Los Angeles herald., 1907-12-17
NEW YORK STOCK
AND BOND MARKET
BY Associated press.


NEW YORK, Dec. 16.-The repressive nfu-
erce on the money situation was discernble to-
day in the stock market. The call money mar
ket was stiff and rates in that department
were higher than on Friday. The slow i'm
provement in the banking position goes on, but
last weeks more conservative view OF the time
required for carrying out the remedy con-
tinued in force and little more Is heard OF the
probability Of restored in the money-mar-
ket intervening before the end of the year.
notwithstanding the substantial recuperatlon
effected in the New York banking position
exhibited in the weekly bank statement
On Saturday the banking authorities were
evidently preceding the day with the work of
building up their reserve strength. The de-
felt still existing of over s4O,0Oo,OOO below the
legal requirements is a renewed warning.
As there Is no indication Of the inlmedi-
ate return to the central reserve banks of
great sums withdrawn by depositing banks the
New York banks driven back upon the neces-
sity of scaling down the credit deposit In the
loan Item. 1t that process that was re-
sponsibe of credits not being enforced by the
New York banks mark the passing in some
doing of the acute stage Of the money crisis.
The New York banks loans expanded freely
during the crisis as a part of the general
policy Of supplying freely all requirements,
even by wide encroaohments upon reserves
while the emergency called for such treatment.
The secondary retrenchment now in progress by
the New York banks is regarded typical TO
some extent of kind of liquidation which
may have to follow the first extension of
emergency credits in commercial affairs at
large.
1t is dread of possible prolongation of
process of commercial liquidation which weighs
on the stock market A more direct object
sought by the New York banks is to offer
attraction for the return of interior banking
deposits to this market by keeping the money
late attractive here The returns OF these de-
posits is belated to an unexpected degree and
it is evident that the sentiment which prompted
their withdrawal was something more than
transitory
Fort of the comptroller Of the currency. the
distinctive part played by panic amongst the
bankers themselves in precipltatng the crisis
is dwelt upon. The conclusion reached in
effect by the government officials seems to be
that he present banking reserve system was
broken down and practically discredited by the
events of October and November The spirit
OF dfstrust which prompted the with travail OF
deposits from central reserve and reserve CEN
ters by the smaller banks of the country seems
in fact to be slow in passing.
The currency premium persists in New York
and bids for New York account were effective
in securing all the arrivals OF gold in the Lon
don market at an advance in the price.
Discounts hardened in London in response
The sustained demand of the New York bank
ers for gold is arousng uneasiness in London
and Paris over the ability of those centers to
take care of the government position at the end
of the year. Reports from railroad traffic Off
Gals We're less decisive OF the contracting
tendency of their traffic. but effective i'm
provement was shown. The principal weak
ness in III, days stock market among
stceks associated with the metal industries.
rs prices started higher and then made some
final recovery the extreme declines were par
TALLY neutralIzed
Bonds irregular. Total sales. par value.
si,2l6ooo. Cover nment bonds We're unchanged
call.