The farmer and mechanic., 1907-03-19
Stocks and Bonds.

New York. March 16.-There was a
further volatile recovery in stock
mark ct prices today from the depres-
sion of Thursdays market. An
over-extended bear account was an
influence in the ebuliency of the late
upshOot Today's trading showed a
very large and confident absorption
Of stocks going on and confidence in
the situation seemed to be restored.
The complexion of the bank statement
had something to do with this. The
reduction OF the deposit item by
scaling down of loans proved sufficient
to reduce the reserve requirement
more than prOpOrtiOnately to the cash
reduction, and so to conserve an adj
dition to the surplus. The loan
item is supposed to include the large
preparations for the Friday settle
ments of the earlier part of the week
for greater effect on the averages than
the loan contraction by stock liqui-
datiOn later, so that the effect of the
loan reduction is expected to be car
ried over into next weeks statement.
The dimensions of yesterdays money
settlements are indicated by todaY's
huge clearing house exchanges, which
rose to $67S,719,315. The only time
| TINS figure has ever been exceeded
| in the history of the New York clear
ing house was on January 3, 1906
| When the annual settlements resulted
/ IN exchanges of $6S6,S44.S91 Sterl-
! ing exchange ruled at yesterdays low
| level today indicating the power of
) New York to withdraw gold from
/ London, unless that step should be
| deemed lmpolitlc. Funds We're more
! freely offered in time loans today. with
/ the restoration of confidence ana q rise
! in the New York exchange at Chicago
| to par has occurred. The tenor Of
| the United States Steel annual report
| especially the reference to the sus-
| tanned level orders reciVd since tn
| first of tn Year was an influencing fac-
J tor in the strength of the market So
also was the tone Of the mercantile
agency reviews, showing an expand
ing volume of business through the
country. Hasty profit-taking made the
closing of the market irregular, but
there was excited buying still in prog
ress Total sales Of bonds, par
, value, $1,S60,000
| The collapse in prices of stocks
which has occurred this Ween has been
so sudden and 50 violent as to leave
| opinion dazed over the meaning Of
| the demonstration and Its probab BILE
! Interior consequences. The extent Of
/ of the declines has been so portentOus
the volume of the offerings which have
deluged the market have been so over
| WhelminS and. at the same time the
usual consequences of failures or fin
! ancial disasters have been so entirely
| lacking as to leave an uncanny effect
| on the minds of observers. The ex-
/ tent of the slump is the more remark
able as coming on the heels of a pro-
/ longed decline, which had already pre-
! SumablV gone tar to dOScOunt the un-
/ favorable factors which We're supposed
/ to be the influence on the markett
The cumulative effect of the last spas
/ mOdic drop was all the more acute fOl
] this reason The fall in prices is Sc
much greater com pared with such
previous occasion as the May panic
of 1901, with which the present week
is most generally com pared for Vio-
lencc of fluctuations and ndiscrimi-
nate unloading Of stocks, rs it follows
such prolonged fail, while the 1901
panic broke in upon period of buoy
ant speculation at rising prices.