked
the severe sacriflces Of coerced borrowers, may
be safely assumed also as measure OF an
sorption by outright cash buying since prac-
tically no other class Of buying was feasible in
the dearth of banking credit to take up pur-
chases on margins.
Buying of this kind is relied upon as an Inn
portant aid to tho unlocking Of cash sources
which have gone into boarding. The purchase
of securities here for foreign account also Is a
material factor in furthering the control OF the
International exchange which may enapie auui
tiona. imports of gold.
The response OF the foreign money market
yesterday to topheavy gold engagements lot
shipment to New York was pronounced. IN, Ihe
aslvance in the discount rate of the Imperial
Bank of Germany by a full per cent ihdi-
Gated the determination to oppose Withdrawals
of gold from that market. The Bank OF Eng
land was reported as discounting nothing al
less than per cent. which would indicate ar ar
Intended drastic alteration In the present ~
Der cent minimum discount rate.
There was a cancellation of part Of one OF
yesterdays gold engagements. and the recov-
cry in foreign exchange today was on a de-
mand attributed to veering against some OF
Yesterdays gold engagements.
Another rise in the price Of copper was the
measure Of additional buying for export. There
was a sharp reaction from the violent early
advance in the London price of copper. It is
noteworthy that, Notwithstanding the famine
condition in the oney market, there are still
outstanding 5000. $50 of government per cent
bonds which were redeemable on July | last,
and which ceased tc bear interest on that date.
cut in prices of meat by western packing
houses wau an Incident Of the readjustment
o,, 70 tpcft nc demand for products.
i'he appearance of some supplies of money at
the stock exchange at the late hours OF the
session indicated some rallies, but the days net
declines were severe.
Bonds were weak Total sales par value.
ss42eooo. United States bonds were unchanged
on call.