New-York tribune., 1901-01-21

a ne2lnIul reacuOn, based chiefly teChni-
cal conditions, took place in last weeks securi-
ties market Fear of unfavorable developments
in the steel trade and denials Of alleged railway
deals were doubtless effective in starting the
decline, but the main cause of course was the
somewhat Overbought condition of the market.
IT is thought in well informed circles that the
decline will go further. and that Saturdays
early rally was not significant Of active renewed
efforts for higher prices. If the reaction con-
tnues excellent chances will be afforded to pick
Up stocks of merit at attractive prices. Even at
The prevailing level values are not high although
in some cases the upward movement has antici-
pated the coming growth in real worth at too
rapid a pace. Based on conditions governing
values, and the expectations OF future in
trinsc worth, stock market quotations present
few instances Of fictitious valuation The de-
cline not heavy last week, and liquidation
made up in great part of undesirable weak
commission house accounts. The elimination of
weak holdings and the increase in the short in
terest have improved technical market condi-
tions, but further decline would be welcomed
by the more important market interests
The steel situation has been considered from
many points OF view in the last few days but all
conclusions outside of official sources Rave en-
couraged the fear of a great battle between the
Carnegie and other steel concerns. Il is proba-
favorable aspects of the situation Naturally
there will be good reason for uneasiness if the
steel giants go fighting but as yet there is
no evidence TO prove that the current difficulties
will result in a trade paralyzing contest. In
deed, il is an easy matter to see that the con-
ferences Of the last week among the steel and
iron interests had to do with a settlement Of
all troubles by methods which will conserve
rather than destroy the interests OF the trade
and of investors. 1t is probable that Mr.. Nor
gan will figure the master Of the situation
and the reported absorption of the American
Steel and Wire Company by the Federal Steel
Company undoubtedly reflects the first step in
a plan which viii remove Carnegie competition
from the field of possibilities. There may not
be a consolidation of various companies, but il
is probable that the community of ownership
scheme will embrace all opposing interests. Mr..
Carnegie unconsciousy upset Wall Street SEN
timent when he said that the steel trade was
either a king a pauper as it was at once
assumed that the king about TO die and
the 'pauper" rule in his stead. But trade re-
ports show no evidence Of coming pauperism in
the iron and steel business The foreign demand
is lighter, because OF depression and poverty
abroad, but the local inquiry IS heavy, and pro-
duction is nowhere near the demand for con-
sumption.
The call for proxies for the election Of direc-
tors of the American Steel and Wire Company
has aroused Mr.. Gates and his friends TO the ne
cessity Of action if they would preserve their
heads as factors in Steel and Wire management
While Mr.. Gates attacks stocks, especially the
steel stocks with one hand, he holds out the
other for proxies, and it is said that some unsus-
pecting holders have responded TO his appeal.
On the other hand, however, excellent informa-
tion indicates that Mr.. Gates will not dominate
the affairs Of the American Steel and Wire Com
pany for many weeks longer
The money and general trade situation offer no
reason for pessimism in the stock market
Money is growing easier, and trade conditions
are satisfactory. 1t is understood that there
are more railway deals of Importance pending
ard that their announcement has been POSTPONED
and not abandoned. II may be well TO watch
-. Paul and the Northwestern roads, despite
recent denials that anything OF Importance is
about to develop. And in the Southwest the
railroad situation may become interesting A
large accumulation of the various stocks by
prominent interests has been effected and the
time may not be far distant when important an
nouncements will be made. In the week lust
closed some gold went to Paris, and II is prob
able that more will follow this week Money
however, continued TO come to this centre in
large amounts, and bank reserves above legal
requirements rose nearly $5,OOO,OO0 to over ST.
100000. Cash increased over Sl3,S00O0O while
leans increased nearly $23,OOO.OOO and deposits
$36.000,00O.