The sun., 1913-10-19
FINANCIAL NEWS
AND COMMENT
stocks Make sharp Rallies Cen
orally and Hold Gains
at Close.
BANK STATEMENT GOOD
Optimistic Influences Derived
From Status Of Cur
rcmcy Bill.
BANK STATEMENT GOOD

Indications since the middle OF the
week that stocks might he in position
to rally with some vigor were enpha-
sized yesterday by a sharp general ad-
vance The American can stocks were
conspicuous exceptions, hut the move
ment OF these shares has frequently been
unaccountabie. 1t nigh, he pointed out.
however. that they did not decline until
the past week when the rest Of the list
seemed to have established levels Of re-
slstance after a severe contraction In
quoted values. The Rock Island secur!-
ties were heavy but assurances, appar-
entity Of official inspiration, were in cir
culation that there was no immediate
difficulty IN Rock Island affairs. Trad
ing was on fairly active scale FOR a
Saturday and closing prices were very
little OFF from the best figures of the ses-
sion. Amalgamated Copper continued,
as II had been for several days. the leader
in recovering tendencies. hut was firmly
supported by United States Steel. Union
Pacific and Reading. Gains OF point or
more were well distributed among the
standard stocks.
Abroad there was much the same kind
of q stock market movement as here. Lon
don reported covering of bcarish positions.
Tho Wall Street inclination to even up
tHleHlS tt tIlc Wtth ho'"' hi'N
took the form of purchases on balance
after several daily sessions of contracts
entered into on the selling side chiefly.
This disposition coincided with signs that
tho market had probably become at least
Speculatively oversold and with the spread
OF feeling that a substantial rally was
overdue. The four recognized leading is
sues. Union Pacific, Reading. Amalga-
mated Copper and United States Steel
had fallen from - to Is points in a
month without noteworthy recovery at
any stage and professional traders were
prepared to operate on the constructive
side on the appearance of rising strength
To the extent that anything more than
q technical argument for strength was
needed IL seemed to have been provided
by two Of the political considerations sup
piled during the week. One was the un-
confirmed but hopeful rumor which seemed
TO come from Washington that the Adj
ministration had recognized the disturbed
state OF confidence ana WAS not contem-
plating a programme OF legislative activ-
itie~ directed against business at the rrgu-
lar session of Congress. While this rumor
WAS in contradiction Of recent develop
'ments at Washington It reached wall
Street when the mood of the financial
community WAS reacting from exaggerated
depression OF sentiment
Optimistic reaction WAS eucourag ged also
10y the signs that Senatorial opposition
to hastN enactment Of the currency hill
WAS appai entity resulting in an appr,Ni-
nation Of political and financial views
calculated to work out i'm substantial
amendment OF the hill for the better II
was not manifested to-day nor during the
week that the stock market had much
buying suppo: o: other than professional
origin, allowance being made for the pur-
chascs which banking interests alway :
Itiss 1,..,, .i,., .,I,I
unsettlement Vet it MAS obvious that the
contraction Of prices had gone far enough
IN many directions - Offer some attrac-
ton 10 purchases for what is called the
.ong pull"
The hank statement was very much the
same kind as that uf a week age. IL eX-
hihitod Il large shiinktgc in loans with
correspondingly heavy decreases IN de-
ioSits. the Curta.lment Of loans being
about S2i,50n,"o" and deposits falling
SlS4"o,o0" As result. although there
was almost no change in cash holdings
reserves wer. increased by Si.7ou. .uou
through the reduction Of reserve require
ments. TIL" surplus reserve was raised
To about ST.. 600. or more than s30oo.-
oo0 above the corresponding surplus a
year ago Undoubtedly the bank state
inents Of the last two weeks have shown
large shifting of loans, bu, the bank
position has gratifying aspects in that
'ntlc ~ tiuS dtllbtu IL Ethbl ltbl OF ca
pacity for accommodating pressure. More
over. the shifting of credits has been ac-
complained without any spectacular ad-
rances In interest rates. although the cir
cumstances OF the money market have
been straitened enough to warrant calling
1t tight.
Foreign exchange was quite weak hut it
has become customary on Friday and Sat =
urday lately for exchange to fall only to
rally sharply on Monday and Tuesday.
There was nothing in the news from
abroad to change the impression made by
tho weeks foreign advices that Europe
expects higher discount rates and has
been rather dismayed at the exhaustion
of tho investment market denoted by the
recent failure Of public subscription for
more than TO IL per cent. of new Sc
curity Offering. The situation has become
such at London that issuing houses have
once more agreed to suspend security
promotions
political matters were upperNOet in
Wall street attention throughout the
week, the most Interesting feature being
tho impression derived that prospects for
amending the currency bill so as to make
Al reasonably safe and workable were
growing brighter. The weekly reviews
OF the commercial agencies yesterday re-
ported irregularity in trade as a whole
without evidence as yet that the new
tdrHi CHECK 10 ACTIVITY nau been over
come. Business nevertheless Is moving in
good volume still and no success so far
has rewarded the efforts of foreign mer-
chants and manufacturers TO make sales
here as a result of tariff revision. The
statement OF the colntrys domestic ex-
ports for September revealed an increase
OF $ls.7O0O0O compared with September
last year. the whole gain owing to the
movement and price of cotton There
was display Of violent strength in the
cotton market during the week. but grains