Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-05-27
NEW YORKSTOCRS AND BONDS
Recovery Of Stocks Followed by
Violent Break in Wheat.
sHRMKAGE IN BOND PRICES
Small Interest Allowances Thought TO
Have Prompted Withdrawals OF
saving Banks DepOsits---Har-
vest Outlook Good.

NEW YORK, May 2e-The recovery OF
stocks today was owing, in large part to
the dispersal Of the rumors of dangerous
developments which came into circulation
while prices were falling yesterday. The
violent break. in the wheat market was
much considered. owing to the far reaching
complications carried with It.
The technical side of the speculation In
wheat was not lost sight Of in taking &C
count of the price movement. especially
the reports that private settlements had
been effected with the shorts In that mar
ket Such settlements, Of course, would
remove potential demand for wheat cal
culated to afford important support to
prices and would incite corresponding ur-
gency on the part of the longs in wheat to
realize. Even such an incentive for liqui-
dation in the wheat market has an inn
portant bearing on the money position and
on needed relief of an expanded loan posi-
ton by the banks of the country.
Lhere was some rumors OF proposal to
reduce the per cent to New York savings
bank depositors. II this movement could
be accepted as an index of falling in
vestment return for capital 1t might
promise a forward movement IN prices OF
bonds and fixed interest bearing securities.
But the shrlnkage in bond prices which
are savings, bank investments and the con-
surplus Of these institutions is the more
evident motive. 1t was contended that re-
duced interest allowance might prompt
posits for direct investment in securities,
which now sell on a higher investment re-
turn than when the bulk OF savings bank
holdings were purchased.
The effect of this course OF events is
already felt In the increasing demand by
banks for commercial papers which reports
are coming to hand from Chicago. Besides
| this, opinions of the crop prospects are
| growing much more confident as shown by
| the hopeful views expressed by the price
| current.
Assurances of abundant harvests and
/ with price adjustment which would re-
| vlve foreign demand and correct the dis
located foreign trade position would clear
| up practically all doubtful points in the
present outlook. Stocks, therefore, make
| q ready response to all definite develop
ments promising good harvests.
| Engagements of gold today for shipment
! to Canada emphasizes the importance OF
| the harvests. The Canadian banks are ex.
panded In their loans in quite a striking
degree as the banks are on this side Of
| the border and from almost exactly thu
same conditions. The principal reserve
| banks OF Canada keep large resources II
New York and have corresponding power
| to drown New York resources to NEE
their home requirements.
i There was renewal of rumors today
4 which pointed to large extension of thu
Il nouhcement OF the st. Paul 5000 900 bono
sale was made. The suspension for a yea
4 Of q stock exchange member asa measuf,
or discipline was supposed to be response
BILE for some of the liquidation.
Bonds were steady. Total sales par value
81, 225, 900. United States bonds were un
4 changed on call.
Number OF sales and leading quotation
on bonds were as follows;