The Montgomery advertiser., 1901-05-19
WALL STREET REVIEW
THE PROMISE OF RENEWED
 STRENGTH NOT REALIZED.
The Late Reactionary Tendency Was Due to the Unfavorable Bank , Statement-Manipulation.,
 at tlle Close.

dDTUpC EIUTKTT1R up lew stocks to top prices, apparently by ma
 nipulation. which lesseped the appear 'ance Of weakness. The disappointing fea-, ture of the bank statement was the de- crease in the cash reserves. The .prelimi- nary estimates of the interior currency
 movement indicated that receipts had
 been so heavy as to offset the outgo by export and thereby brings treasury re- quirements and bring the net gain in cash
 by the banks to S6000.000 or upwards.
 The statement shows a decline on the surprising, but the fact is obvious that the relaxation in the money rate has les sened the attraction here which was drawing ; yin money from the interior dur this week. just as it has allowed gold to go to Europe. The heavy stock market liquidation is shown in the s24,2of.soO of repayments of bank loans. It Is clear that the money market is again a factor to be considered in the stock market with receipts of currency from the ip- Europe. The effect e of realizing % W was quickly manifest this morning in stocks which had been strongest yesterday. nach1so5 ths forgsd uo, up to the leadership of S?s. There was no news to explain the rise Other strong features were the To- cal gas strocks, Baltimore & Ohio. Lacka- wanna, Rock Island, Illinois Central, the Chicago and Alton stocks, Pittsburg, Cin- cinnati, Chicago and St. Louis, Northern Pacific. Great Northern preferred, the GxItcS, tuc ftdllWdy SIOCkS, Wheeling and Lake Erie first preferred; 1; International Power; the National Lead stocks; Manhattan and a number ofminor indnstrials and specialties. Last prices were decidedly below the best in most cases. The decrease in loans was the largest for one week in the history of the clearing house. e
 The stock market has shown the ine- vitable sitter effects of last weeks cons vulsion during the whole oft his week in spite of opinions voiced by the less ration
 panic was only a sort of, emotional insan- fty without real cause in actual condi- tiohs. and that therefore the stock mar Ret was likely to come back promptly to
 rebounds which occurred from thel over level prices have been cited to strength
 en these views. But violent fluctuations
 nomenal always witnessed in the market
 immediately following a sudden commo-
 ton. The movement of prices is exactly
 @hers sudden huge pGG pSis
 placing body forces a recession. followed
 bySan almost equally violent rise and then
 ensues oscillations Those who can pos,
 stocks will make almost any sacrifice 10 prevent selling of property on which they
 have any claaim in such market as that of Thursday of last week. Those who are forced to sell are throwing over hold ings and making prices at which many
 buyers would be glad to take if they were
 
 ply and demand is, for the time, out of joint. and men may be selling stocks in one part of an excited crowd many points
 below what is being paid for it a few feet more remote who are unable to get buy ing orders executed. in spite of their ut
 most eagnerness. That this was largely
 true last week is shown by the number of acrimonious disputes which have oc- cured this week concerning sold out accounts and needless sacrifices made in 4.as 0v,Sn fO1A hw -.lA which follows the first check to the panic selling Is thus understood. but when the recovery has been made, there Is always
 must be liquidatea. Many stock exchange
 houses have admitted that, the, low level of prices last week had not only wiped
 out their .5a SsSs elas uPon them for themselves had they liqvidated. They simply refused to sell and awaited the quick rebound. Then they took advan-
 be1ated liquidation of this character which caused the violent relapses of Tuesday and Wednesday of this week, which reached fairly sensational propor-
 tons. With the completion of the most
 urgent of this belated but forced liquida- ton there followed recovery again. The fortnightly settlement on the London
 stock exchange on Monday was a compli- eating factor, as that market was heav- ily committee in Americana -aes g
 short of Northern Pacific. as this mar | ket had been, but the time offered for preparation enabled London to meet the crisis and avert the panic which was feared. With the progress made towards
 normal conditions in the stock market: | actual conditions of general business and | of individual properties have re-asserted their influence to some extent. The con viction is general that the embittered con troversy over the control of Northern Pa- cific has been adjusted No authentic information had of the terms of settle ment, but there is evidence that the con- | faSfantQ fnr fha nf NnrfhAru l.. cif1c have been insured against harm from the operation of the Burlington deal, and that project has approached toward consummation. There is an element in
 the speculation which argues that as this | controversy was the root of the troubles
 which precipitated the panic. its adjust direct return to the boom prices for | stocks. The difficulties encountered by | Humpty Dumpty in getting himself to- | gether again formed an illustrative prece- | the market to the stock of the Northern
 Pacific episode revealed the fictitious
 character of much of the buying. which produced the book price. Buyers on mar gain had stretched their credit to secure
 title to the. stocks which they had no
 means to buy outright and for which | there was no demand from those who
 could. The heavy losses suffered by these | spectators is a deterrent to a resump- | ton of buying, even by those who have | means remaining. Other deterrents are l the largely increased margins demanded by commission brokers for the purchase l of stocks and the additional caution shown by the banks in making loans. | The stock market liquidation has resulted | in large recuperation for the banks and has eased the money market so far as
 to remove any obstacle to the resumption
 of gold exports. The requirements of for eign markets for the gold are for the most part the result of the placing of government loans. Paris credits are placed in the London market on very | large scale and are being withdrawn to prepare for the new Russian loan of About $S0, ,066. 900, which has been placed | in Paris. But London, with an install ment of the new consol issue to meet this
 week. can i'll afford to spare gold and
 ships ships gold to Paris. New York's sub, ] scription to the new British consols anC | its heavy buying of American securities from foreigners large shipments of which
 are received on every incoming steamer are to be considered in explanation oi
 the shipments of gold from the country
 in spite of the continued growth of the | country's favorable balance of trade. The 1 April foreign trade statement shows ar | excess of merchandise exported over i'm. ports for ten months of $5S4 PIP .303 The ! diminished demand for money for specu' | lative purposes in New York. besides al | lowing foreign markets to relieve theil l wants, lesSens the importance of the heavy drain on the money market of the Treasury, The governments surplus foI the mouth thus far exceeds A.0O0. 900 l while for the corresponding period last l year there was actual excess of expendi- lures of over half million. The offer lings of government bonds for redemption are insignificant. Prices of bonds have not made the feverish fluctuations showr
 by stocks, and the volume of business hai decreased.
 | limited States new fours advanced +