The Montgomery advertiser., 1901-06-23
Tn Hhe Financial World
WALL STREET REVIEW
THE MARKET WAS AN INCoN-
 EEQUENTTAL AFFAIR.
The Bank Statement Was Disap- pointing, as Had Been Forecast ed by the TalentJThe
 Bond Market.

| o0uu mHIkSL.
 NEW YORK, June 2-Today's stock
 market was an inconseQuential affair and even the professional trading, of which It was wholly made up, was narrow and
 restricted The trading, such as it was | turned on the bank statement. An inkling | was obtained soon after the opening
 not be forthcoming, and that traders sold | the market, but when their views were
 verified by the Bank statement, the
 msTket nail proved too narrow to reflect any | ering by professional bears rallied prices
 They went off again to the lowest in
 some cases, while few upward move
 ments gave the closing it's irregular tone khe most disappointing feature of the l hank statement was it's failure to show any of the expected payment of large | corporate loans. If any of these were paid on during the week. there was suf- | rcient new borrowing to offset this as
 the loan item shows a slight expansion,
 not threatening in itself, but disappoint-
 ing in view of the ekpecta tiens.; The | change in cash reserves shows a dis
 crepancy of fully $4,OOo,Ooo from that | foreshadowed by the known movements
 of money. The consequence is loss of | two and one-half millions instead of the
 expected gain of one and one-half mill
 quence carried below seven millions.
 This would sesm to call for greater ef- | feet upon money rates than has been |
 sums in loans in the New York market within the last day or two, thus keeping
 the tone easier. St. Paul and Union Pa
 cific sold down to the lowest in the final
 New York Central and the local trans
 actions were half sustained by buying of
 vailing. Long Island Jumped s% points | on the reported project to communicate
 by tunnel with the centre of New York.
 International silver preferred was q TnntnfG H. | ings. The stock market this week has shown a progressive decrease in specu-
 lative interest and activity, the dealings
 half million share. For the first time since the first week in November last.
 prices have been vulnerable to selling tion was attempted, and when the pro-
 fessional bears attempted an attack.
 What speculative operations there was was shifted into the less conspicuous
 stocks of minor railroads and indus trials, and the cause alleged to explain these movements are special to the had little sympathetic effect on the gen eral list Some of them were palpably
 due to manipulation and were followed by coiiapses commensurate with the sen-
 sational advances. The wide and fever ish fluctuations in this class of stocks
 rather tended to discourage operations and to arouse uneasiness. but the deep
 underlying factor in checking active op- erations was the condition of the local
 money market. When the bank state
 ment of last Saturday was followed on GOO in gold had been engaged for ship
 ment to Germany, became question of simple arithmetic to prove that any
 speculate in stocks would develop strfn- gency and probably precipitate liqaida-
 tion of stocks, thus defeating It's own purpose. As 1t was there was a harden ing of money, both on time and on call
 and some calling of loans. Rates did not
 rise so high as to create any actual dis tress, but quite high enough to serve as
 a warning against indiscreet expansion
 of credits. With the sailing of Thurs
 days steamer for Germany, it was felt
 terminated, as that was the latest date | on which shipments could arrive in Ser
 lin to be in time for the July l settle
 ments which was the purpose Of the
 movement. But the money market was | still confronted by the semi-annual re-
 quirements here, which almost invari- | last week of June. The disbursements
 of dividends and interest on the ap-
 preaching first of July will be the largest | in the history of the country as the re-
 suit of prosperous conditions ruling and | the large profits to be distributed to hold
 CTS of all sorts of securities. Current
 be distributed 12O to 125 millions of dol-
 lars Included in the amount will be a
 semi-annual dividend of 21z per cent on Missouri Pacific. in accordance with the
 decision of the directors of the company
 on Monday. This is the first dividend
 paid on this stock since 1891, when per | cent was paid. The stocks sold at 12411
 last week in anticipation of this action,
 but has since shown the effect of reaiiz- | ing to some extent On May 6, 1SS1, the
 stock sold at 10 on the New York Stock | Exchange The report of the property, s 1 earning power at present, together with | these figures constitute marvellous eX-
 hibit of the recuperation or the railroaa
 of the southwestern region m particu- | lar. A feature of the week has been the
 moderating of views rsgardingg, ag,, future ttns | It is not improbable that this is the re-
 suit of the check of the speculation
 exerted by the money market st4Na tion'
 Whatever may be the actual develop- ments looking toward railroad consoli-
 dations, 1t is evident that speculators
 have taken advantage of conditions to | to be concerned and to circulate reports
 greatly exaggerated of the plans in-
 With the supply of loanable funds re- | stricted with which the manipulators
 might operate. there has been a slgnln-
 cant falling off in the number and char | servative spirit of investigation has pre-
 vailed, which has resulted in the dis l crediting of some of the more eNtraNa- | gent rumors lately af1oat. A factor max | ing towards this more conservative view | was the adjournment of the dlrectofs or the Missouri Pacific last Abonda yl dTlt n out any acton On the HSSI$t4 Nts@psIsa a
 Pacific merger project, ;Yhictls was oeh m, | dently predicted -buA-aReeA4ator ana long made a poteIM lnstEYment for ad- | vancing prices. The versions of the So-
 called St Paul deal have been materi-
 ally modified in the goSsl lp of the street from early circumstahtiai reports or an intended exchange of the stock for joint ly guaranteed four per cent. bonds al | the rate of 100 par vahle Of stock TOT
 2O0 nar value of bonds. The first revised
 version had it that Union Paclhc was ac- | ouiring large blocks of St. Paul stock to
 effect an extension of community of in-
 terest. but that no further interchange | of securities or transfer of control oi 1 railroad property was contemplated m
 the process of extricatng the Northwest'
 ern and Pacific contest When Specula'
 tion was at low ebb it was allowed tc
 be possible that the settlement involved | simply an agreement or understanulne between the railroad owners, and thal | no changes of ownership were to be madt
 None of these versions has any offlcla sanction. but each has had it's influence | on the market movement of stocks in | volved While the immediate condition | of the speculation is thus one of repres
 sion. the undertone is confident. Th'
 promise of a heavy wheat crop, the con
 tinued large demand for cotton, th'
 maintenance activity ir the iron ant steel industry; the undiminished proht
 of our foreign trade. the unprecedented ly high level Of railroad earnings th' | prospect that large distribution or ulVl
 dends and interest will be seeKlng rem Ill yestment and more remotely, the re 5 ceipts of Klondike gold soon to he lnau
 p,Irated and the possibility of renewed production of gold in South Africa, ar all items in the sum total of the tuture 3 which underlies the speculative market
 The market for railroad bonds has bee rather quiet except for some of tn ? sneculs+iVe issues which have been Il