Norwich bulletin., 1909-11-12
FINANCIAL AND COMMERCIAL.
MONEY POSITION THE
 FEATURE OF THE MARKET. Halt in Speculative Activity an lnevi-
 table Consequence.

New York, Nov. 1.-The money position was the dominant influence on the stock speculation again today and the topic of principal interest. The re- tention of the five per cent. Bank of England rate was accepted with satis- faction, but it had been anticipated and as result discounted. The infu- ence on prices of stocks therefore was short lived. The building up of the banks proportion of reserve to above the fifty per cent line demonstrated t the efficacy of the measures to that end which have been in force. There were fresh withdrawals of gold for South America. and a violent drop of two centimes in the sterling exchange rate at Paris indicated the waning power of one influence in the recu- peration. This sign of the narrowing of the point of ingress to the Paris money market added to the effect of the tightening money situation in New York, as depriving the speculation con- tingent of hopes of recourse to other sources to replace the credits which are being withdrawn in New York. The weeks export of gold from New York the absorption of cash by the sub
 treasury operations and a renewal of acquisitions on New York from in- terior points for currency have de- pleted the slender surplus reserve of the clearing house banks to a point which is forcing them to reduce their loan account in an attempt to avoid the exhibit of a deficit in the weekly bank statement to be published on Saturday. When the money rate be- gan to rise in New York in response to the first demands of the interior for crop moving currency interior banks made loans in New York on a large scale on their own account to take advantage of the higher interest rate The effect of this was to relieve the requirements upon the New York banks and to form a large factor in the enormous loan contraction effected in New York during that period. Now in connection with the further call for cash from the interior. there has been some scaling down of loans which had been placed directly for account of the interior banks in the New York mar ket. The clearing house banks. in the depleted condition of their reserves, are not in position to take over these loans. The course of foreign money markets alsos throws obstacles in the way of would-b borrowers from New York. The halt'in speculative activity and the dribblng of liquidation such as came into the stock market today seem an inevitable consequence of these conditions. The unpromising outlook thus implied for capital fiota- tions has part in depressing the tone of the speculation. The reception ten dered to new stock issues sufficiently proves the distaste of the investment appetite for these offerings. The spe- cial heaviness of Union Pacific in the days market was partly due to dis appointment over the retention of the present dividend rate in the Southern Pacific distribution. Holders of South ern Pacific preferred stock who con- verted their seven per cent bonds into the common stock when it was called for retirement have hoped for an in crease in the Southern Pacific com mon stock dividend from the six to the seven per cent. rate. The two Hill stocks were under special pressure as well. with the query suggested whether the settlement of a large estate was in volVed in the movement. Arhalgamated Copper showed power of resistance to the prevailing depression. Reports from abroad alleged some buying of calls on the stock in London and Paris. Bonds were irregular. Total sales. par value. $3,s7s000 United States bonds were unchanged on call.