New-York tribune., 1901-12-15
fluanli1I
The Financial World.

thA
market. The surplus reserve of the banks Sv
yesterdays stateme-t was shown 20 be 81 5oo
600; year ago it was s6.3O0.OOO; the year h.
fore. S7.OOO00O. Therefore. in itself, it wouIs
appear that we are at this time in Tesuect -
bank reserves about where we have baa, =,
the corresponding period for two years previor.
But the difference is that we exporting gold
now that prices Of securities are very pnucb
higher and interest rates are working up As
high as II per cent was paid for call loans the
past week and low as 3; but the average
may be fairly SAL to have been about I =,
the opinion Of bankers. money will continue IN
work closer as the end of the year approaches
when the customary cleaning up Of accounts Is
done. To use the { -phic expression Of an ex-
pert in these matter. there will be no COM
fort in money until the middle of January"
Every time that call rates jumped up any day
during the week, the stock market had chill:
and it stinened again when they declined. Yes
terday, after the bank statement appeared
there was a sharp rally in prices. which was
said to be due to the large decrease. over Sill
O0OO00 in the loan item. The fact is, however
that rally had started the cay before, after a
decidedly sharp fall in the list; and the re-
eovery yesterday merely a continuation Of
the same movement
1t ought to go further. No one wants a gen.
eraI smash in the market. and all interests are
urfted to prevent one If the market is to go
down. 1t is safer to have it do so slowly, with
rallies whenever the creation Of a sufficiently
large short interest makes them possible We
ought. therefore. to see fairly strong rally to-
morrow, being a continuance Of yesterdays
movement and it should be led by some Of the
prominent railroad stocks. II is not. however
likely to go beyond a clearing out Of the short
interest.
Relative to the remark above that no one
wants smash it may be said that one was
averted last Monday by the action Of leading
capitalists who agreed over Sunday to do
tain things. The key to the market was Anal
gamated Copper. the severe fall in which had
produced a general decentralization. Unless
something was done to check IT'S decline it was
plain as day that last Monday would have seen
a bad time in Wall Street. Something was done
and when the market opened supporting orders
found 20 have been placed in this stock
and in several influential railroad stocks The
effect was to hold the market. and later in the
day Copper stock was rushed up. with the
natural effect of stimulating the balance Of the
list The sum OF the matter that from
So Copper was rushed up 10 75 which figure
was reached Tuesday morning. The stock
bought was sold after wards. and yesterday il
below 90 again But a severe smash in the
n arket has been averted-
The causes Of the decline in Copper stock are
by this time patent TO all the world They
exactly the same those which cause a rail-
road stock 20 decline. viz diminishing business
and consequent less in income. 1t was said
here last week, that the talk about Copper stock
being put down in pursuance OF a scheme Of
cunning for some one, was all moonshine.
It is But IT may be asked. why has the fall
- mi
because the capitalization of the company is 50
heavy that only with copper at the highest
prices ever known for 1T, can the company pay
the large dividend it started with
Some fine day the story may perhaps be told
of how this stock was doomed from below par
to 130z- 1t may be told how it was calmly cal
culated that New England was full of money
and eager to speculate in copper stocks How
the plans were laid TO fill the pockets Of the
New Englanders with Amalganated Copper N
exchange for the dollars which were there. How
the suggestion that this might be done came
fr5m noisy New England operator, who was
abIe TO persuade certain men of the correctness
(and they were correcO of his views-the same
men who had been glad to relieve themselves of
the stock below par This, and all the Things
which went with il. may some day De tod
But il is safe saying that when 1t IS tod, the
public will have only a tired interest IN tne
story. A year or so from now it may turn up
in the shape of a more or less imaginative
magazine sketch
This week the company declares its diVldend
No matter what is declared, the thing for tne
investor to consider is the situation OF the COP
per trade in relation TO the capitalization Oh tne
AmaIgamated Company. y price Of 10 10 L
cents per pound, means a permanently rsoUceu
dividend for the company. A price for any
nd
all probability mean 10 dividend at all Inis Is
tbs real point both for investors and spectators
TO consider. The sooner both classes get OUT
of their heads that there is anything In 1ne
making of a permanent price for Annalganatsu
Cooper other than the price at which 1t markets
the product of its mines. the sooner they WIN
get on safe ground. In the opinion OF men WIZ
have been in the mining business. nliiils
stock to entitIe it 10 sell high. ought 10 nl@A7
enough TO pay l per cent per month
After the market had been rallied Mona4s
afternoon which movement extended 10 lUeS
day forenoon, it declined feverishly ana 4Dou'
reached its lowest point on Thursday Al tAi'
time apparently some large loans were sod eu''
and for a short while there was an exelleA1eA'
on the floor of the Exchange The heaVy s0i0'
however, We're remarkably well taAsH' @--
when the liquidation was completed 0Ae ma
ket recovered itself and got in shape I0r 'n'
rally which was so conspicuous yeste'u-''
which. as before said, should go further In'
coal stocks. probably. will be found AT the lIoN"
as thz condition of the coal trade is first elass-
The publication of the annual Statements
the Vanderbilt roads, and the DIVIDENDS Aa-
no perceptible effect. New York Central Is 'H'
only stock in this group which can be sald hO
to have a free market, and the movement =
this was over before the statements appeareH
Neither did the announcement of the Pennssf