Los Angeles herald., 1908-02-26
NEW YORK STOCK
AND BOND MARKET
BY Associated Press.


NEW YORK, Feb. 25-The neglected con-
dition OF the stock market was unrelieved to-
day. Rather after a temporary increase of ac-
tivity in the morning 1t was aggravated in the
later dealings Business originated almost en-
tirely within the walls of the stock exchange.
An example of the character of the transact
tons and of the lack of consistency in the
traders arguments was offered in Union Pa
cifc The books of that company for trans
fers Of stock close tomorrow and consequently
the value of the 2h per cent dividend will be
deducted from the price Of the stock One
party Of traders bought the stock the ground
that the deduction of "a points from the price
tomorrow will make 1t look cheap and invite
demand Another party sold 1t the ground
that shorts had been covering in the stock be-
cause they would be obliged to pay the amount
Of the dividend in carrying charges tomorrow
but would be prepared to put forth short lines
when the dividend is deducted.
The professional traders themselves designate
such market as trading jack knives as
they derive as little profit from it as school
boys engaged in that transaction. The bear
party among the traders tested the market
with short sales at the outset on the assump-
tlon that the treasury call upon the national
banks except those of the smaller class for the
return of s35000,000 of government deposits
during March might prompt some liquidation
of stocks This call has been clearly indicated
by the downward course of the margin of the
governments free working balance Of cash.
Moreover the money supplies now so
considerable that the banks part with some
without embarrassment while the treasury
will be correspondingly strengthened in its ia
clities to help with relief for the money mar
ket when cash begins to leave the reserve CEN
tiers to move the crops. The rapid retirement
OF bank notes confirms the need of contraction
in the circulation deposits of lawful money
for that purpose at the treasury. having also
exceeded s90OO,OO0 for February, although that
figure was fixed as the limit for retirement
III any month by the amended law of
last winter. /.
These returns of treasury deposits and re-
tirement OF bank notes help TO explain the
moderate degree in which cash has been accu-
luulated in the central banking reserves since
the panic passed and also the absence OF any
iefux movement of gold exports Other reasons,
Arwever, discernible.
The beginning of weekly statements of the
condition by the New York trust companies in
yoiye a heavy accumulation of cash reserves
by these institutions. which made import
neither the banks outside the reserve cities
nor the banks in reserve cities inclined
to place as large proportion of their reserves
on deposit with the central reserve banks as
was done last October. and 1t is still permit
tod by the national banking law. Incoming
reports of conditions of the banks February
II, in response to the call of the comptroller
shows that the reserves are being maintained
at high point. Public and legislative discus
sion OF the desrability of raising the require
ment for actual cash reserves In banks outside
the central reserve cities doubtless has Its in
fluence on this situation. Poor earnings, fears
of coming dividend reduction and an injune
tion against the distribution of a dividend al
ready declared were specific causes for weak
ness in individual stocks today Repurchases
were made of stocks sold short and the days
changes in prices of no consequence.
Bonds were easy. Total sales, par value, 49,,
U3S O00 Erie general As broke points to So.
Government As advanced y per cent on CALL