The Montgomery advertiser., 1901-12-15
WALL STREET REVIEW
RANK STATEMENT WAS FAVOR
 ABLY REGARDED.
Prices Advanced Upon Its Appear ance, But Heavy Selling Was
 Encountered and Values
 Diminished to Some Extent

<. New York, Dec. .14-operators in the stock market placed favorable intepre- tation on todays bank statement ana bought stocks briskly after it's appear ance. As prices rose over last night level heavy selling to realize was en- countered. which carried prices back from the best. The offerings. diminished at the decline and the close was nrm at q level slightly above that oI ias. n,sn.. @ ket was dull and hesitating and govern ed largely by the cratic fluctuations in Arnalgamated Copper. That stock opened G I i.s to ss, compared with 6 1-s at last s night 'elose. 1t declined to 64 1.A break ing the low record and checked the ad- vancing tendency in other stocks. The last prices was 66 1-2, a net loss of point for the day. The stock went s-S lower than last Saturday. compared with a high price early In the week. more level. The sentiment regarding the stock was much confused and brokers usually credited with acting fer insiders cotn bought and sold the stock The decline In cash reserves of the banks was about a million less. than was expected. The liquidation in the speculative markets was reflected in the loan contraction Of sii.i7s loo. which reduced the encroaeh- ments on the surplus to $l,152.6SO. The transfer of funds to New Orleans through the sub-treasury was continued today
 
 money was easier in London and the price of American eagles declined three.
 The year-end constriction of the money supply has been the dominating influence in the stock market during the whole of the week and was very clearly fore shadowed in last Saturdays bank state ment With surplus reserves of the banks requirements for credits incident to the season definitely known the problem was one of very simple arithmetic. Loans n, oGfIN mn collateral and especially such as are used for the speculative holding of stocks on margin are always and inevitably the meuts are to be met for other purposes. The action of the market has also sug- ge3ted rather clearly. that soms, of the selid financial powers have acqaiesceg m "a downward course of prices for the time ms offering more substantial vantage ground from which to face the exigencies' of the annual settlements. In addition. there have been demands to. meet which were, not counted upon. Such has been. the foreign demand for gold. in spite of the decline in foreign exchange rates to below the point at. which gold exports ation. The gold which has gone out is believed to have been purchased at what was in effect premium by foreign bank ing institutions which are desirous to make favorable showing of bullion re- serves for their annual reports. The ac- tive speculation in grains and cotton has
 
 York for cash which was not counted is season of the year The smaller expenditures of the government as compared with last year has expanded the-eurrent surplus are made large de- mands upon the New Iork money mar ket through the sub-treasury operations. The decision of the sub-treasurs to pay the January interest in advance is ide- signed as a relief from this drain, but the payments will not be available until next week The supply of government a radomnfiOY1 hA treasury's offer is constantly diminish ing and does not afford adequate relief from the drain of the collection of sur plus. This is not only present factor, But also causes a sense of uneasi- ness as to the future effects. There was also evidence during the week of was attributed to the needs of mer- cantile house.. Rumors- of difficulties growing out of this were used with ef- issue of New York City bonds was ' ef- zeeted and the reported purchase of the Pocahontas Coal Company by the Nor folk and Western was supposed: to in- volve some syndicate borrowings. The money market has in consequence been active and stringent during the week and there was good deal of liquida- ton but liquidation of speculative ac- counts forced by calling of loans. There has been some effort to draw q parallel with the situation. of December. 1899, which culminated in money panic on December IS. when the rate for money ran m to one-half of l per cent. with Q commission, the equivalent of 1s6 per cent a year. with violent liquidation ir ahe stock market This parallel. how. ever. does not take account of the sen. sitfve condition of sentiment in 1899 con sequent upon the preceding imitation O. idle industrial securities and their dis favor with money slenders. owing to tn, lack of information of the real financia status of the companies. Upon this sen Sitive condition was suddenly precipi tated the first heavy reverses of tn British arms fin the Boer war. The cer dainty thus indicated of huge. borrow tngs by the British Government and tn prolonged cessation of EHrope's go supply from the principal source in tn TTansvaal caused scramble for gol and heavy withdrawals from New Yorl in the very crisis of the markets difh entities. Last year all money touched
 per cent, or higher during each week c December without interupting the buoy ant rise in the stock market, which hat set in in the fall. with the hardening tendency of the money market in tha month was promptly reflected in tn foreign exchange market, promising re lief by gold imports in case of neces eity. Evidently the condition of our for eign Indebtedness at this time preclude the chance of any such relief. The -op eration of the refunding law then wa yielding large sums to the money mar ket in the payment for the premiums o the refunded gov nent bonds Tn movement of currency to the interio m the early part of December, 1900, gay place to large receipts in the latter par of the month, in response to the increase demand in New York. The stock marke was stimulated and excited by the Penn sylvania Coal Company purchase an the adjustment of the anthracite indus try, with the accompanying rumors c other great deals and combination which were to follow. It is sufficient clear therefore, that there is no clos parallel with the condition in Decembt of year ago or of two years agO. Anna gamated Copper. though very errat during the week and very heavily dea i'm has been less of q disturbing elemer than last week. its occasional rallies eS trcising d sustaining influence on stock at times While the outlook is for we sustained money rates until the end ( fine wear and a representation of spet ulative buying the prosperous condition of general trade in all lines keeps u uudertone of speculation confident Raj road bonds have been quite active an irregular The old 4s and new As and advanced Is per cent. over the closin call of last week.