The Montgomery advertiser., 1901-06-09
WALL STREET REVIEW
BREAKS IN PRICES FOLLOW
 BANK STATEMENT.
Spilling Out of Stocks Causes Loss of the Greater Part of the Gains. Heavy Inroads Upon
 Reserves.

ton TOT any important variation In prices,
 ment upon the tape. There was a lively spilling out of stock after that and
 sharp breaks in prices. which wiped out strong stocks and carried the general
 level of prices substantially below last
 nights closing level. The heavy inroads
 upon reserves revealed by the statement.
 was surprise, although adequate expla-
 nation may be found for it. It will be
 remembered that last weeks statement, showed an unexpected increase in cash.
 o,d It appears psirdn.s that a., part Of last weeks weeks statement. and was carried over into this week. The enormous loan ex- pansion was affected by some large cor porate transactions. It was announced this morning that the $3o.OO0.000 capital of the new Consolidated Tobacco Com pany was paid in yesterday in cash. On Monday the fourth and last installment of 900 on subscriptions to forty mill lions of Union Pacific convertible bonds is payable and preparations have doubt less been made to meet it. The Steel Company consultations in Philadelphia may also have affected the loan item here. The loan expansion of S21 PAS. 400 Is the third largest for a week in the his- tory of the clearing house. being twice exceeded only by an increase of 80. .490.- 300 for the week ending February of this year and of s22. is1 900 for the week ending January le of this year. The early strength of the Cloud southwest
 
 bacco stocks, Amaigamated Copper and number of minor railroad stocks had served to lift the markets from it's early depression but the selling brought out by the bank statement sent prices lower than before. There was early heaviness in the United States steel stocks before the general market turned downward. St Pauls decline fin the best was 3A. Rock Island 3: Missouri Pacific and Union Pacific. 2A each and Amalgamsted Cop per 3h. The closing was unsettled and irregular after some fitful rallies and re- newed declines.
 Speculation in stocks was more active this week and the average of daily trans actions were well over a million shares. The business done by commission houses afforded some indication of renewed in- terest in stocks on the part of the out side public for the first time since the overturn on May g. but the principal professional operations and the larger financial interests. It has been current before that some of the larger operations have been connected with the progress of establishing further community of in terests among railroad powers of the country The professional operators in stocks have used every effort to foster this belief to help the advance in prices; The heavy realizing at their level or prices disclosed the fact that some of the previous large buying was purely specuia- tive and this threw doubt on some or the reports circulated of plans for further railroad combinations Emphatic official deniaIs of many of these reports added to the doubts regarding them. It IS also known that short lines were driven to cover by the advance and the manipula- : tion for the advance was in part directed toward forcing this covering. Short sell
 ing was done last week in the incipency
 of the advance and was based on the assumption that in the professional state of the market reaction was nor mally due Part of it was also an inci- dent of thet bull movement in wheat based on the reports of drouth in the west. It was clear that holders of long stocks were taking advantage or tne necessities of the shorts to market their holdings at profit, taking in stocks ana induced liquidation in wheat. Wall Street gossip had it that some large speculative lines of stock that had. been carried through the panic, both here and abroad. had been marketed at profit after nav ing shown large losses at one time A continuing influence early in the week was the official announcement made last week that Northern Pacific quarrel had been settled. Nothing was given to the public regarding the terms Of the settle- ment and rumor had a wide scope in consequence. In it's various phases this has 1t that bonds to be exchanged for Northern Pacific stock would be jointly guaranteed by Great Northern, Union Pacific. St. Paul and Northwestern. The strength of Rock Island was supposed to be due to it's inclusion in the benefit of the project but was later explained by the issue of extra stock at par to stock holders and the admission to the direc- torate of steel men who had thus rein vested their profits from the steel merger. Union Pacific, it was said, would lease the Atchison and guarantee dividends. Later the election as a director of Atchi- son, of a member of the firm of J. F. Morgan X O., was taken as foreshadow- ing a policy of exchange of representa- ton in the companies controlled by the groups of capitalists brought into con n NnFfhaFn contest
 Last weeks version of the Greater Mis- souri Pacific evolution, which pointed to the requirement of an eastern trunk line outlet for the system changed in the situation and that the Wabash and Wheeling and Lake Erie would be re- linquished to the Pennsylvania owing to that con1pany's objection to the trunk line outlet and that Southern Pacific would be relinquished to Missouri Pacific as compensation, Union Pacific retaining Central Pacific as sufficient to complete its line to the Pacific coast. Other gos- sips said that the strength of Ontario and Western foreshadowed the choice of that road as an adjunct to the Wabash and Southwestern systems.
 Authorized disclaimers met many Of these rumors. Of general conditions which have played part in the week s speculation. most important was the un- disturbed course of business. The firm ness of prices and the continued high level of railroad earnings have shown no effect from that stock market panic, al though time has been given for such effect to become evident This Is ac- cepted as Feassuring to the soundness of general conditions. and as demonstrating that the speculative furore had not re- suited in flatteninG out the stock mar ket Every evidence that speculative buying of commodities had outrun con requirements as Is likely to be the case in a period of growing wealth and rsiHg prices, would threaten result in hIIsjnaSS anaIOQOIIg those in the stock market in May. With no evidence tu show such state of affairs in general business and with speculative losses in stocks in process of adjustment. there is q natural tendency towards renewed ad- vance in prices of securities. The sober second thought recognized the value of of general health by check to the excess of speculation in stocks. even at the cost of artificial profits based on the unjustited speculative demand Inn the iron trade alone there Is hardly a note of preparation for diminished de- mand based on the falling off in new or ders and less urgent requirement. for de lNerleS on old contracts. Foreign trade sta atistiCs show that the falling off in eX- ports of manufactures is largely account ed for bN iron products. It does not es- cape notice that the continued plaint from foreign markets is of trade depres- sion approaching critical conditions in the German iron trade. The apathetic money markets of Europe point to a period of and contraction. such as preCedes cheapened produc- tion. With foreign markets almost stripped of American securities and the European requirements for our food stuffS undiminshed. the problem of the of the trade balance in our favor takes on new phases. The current of the gold movement continues away from the United States owing to the ab- sence Of our own production of that al In nf Af Mai