Stocks Buoyed by Hope

GOOD NEWS FROM BUFFALO SENDS PRICES UP AND
DRIVES OUT ALL FEELING OF PANIC.

     Responding to the decidedly favorable news from Buffalo, the stock market opened yesterday with an entire absence of the panicky sentiment so noticeable on Saturday, and at prices well above the closing quotations of that day. The cheerful feeling was strengthened by the firmness of American securities in the European markets, and by knowledge of the fact that the banks and the great individual financial interests stood ready to supply practically unlimited funds should stringency develop. Brokers had numerous orders to buy, and selling orders were comparatively few. Commission houses of the higher class were in receipt of orders from customers to buy standard stocks at every decline.
     Chairman Tappen and Vice-Chairman Simmons of the Clearing House Committee were at the Clearing House early in the day. Following them came George F. Baker, president of the First National Bank, and William A. Nash, president of the Corn Exchange Bank, and there were also present James Stillman, president of the National City Bank, and James T. Woodward, president of the Hanover National Bank.
     At the close of the meeting, which lasted only a few minutes, Manager Sherer of the Clearing House said: “The members only met and talked over the situation. They will now go back to their different banks, but will be within easy reach if wanted. I see that money in the market is at 6 per cent. That is not exorbitant, and any one who has anything worth holding can afford to pay that. We will have all the money needed.”
     Mr. Stillman, as he left the meeting said: “The situation is as good as it could well be. There is every reason to believe that money will be easy.”
     “We are still holding the fort,” Chairman Tappen said, “and will continue to hold it. The situation is favorable. The London market appears strong, and its tone is sympathetically reflected in the market here.”
     Henry W. Cannon, president of the Chase National Bank, and the only member of the Clearing House Committee not at the meeting yesterday morning, reached his office later in the day. He said he had just reached the city from the Adirondacks, and that he would stay here until the danger in the financial situation was passed.
     It is understood that the Clearing House Committee has $20,000,000 or more available for loaning in case money rates should advance dangerously on the Stock Exchange. None of the emergency funds were lent yesterday, however, the demand being amply met by large offerings by J. P. Morgan & Co., the National City Bank and other big banks and banking houses. A great deal of money was lent at 6 per cent before noon, and some loans were reported at 5 per cent.
     In the afternoon hours the rate eased off, going as low as 2 per cent. Most of the day’s loans were at 3½ per cent. Some of the presidents who attended yesterday morning’s Clearing House meeting were frank to say that they fixed call money interest rates at 6 per cent principally for the purpose of inducing gold imports, and the Street expects that gold engagements will be announced within a few days.
     Secretary Gage had a conference over the telephone from Buffalo with some of the more important financial interests in this city yesterday. He said he was much encouraged at the present conditions, and believed that from this time on there would be steady progress toward recovery.
     At the close of the market the following telegram was made public at the Clearing House:

Hon. Lyman J. Gage, Buffalo, N. Y.:
     The continued absorption of money by the Treasury in view of the increasing demand for currency for crop moving we trust will have your immediate attention, and measures adopted by which at least some portion of this surplus may be replaced in circulation for the benefit of the business community.

F. D. TAPPEN,          
Chairman Clearing House Committee.     

     Press advices from Buffalo announced that Secretary Gage had received the dispatch, but that he declined to say what, if anything, would be done to relieve the situation. He will be in Washington this morning, and upon his arrival there will give the Clearing House Association’s suggestion his attention.
     The first hour of business on the Exchange was highly gratifying to the conservative element. Much of the early liquidation came from the West, but it was not very large in volume, and at no time inspired any fear. All serious liquidation of stocks was met by inside support of the highest character. This was especially true of St. Paul and Union Pacific. Operations in these stocks were confined largely to the more prominent brokers—men who are known to act for the biggest interests in the financial community.
     At not time was the market unduly excited, but traders held off in the belief that the situation was such as to justify a waiting attitude. Of course there have been many speculative readjustments, and these are likely to continue until knowledge of the President’s recovery becomes a certainty. Government bonds were unchanged and railroad bonds were steady.
     Some of the early extreme advances were:

     In the early afternoon the market held steady and liquidation seemed about at an end, though the more timid speculators were giving orders to sell their holdings at fixed prices.
     The further decline in money rates brought increased strength and activity to the market in the last hour. The leading feature was St. Paul, which closed with a net gain for the day of 6¼ points, while the preferred advanced 4 points. A few other issues made even greater gains, and recoveries of 2 to 4 per cent were numerous. The applied to the industrials scarcely less than to the railway group, and the closing was strong, with many issues at the best figures of the day.