The Montgomery advertiser., 1902-03-09
WALL STREET REVIEW
THE EARLY MARKET SHOWED
 IRREdULARITY.
Pending the Appearance of the Bank Statement, Little Was Done Cash Losses of $o,OOO, 900
 Shown By It

New York, March s.-Considerable in
 terest centered today in the bank state
 ment and pending its publication, opera
 tions in the stock market were without
 much significance except in a few stocks
 The early market showed irregularity,
 but the prominent railroad stocks were
 firmly held and the limited selling was
 chiefly in the speciaities. partis"lMaf,iy ns M,s
 souri Pacific and Rock Island advanced
 those stocks 1d2 points and there was
 some disposition to cover in the iatter m
 the spirit speciaities, bringing the entire
 market above last night. Colorado Fuel
 was lifted S-4 above yesterdays close
 but dealings were unimportant in the
 other metal stocks except Amalgamated
 Copper. which showed momentary
 recent demand for inactive stocks but
 material advances were confined to Pa-
 cific coast common and the second pre-
 ferred, Westinghouse electric, M1nneapo-
 latter being bought on expectations of
 renewed agreement with the Panama
 Railroad Company. Publication of the
 bank statement, showing cash loss or
 nearly $9,00O,0 900 which more than doubled
 the preliminary estimates started sell
 ing. Prices, however. did not yield much except in some of the stocks which had
 notably advanced earlier and there was no decided pressure at any point. Some satisfaction was felt at the loan reduction of $S,0OO, 900, this being the first in nearly two months. The immense cash losses was quite generally attributed to the va garies of the banks average system. With surplus reserves down to less than unchecked the opinion naturally prevails | that higher money rates are imminent. The stock market closed active and | easy. There has been some movement of prices of stocks during the week but | it was by no means consistent and was not well held, the market showing a ten- dency to return to its former level, | whether from advances or declines The money market situation was the cause of | uneasiness which became rather acute in | midweek. This was due to the calling Of 1 20 per cent of the syndicate subscriptions | to San Francisco traction merger and the | made to San Francisco through the sub | treasury by telegraphic transfer. This would mean the withdrawal of money from the New York money market for deposit In the sub-treasury and its pay ment into the San Francisco market from the sub-treasury there; an operation
 which the governments large holdings of gold in San Francisco would make con-
 Wall Street was mystifed. at the same time, by the inquiry at Washington by New York bankers as to facilities for transferring in this way $5o.00O 900 to s6o, .
 0000db. This threatened an. inroad upon New York reserves beyond anything call culated upon and promised serious sit-
 uation in view of the low level of the
 surplus reserves of the banks and the
 other requirements for gold exports which
 had to be met. The equanimity of the
 speculative mind was somewhat upset in
 consequence and prices were inclined to give way. They recovered when it was announced that the San Francisco remit tances had been arranged for through the regular exchange market and would be settled without any actual movement of cash which those interested in exchange banking seemed desirous of avoiding This episode seemed mainly responsible for the principal price movement of the week, The sensitivenes of the market to the condition of money reserves is per fectly responsible.
 With the loan and deposit items of the bank at higher figures than even be- | fore. the small surplus represents an even smaller proportion of actual re- serves than is indicated by the actual | reserve. In fact, under the system of l computation by averages used by the
 clearing house banks with aggregate fig | ures such as those now involved in de- | posits and reserves, the present surplus
 reserves of the banks must be regarded | changes either side of the line of the l legal reserve limit from day to day in | the case of syndicate loan operations on | the scale become familiar to the New York market. It may easily be seen that an intimate knowledge of the condition of these large syndicate loans Is the req
 son for the unruffled placidity of the
 money market in face of nominal showing
 by the banks. The liquidation of even
 one individual syndicate might put a dif- ferent face upon the whole money situa-
 ton over night. The powerful combina-
 rions which have kept close up on the
 available credits of the market since the
 first of the year have every interest in conserving the quietude and steadiness
 of the money market and are possessed of enormous resources for doing so. The New York money market, however, is by no means exempt from the influences of foreign money markets by reason of large obligations still outstanding as a | result of enormous repurchases of Ameri- can securities from foreign holders in | last years struggle for control of trans
 continental railroad systems As a conse- quence. the requirements by one for eign center upon another for transfer