Los Angeles herald., 1907-10-27
ALL QUZETM
WALL STREET
ACTION OF MARKET TOWARD
RESISTANCE
SOME INACTIVE STOCKS ARE
DEPRESSED
Action Of Savings Banks In Requiring
Notice of Withdrawal Has
I an Encouraging
Effect
BY Associated Press.

NEW YORK, Oct. 26.-Quiet conditions
reigned throughout the two hours session at
the stock exchange today. Owing to the rule
of procedure by which loans made on Friday
carry over until Monday OF the following week
the immediate borrowing OF money was not
necessity and the direct influence of the money
position to that extent in allegiance.
The market was not active and the influence
toward repression of speculative activity or
dealings on margins was asserted with un-
diminished force. The tone of the market was
regarded nevertheless as reliable index OF
the prevailing sentiment over the hnanciai
situation. The expression of Increased con-
fidence through this medium was unmistalS-
able There occasional reactions and
some individual stocks. especially the inactive
list, were severely depressed.
The action of the market was clearly
toward resistance to any elements OF depres-
sion and the closing tone was strong. The
banks caused momentary wavering report
of deficit below the legal reserve exercising
an inevitable sentimental influence. Con-
sideration of the statement detracted from Its
depressing influence. In view of the extra
ordinary events of the week and the compli-
Gated cross currents in the situation the de-
crease of less than s13o00,ooo in the reserve
held was considered not immoderate.
The necessities of the situation and the
curious measure of relief adopted were ex-
planatory of the S10S64.7o0 loan expansion. 1t
was fortunate under the circumstances that
the clearing house banks had started the week
with SO considerable surplus reserve as the
S11, 1872, ,63O so that the weeks heavy demand
has carried the reserves only s1,233,3OO below
the legal requirements. showing or greater
strength than has been made In any former
periods of only comparative stress. 1t is
notable also that the United States deposits
included in the statement are only Sl3, 613.50o
greater than in last weeks statement, where
as the actual addition of government deposits
during the week is known to have been much
greater.
There is a ruling in force of the treasury
department. never availed of by the clearing
house banks, permitting government deposits
to be segregated from those against a cash
reserve is required. owing to the high grade
of the securities required collateral against
such deposits Under this ruling regarding the
reserve requirements, the banks would be in
possession, according to the statement OF an
actual surplus of $40, 800. The principle IN
volyed in the maintenance of fixed proportion
of cash reserves by the banks is that OF readi-
ness for a sudden emergency against whicn
there is no prohibition of the use of reserve
even down to the point OF exhaustion Ine
hank statement was regarded, therefore. as
showing a reassuring degree of strength In the
banking position. .
For the conservation OF this position the de-
-eision of the united clearing house to issue
Nearing house certificates seems to orer en-
Pc security by acceptance between the banks
these certificates for settlement OF DEBIT
llances. the preservation of the cash deposits
Y5om depletion is assured. The decision of
0Sne New York savings banks to avail tnern-
serves Of the permitted requirement OF sixty
days, notice of Withdrawals form another sate-
ruard against a march of the unreasonable in
the boarding away of the country's credit
basis in the times of greatest necessity.
Finally, the inauguration of gold imports
onens a channel of replenshment of the basis
of banking credits which promise effective re-
lief The joint effort of those features was
the feeling of encouragement with which the
week closed in Wall street
Bonds were irregular. Total sales, par value
s2 266, ,OOO Government As registered, however
declined ", the coupons y per cent The As
registered S1a per cent and the coupons per
cent in the bid price on call during the week.