The San Francisco call., 1907-02-10
MONEY CONDITIONS
DEPRESS STOCKS

NEW YORK. Feb 9-The stock mar
ket showed a heavy tone from the out
set today and weakened after the bank
statement. This early check to the
recovery of the middle of the week
was accepted as a bad augury for the
renewal of the advance and as evil
dence that covering by shorts has been
principally responsible for the rally.
The decrease of over $4,000, 900 in the
cash holdings OF the banks is difficult
TO trace TO any known condition.
The known movements of currency
since the last bank statement &C
counted for about $4,000, 900. It was
reported that the subtreasury's with
drawal of Government deposits last
week figured in this weeks averages
of the banks instead of last week. but
large Discrepancy would still remain
to be accounted for.
The loan expansion on the other hand
offered to show the expected effect of
the large financial transactions of the
week in the payment of New York City
bond subscriptions and the taking up
of a number of railroad ote~issues.
The time money market today was firm
and active. Sterling exchange rates
were not affected. Large arrivals OF
gold are expected in the London market
Monday and added interest will be
taken in the success Of business on New
York account
Discounts in London rose today
Foreign takings Of the note issues be-
ing made by the railroad companies
are establishing foreign credits in New
York. Reports by mercantile agencies
of some quieting of spring demand and
retarding of collections were given
consideration, although the tendency
was attributed to weather conditions
principally. The market, closed weak
and at considerable declines.
The total sales of bonds, par value,
amounted to s706,000.
The Financier says this week: LAS
was expected from the loss of cash
reserve. which was indicated by the
estimates that were based upon the
traceable movements of money last
week, the official statement of the New
York associated banks was of an un-
favorable character. The increase in
cash was much greater than that which
was estimated, the loss being s12,077,-
500. whereas the estimates indicated a
reduction in this item of less thar
$4.750.000. So great a discrepancy be-
tween the official and the estimated loss
cannot well be accepted. Even making
all allowances for the decrease resulting
from the interior bank movement from
treasury operations, there would be g
considerable sum which could not be
i lldCCu, anu IL otClUb pTODdDlt
that payments for New York City bonds
which were effected on Friday were
largely made through transfers from
banks to trust companies.
The deposits decreased $11,157, 500
which amount very nearly agrees with
! the sum of the loss in cash and the
increase in loans: therefore. the state
ment made a good proof. The required
reserve against general deposits was
reduced s2,7S9,375, deducting which from
the loss of cash. left $9,28S,225 as the
decrease in surplus reserve to $3,345,-
SIS. Computed upon the basis of de-
posits, less those OF $15.47s,3o0 public
funds, the surplus Is s7,215.450.
Loans were expanded by the small
amount of s1,51S.900. and this is some
what surprising because the stock mar
ket operations of the week seemed ts
indicate quite liberal loaning, by the
banks at least, as the result of more
free offerings of money. 1t may bt
4 noted, though, that the statemenr
showed an excess of s33.750,00O loans
over deposits, an increase of more thar
s12,750. 600, compared with the previous
week.