The Montgomery advertiser., 1902-07-13
WALL STREET REVIEW
BANK STATEMENT PROVED TO
BE FAvoRABLE.
After It's Appearance Prices I'm
+ proved and at the Close Were
at the Highest Level
& of the Day.

New York, July ia dispos,t,or ~ al
vance prices was held in check toisy Nv
FEARS that poor bank statement whuld
innuce selling of stocks. This check va
s rsinoved when the bank statement proved
closed firm with the average ,evai ~
prices az about the highest. the prir,-
cIpai evidence of strength was in the
sSl tcbgSsdss especially the corn carriers.
took IN nv wh ieaa was neglected yesterday,
souri Pacific hung back until the late
4ueahngs, when II rose In large deaiinos
point, Rock Island rose four noi15s
Ssy 2 ie N Z points higher than yester-
Jay highest but the dealings were
small and the gain was not well heid' A
rise OF nearly point in New York CEN
t.ai was apparently due to support in
view OF the decrease in gross earnings
in5gstrsa LOT June by the system. The
recovered In the late rally The hank lost
IN cash less than 5000 90 compared with
expectations OF a decrease of five mil
IONS. adding to this the s4,107.O0O loan
decrease leaves discrepancy still up
wards OF ten millions In the reported in
crease OF SIG, 1850 in deposits. n will
|sbe remembered that last week loan In
crease e OF over N7,oooooo failed to ma a
renection In the deposit item. Today,s
discrepancy Is explained as due to q pYo-
cess of rectifcation under the abat russ
system OF averages used w the banks If,
their computations 49, eA -
and strength in the stock rnarket tbis
week. but 1t has been of an irresrIar
character and confined to comma RI tiveIv
Few stocks 1t Significantly obvious that
the prevailing sentiment amongst secu-
rity holders is one of confidence IN the
maintenance of the prosperous conditions
OF the country and the continuance OF
me present earning power of securities.
Holders OF railroad stocks especially
snow no disposition to part with their
property. The active leaders seem to feel
themselves exempt from danger of a
stringency in the money market and have
aeait freely In stocks. shifting operations
from ono quarter of the market to an
other, but combining their operations to
few leading stocks in each greur. The
sympathetic influences of these sperfaI
movements upon the general list has been
stsrenstnening and : Is highly probable
that they designed to support values to
some extent and thus to guard the cred
It's which the same large interests are
employing In other projects of magnitude.
IL Is novelty for large interests to be
side both In stocks and grains. Yet It il
generally assumed that the so-csIled
western contingent" which controls the
corn corner in the Chicago market IL also
sne most inhuentlal element on the bull
side In stocks. This Is explained by the
TACT that the grain speculation is ii, the
remnant of last years deficient cora
crop. while the prospect for next years
crop IN present conditions Is considered
excellent. The Government crop 4reS,ort
Of conditions as of July /, published ON
thursday. was taken as confirming on
timistic ideas of the coming crop and
the rains reported as doing some damage
during the week have not been sufficient
to disturb the general confidence i'm a IA
vorable outcome. An important influence
also in maintaining prices at a high level
is the general conviction of large projects
for extension Of control In the railroad
world by existing large railroad inter-
ests or by new Corners In the railroad
world. For many years the Control OF
the big railroad systems of the country
have been felt sufficiently secure by the
centralized holding of minority of the
stock. The Northern Pacific episode and
the passage of control of the Louisville
ana Nashville as mere incident then
speculative turn in the stock, have
taught the lesson that In the larger mod
ern order of things the buying qIp of
great corporations Is more easily effected.
1t Is likely that the prices maintained for
some stocks are due to the purpose OF
INSIDERS to discourage its purchase for
control In the open market The desire
to control Reading is attributed to vari-
Gus railroad interests and the same Is
true OF Chicago and Northwestern and
some other systems, The high prices Of
such stocks are urged as an argument for
an advance in other stocks in an anoma-
lous circumstances. The Industrial field.
on the other hand, The process Of CONSOLE
dation and of excessive capitalization Is
felt to have over-discounted the future
and this class of securities continue to
sell at prices allowing a return on money
invested such as would invite immediate
absorption in the case of any railroad
stock. The weeks events in the money
market have gtvcn convincing evidence OF
the enormous capital requirements of the
country growing out of the unprecedent-
ed activity in all directions. Millions
have been shipped to interior points by
the New York banks and foreign bank
ers In New York have renewed their bor-
rowing In foreign money markets. This
foreign borrowing has averted an out
ward movement of gold, which is thus
shown to be more urgently required at
home The exigencies of the corn corner
in Chicago are assigned as a reason for
the large demand for currency there, but
the demand comes as well from South
GFn points.
The banks of the country at large are
In, fact withdrawing their deposits from
needs. The active demand for money
may be one OF the most important indi-
cations of a country's prosperity. up to
the point where productive enterprise out
runs consumptive needs. But activc
trade demands for money are commonly
looked to interfere with speculative &C.
tivity in securities.
There has been a fairly large absorb
ton of bonds and a rather irregular
movement OF prices United States re-
funding Us have declined 1-S. the new
As and old As registered Ia and the old
old As coupon 10 on call during the