Los Angeles herald., 1909-01-28
NEW YORK STOCK
AND BOND MARKET

NEW YORK, Jan. 27.-Prices of stocks were
lifted in various quarters today. The dealings
were not active at any time but the demand
was unsettled by various reports of railroad
deals and the offerings were so inconsiderable
that light buying sufficed to make impress
sion on prices
The plethoric condition Of the money market
relieved the holders of stocks from any pres
sure in securing financial resources. Interest
rates are declining. The interior keeps up an
abundance of ships to the center for which no
employment is found at home. New York
trust companies prepared to comply with
the Is per cent reserve requirement which
goes into effect on February l, compared with
the 10 per cent cash reserve now held, and
these institutions hold large additional de-
posits with depository banks Their own de-
posits have risen well over billion dol
lars and the difficulty Of placing their re-
sources has given rise to discussion of a re-
duction of the rate Of interest paid on de-
posits from per cent now offered.
The pressure towards the sources of issue of
bank notes is another index of the redundancy
OF the circulation. The call upon the United
States treasury for current redemption of bank
notes is great and the drain upon gold
holdings so severe as to give the department
officials much concern. This rush Of notes to
current redemption is not a symptom Of dis
trust Of bank notes but only of the lack OF
demand for theim in the circulation. 1t is
the usual custom for depository banks to sort
out notes of other banks they come to them
and send them to the treasury for redemption
From that point they are sent back TO the Is
because of this that the heavy injection or new
notes into the circulation during the panic in
the latter part of 1907 has never gone into re-
tirement. But their current redemption now
is on an unprecedented scale. The steady re-
lection of these notes from the money circula-
ton is due to inactive business. This and other
signs of slow business discourage large buying
Of securities but the easy money market makes
a disnclnation to sell.
Yesterdays sale of the Chesapeake & Ohio
TO the Hawley interests gave fresh vitality to
stories of the deals and the election of K. h.
Hartman to the New York Central directorate
met an expectation long held in the financial
district The influence of these two incidents
was traceable through most of the, price move
nent during the day. The Gould group was
CONSPICUOUS and New York Central made re-
sponse There was another reduction in the
quotations for copper at the New York metal
exchange and the United States Steel quarterly
report was not liked for the successive de-
cIfnes in the monthly earnings for the quarter.
Reports were current of continuance Of this
declining tendency during January and an in
creasing disposition to cut prices on the part
of smaller Independent steel producers.
The metal fndustrials were heavy in conse-
ouence London was somewhat disturbed by
the stiffening money market and signs of con-
Sestion in new investment issues mil
lion dollars was engaged in New York for
shipment to Argentina on London account
The realizing usual in narrow professional
market modified the days exchanges and the
closing tone irregular.
The pressure to find employment for the
growing accumulation of money resulted in
bond market of extraordinary breadth, strength
and volume. Total sales, par value, SS,996r0O0.
Government Is registered declined a and the
coupon q per cent on call.