New-York tribune., 1908-12-20
FINANCIAL AFFAIRS
STOCKS DEPRESSED.
Colorado and Southern Issues the
Erception-HeaUy Sh11nkage
IN Bank Loans.

Initial irrae71Iaritv in the stock market was
| followed after a few minutes by the deVelop-
ment of a buying movement whlch earned ,tie
list 70 the best prices of the session; but IN the
second hour q renewal of pressure on American
Smelling and Refining which had advanced
earlier as q result Of the TeaSsurlng sta'ehleil'
issued by President Guggenheim, was the De-
ginning OF a general recession. which was ac-
CELEBRATED hv q sudden break Of about points
in Union Pacific and the close was weak, with
net losses recorded for most OF the issues IN
which transactions had taken place. The Harr1-
man stocks showed no strength at any une'
and their course was IN marked contrast with
the steadiness of the Hill stocks and the buoy-
ancv of the Colorado & Southern issues, all OF
which latter made handsome net gains on the
report that control Of the road mad passed 10
the Burlington. In the bond department, too'
the Colorado & Southern securities were no
ticasblv strong the 4L5s making a maximum
! advance of points on heavy transactions ana
the As gaining IA points The report OF the
r1Ircbase of the Colorado & Southern in the
interest Of the Hill system. although not ON
ciaII,- confirmed was generally credited, and
/ the Importance of the operation in giving the
Burlington and the Northern Pacific an mde-
pendent outlet to the Gulf and TO the COTTON
/ fields OF the South was not oYerlooked- Inc
local traction stocks Were cOnspicUously steady,
and there was large trading in Interborough-
/ METROPOLITAN Az per cent bonds, at advancing
! quotations. a. similar movement occurring IN
| Wabash refunding As.
]
| e showing reasonably close TO expectations. The
/ loss Of cash. indeed was $4000.000 less than the
! preliminary figures had indicated. amounting to
/ Sl6SIL 800; but loans and deposits decreased
! heavily the former shrinking by $23,567,00O and
the latter by $39,6S5,000, the result being a de-
crease Of only 6SS9, ,825 IN the surplus reserve,
/ which still amounts TO the comfortable sum Of
/ SlOOO9 200, comparing with the high record of
/ S65. .35S 975 on August %. The heavy decrease
/ in loans represents only to a minor degree the
stock market liquidation of the week the greater
part of the change being accounted for by the
shifting of loans from the banks, movement
referabe primarily to the advance in money
rates. and perhaps also due In some measure to a
/ design to prevent the disappearance Of the sur
. plus reserve. The statement of trust companies
and state banks not IN the Clearing House shows
an increase of SIG 100000 in the loan item, and
doubtless large numbers of other loans were
, transferred to institutions in the interior The
! statement of condition Of the Clearing House
banks Friday night shows decrease in loans
! double that OF the average statement. or
! s4S,111,500 and a decrease IN deposits amount
ing to the great sum Of 500 The loss Of
I cash is about the same that reported under
. the average system. and represents chiefly the
, heavy payments by the banks TO the Treasury on
account of the Panama bond subscriptions, and
. also the gold exports, Of about S4,000o00.