Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-12-10

NEW YORK, December S.-There was
very little trading in stocks to-day and
the character of the market remained
about the same as for several days
past. Tennessee Coal and some of the
other industrials which have been
acutely depressed during the week,
continued feverish and unsettled.
Tennessee Coal fell ana extreme 33s
and recovered two points in sympathy
with the late general strength Of the
steel group. Federal Steel led the raj
ly and was helped by talk of dividend
distribution and of the adjustment by
agreement of the disputed points be-
tween the great steel combinations. The
movement of prices in the general list
was sluggish throughout. The weak
bank statement had been so accurate
ly forecasted that it had little influ-
ence on the trading. If anything,
prices were a little better after the
statement on taking OF bear profits and
in sympathy with the sharp rally in
the steel stocks, but there Is no change
in the opinion that the cutting in two
of the small surplus reserves at this
period is a serious phase of the outlook
from speculative standpoint. ihe
continued interior demand for money
is regarded as a striking evidence of
business activity and prosperity. How
ever it will interfere just as effectual-
ly with the purpose or persons who are
holding stocks on margin with borrow
ed money. The reported purpose OF
Inc treasury department TO anticipate
the payment OF over $1,000, 900 of Janu-
airy government interest did not re-
lieve sentiment to any extent, as ex-
perience shows that this manner of re-
lief is cumbersome and slow in max
ing funds available to the open money
market Even in the stringent money
market of last fall holders of gov
eminent bonds were slow to collect the
interest offered by the government in
advance OF coming due. The coming
yearly settlement for which the pre-
paration has already commenced in
vOlve the disbursement of larger sum
Of money than ever before in the his
tory Of the country.
The irregularity of the stock market
during the past week is significant OF
the unsetuement of speculative senti-
ment and fthe present safety Of the
voracious speculative demand, which
took in all classes of securities with
out discrimination for a time after
election. The decreased volume of
dealings is reflection of this condi-
tion OF affairs. The sharp reaction in
prices here and there represents the IN
loading Of speculative pools anxious to
take profits and alert to the declining
interest in speculation. This unload
ing process has served to reveal the
collapse of the early buoyant buying
spirit. The sugar episode was. in some
part and aggravating cause of this
tendency of stocks and in some sort
merely an illustration of it.
The abortive speculation in sugar had
its own motive in the unwarranted ex-
pectation of a dividend increase, but
analogy. The industrials as a group
are showing the effects OF the pending
problem of the efficacy of the new form
of industrial combination as a fnan-
cial device. The "greener." newer, in
dustrials are more sensitive than those
with an older history, but the same
causes affect both. The steel group Of
fers the best example OF the questions
is whether the capitalization is so high
Lnat only such prices for the product
as invite new competition will bring In
the required profits tc maintain divi-
dends. The actual disbursements of
dividends on these stocks and the
course of events in the trade during the
past year here obviously failed to en-
tirely solve doubts on this subject in
the minds Of the speculative and in
Vestment public, as is shown by the
prices of the securities. The outcome
of events in the trade during the com
ing year are awaited to form a basis
for more definite conclusions. The
profits of manufacture at last years
level of prices, it is proved, were so
great as to invite the bringing into ac-
tivity of a large aggregate of produc-
tive forces which resulted in an over
production and necessitated heavy con-
cessionS to work off the surplus The
lower price level has driven smaller
productive forces into retirement again.
The future values OF the securities of
the great combinations depend on
whether thoy can keep prices at low
enough level to deter the smaller en-
terpriseS from competitive production
and still earn dividends on their large
capital. At the present stage the do
meStic demand for the product seems
to have become sufficient to lessen the
effectiveness of foreign rates for our
products. The recovery in the securi-
ties Of iron industrials in Germany is
the reflection of the decline of American
competition and promises to show eff
fects in our export trade statistics be-
fore long. The current shipments
abroad of iron products are still heavy,
but as the Iron Age significantly OBJ
serves: That is water that has already
passed the mill" In the sugar trade
also speculation shows itself sensitive
to indications of renewal of the
trade war" or the final adjustment on
the basis of tolerated competition. The
problem struggling for solution in this
case is to fix limit to the possibilities
OF absorption by purchase of new COM
petitors, with the consequent burden Of
increased capital entailed. But these
are not new problems for fnanciers or
for spectators, and their importance
at this time is due particularly to the
generally reactionary tendency which
is prone to develop in the stock market.