The Montgomery advertiser., 1902-07-27
WALL STREET REVIEW
VARIOUS POINTS OF STRENGTH
IN THE MARKET.
Selling Produced by the Appearance
of the Bank Statement Not Well
Enough Absorbed to Pre- 3
vent Declining Tendency.


week just closing The demand. howev-
err, was languid and the selling induced
by the statement of condition of the
banks was not well enough absorbed to
prevent q declining tendency. AS a result
the closing was easy and represented net
losses In the majority of caes, Rock
Island was affected anew by the plan
ior the conversion of its securities and
sne notable strength of the St. Louis and
San Francisco stocks, Kansas City, Fort
SCOTT ana Memphis and Chicago and
eastern Illinois were due to hopes that
those properties would be included in the
new project. The definite formation of
this plan gave fresh credence TO rumors
on many other financial projects, which
nave FALLEN out of public attention for
some time after active discussion. but
the lack or active interest in the market
incident to the short session and the abb
sence in the country of many active op-
orators left these facts ineffective to hold
up prices. The disclosure that the needs
OF the active speculation are absorbin-.
the increase In available resources and
the prospect that further gold will go out
next week, while the Government reve-
nnes have begun to take up a daily sur
course OF the money market with con-
tnuance of the speculation. The stock
market has shown degree of animation
this week which Is extraordinary meas
ured by the standards existing before the
speculative era of last year. The aver
age of the daily dealings has run near to
q million shares of stocks. The market
mas presented the unusual irrigularity
caused by the shifting speculation Of q
bull movement, due to occasional profit
taking. where there have been extended
advances. side by side with animated
buying in new quarters of the market
On Thursday the selling tendency became
rather more general. but there were per-
sisting points of marked strength even
then. The prevailing opinion In Wall
Street is that the bulk of operations is
still due to pools of millionaire specula-
tors, intent upon a turn in prices and a
quick sale to realize profits. But it is
obvious that there have been large ac-
cessions to the ranks of this class of
operators over the number that were re-
sponsible for the earlier stage of the
movement, and indications have not been
wanting that the great financial powers
OF the country have had a hand In the
dealings and growing outside following
from the country at large has been at
tracted to the market. The bull move
ment as its basis the general agreement
or all signs In showing prosperous condi-
tons in the country and in promising
continuance of these conditions is as
long as the range Of vision can perceive
the future.
Growing confidence is felt that the
years crops will be abundant. No signs
are seen of an interruption to the active
demand in the iron trade. Railroad earn
ings will show increases over last years
profitable level The present losing con-
dition OF the anthracite trade, due to the
strike. is a drawback, but In the present
sangufne mood of the speculative tenn
per-. 1t Is felt that these losses can be
made UP in the improved conditions It is
hoped to establish when the controversy
Is finally settled. The week has brought
In addition a cloud of suggestions and
rumors running all the way from street
tips to well-formulated reports with
color Of authority of new arrangements
and combinations among the railroad
powers and of reorganizations and con-
solidations- These have been effective in
lifting prices still higher than the high
level already attained in the attempt to
discount the promise OF the COM
ing years prosperity. Among these
may mentioned I an absorpsion. Of
protectins OF the long expected plan of
consolidation of the Vanderbilt; an agree
ment for new division OF territory and
contor. among eastern trunk lines inoi-
dent TO the Atlantic outlet for the Goud
system; the coming formation of Sc
cuirties holding company for the CONSOLE
dation of control of the North and South
trunk lines a reorganization and extern
sion OF the Rock Island system and others
nari over In scope and which were given
less attention. None of these has re-
ceived formal official authority. The
average level of prices Of railroad stocks
has been lifted this week In consequences.
to tho highest level In a generation, so
that the rate of return on investment at
the present dividend rates has been re-
duced TO less than 3 perhcent on the prom
inen. railroad StoclNs1 with an established
dividend record the country over. Prices
OF stocks afeis higher relatively than
lords 1t Is noticeable, also that the in.
vestment demands fof-bonds Is laHguld
Taxing the average price of twenty req
reseTtative railroad stocks, the figure
reached this week was 1858 Erhe aver
age price of the same stocks on May
l. last year, the highest touched before
the stock market panic. was 1880. A
harrison of nPiCaa of frvAlUa
tative industrials which reached an aver
age Price 4his week of $3.50. touched 1888
at the high level before the panic. The
same stock In the spring of 1899. at the
period of wholesale Notation of Indus
trials, touched an average of T61, while
tho twenty representative railroad stocks
were 1856. The ease of call money this
week has been a fostering influence upon
the speculation and the export Of s.. 750-
900 In gold has not affected the local
money rates. There has been much dis
crssion. however. of the probable extent
OF the gold exports, the amount of our
present foreign Indebtedness maturing
this fall during the usual export period
for our domestic product and the future
effect upon our money market Selling of
stocks here for London account and the
preparations in Paris for the comisiTig
conversion of IL per cent rentes into 3
cipitated the gold exports. Future de-
mands are dependent upon the volume of
our domestic exports as a source of sup
ply for foreign exchange. Governmental
fisca, operations have conserved the ease
of the money market. The Government
revenues for the month have run less than
81, 600. 900 under those of last year The
decrease In internal revenue being more
than half offset by the increase In Gus
toms revenues, but the Government ex-
penditures thus far this month are five
millions In excess OF those of last year
Tho Government deficit. which reached