The Montgomery advertiser., 1901-07-14
WALL STREET REVIEW
THE MARKET WAS FEvERIsH
 AND ERRATIC. q,
Due to Hesitation Engendered in the Minds of the Bears by the Violent Break in Corn
 Prices.

| | tnroughout today's short session, due to the hesitation engendered in the minds of I the bears by the violept break in the corn the condition of the banks disclosed by the weekly statement, There were two sharP rallies on account of these factors. | Neither rally was held with any firmness I and the market closed with renewed de- ciines at many points on realizing and snarp advances in individual stocks. | There was evidence of continued pressure to liquidate in the opening dealings, most marked in the United States Steel stocks The preferred was carried down 2Ss be- fore vigoruos support rallied 1t. The | common lost h and rallied most easily | The preferred rose IF, with the general | rally in the market, but continued under pressure. The recent market leaders, St. | Paul, Atchison and Union Pacific lost to points but came up vigorously when the break in corn on the Chicago market was reported. The recovery in corn sent prices of stocks down again, as it was | feared the movement was more due to precautionary realizing by longs in corn on the possibility of Sunday rains than to | In the corn belt. The banks showed d larger gain in cash than expected, the re- serve rising $,l75 100. The importance of | the weeks liquidation in the stock mar ket is measured by the enormous loan contraction of $21, ,O61. 800. This is in the largest decrease in loans for single with the exception of the week ending May B of this year. which was the week | following the May panic when the loans | were reduced, SPA, ,024 800. The decrease in reserve liabilities affected by the loan l contraction, aided materially in the S7,59f.- $50 recuperation in the surplus of the l banks.
 l Drastic liquidation of speculative ac- counts have swept the market this week. and considerable long selling has been
 added under the threat Of damage ,o value of securities by departments indi- | eating future impairment of earning pow | er.. The speculative buying, which was conducted pretty steadily during June has been thoroughly shaken out. and the | level of prices carried below where 1t | started. The process was begun last
 week, and cut short by the adjournment l Of the Stock Exchange from Wednesday | until Monday of this week. The develop
 ments during the interim aggravated the
 pressure to sell this week. A survey of the motives of the June speculation will help the understanding of the acuteness
 of the depression this week. For one
 thing, the stiffness of the money market
 the supposition that, with the July re- Quirements met and the accumulations
 re-disbursed, there would be abundance eontrapy bankers Saye SaS sheWn marked ked indisposition to extend credits for specu-
 iative purposes. They have exercised
 more stringest discrimination as to col closures in connection with the Seventn | National Bank failure, and they have called many loans to repair inroads upon
 French exports of gold to Germany made additional drains. The movements of the interior money market had indi-
 cated an unusually early demand upon New York for funds to move the crops and bankers have felt impelled to prepare
 themselves for this. The sums disbursed
 for dividends and interest on July 1, which were unprecedently large, made no impression upon the stock market in
 the way for demand for reinvestment
 and business which had accumulated
 stocks with the purpose of meeting this
 demand were disappointed.
 There Is reason to believe that there Was
 by powerful capitalists with the purpose byp owerful capitalists with the purpose of repairing damages to values wrought
 by the May panic, could afford better
 basis for credits in the furtherance of ad-
 ditional financial projects, the support oi
 those already entered upon. Wall Street is inclined to recognize division into power of the country, the distinction be | tween which was emphasized by the struggle for control of Northern Pacific
 The operations of these two groups arc easily distinguished as independent, but
 as result of the promised settlement
 of the Northern Pacific contest, they were
 supposed to be not antagonistic, and tC , be as one to support the stock market at the high range of prices. The fear go : abroad this week that the policy of tho two groups in this respect was divergins bers of the one group were selling stock while for the other there was buying | DdukS with the CaplIdllSCS or tnt ] one group were asking higher rates fol : money and calling loans, while bank. { controlled by the other were placing mil lions in call loans to break the none. 5 rate. Sensational reports were published
 of a stormy interview between the two
 principal representatives of the groups
 which threatened to reopen the whole
 Northern Pacific quarrel. In the absence
 of a formal authorized announcement , on the subject, the inspired publications designated to create assurance that al
 fn fot lad n
 their purpose. The announcement by th'
 Atchison, Topeka and Sante Fe Railroad of an open cut in freight rates between Chicago and Missouri river points to @ . into effect July 10, was a proclamation, O ] the futility of the community of interes plan to prevent rate contests in the verI : territory where that policy had had iti
 most striking example. A large part O > the speculative buying during July. i ] will be remembered was based upon al assumption that larger and more com prehensive project of community of in terest had been the outgrowth of th'
 Northern Pacific settlement This week.
 markets prove that larger speculative
 holdings still remained, which were
 bought on belief in that project and whicl
 were uploaded indfscriminateiy in tn,
 fright caused by the doubt cast upon it | It will be seen, therefore, that the stool
 market was in week position techni
 cally. Otherwise, it is not supposed tha
 it would have proved so vulnerab ble to tn,
 effect of the immediate developments O
 an unfavorable character of the week The damage to the corn crop, which Ii admitted to be severe, is of most imme diate concern to the grangers, Pacific anC southwesterns, and these particular stocks have been inflated by the over exploitation of the community of interes kproject, and the so-called greater MiR . souri Pacific rumors. Their losses wer
 therefore very severe and out of all pro portion to the actual damage to the corr crop as measured by the prive movemen in the corn market. The weakness in tn
 rest of the list was more or less ,sympa thetic even the wheat grangers losinl
 ground, just as wheat advanced in sym | pathy with corn in spite of the excellen 1 promise of the wheat crop. A contribut
 ing cause to the weakness of stocks wa
 the threatened strike of steel workers
 There is an underlying feeling that tn
 dispute will be settled without a pro
 longed strike, but the possibility of wide
 reaching harm to industry and business
 from a conflict between the interests in
 volved cannot be eliminated from th' . situation. Except for this and the crol
 news, the severe losses for the week il
 stocks have nothing in the way of i'm 9 pairment of earning power to accoun ! for them.
 n The railroad bonds have been affected |, in sympathy with stocks, in much less de l gree.
 n United States new fours declined F ant o the refunding twos old fours and tho
 ives advanced A per centum over the
 closing call of last week.
 New York Stock List.