The Montgomery advertiser., 1902-08-17
WALL STREET REVIEW
RESOURCES OF THE LoCAH
 MONEY MARKET.
The Stock Market Was Dull and Professional Throughout-De-
 crease in Exports.

| New York .Aug4 16.-Today's bank
 statement reinforced the admontion of
 yesterdays per cent. call money rate | as to the narrowing resources of the To- | cal money market. In spite of the relief | afforded by extensive transfer of loans
 to foreign lenders through the mejium | or the exchange market, the large local | inquiries have resulted in increasing the | average of the bank loans to the extent | of S3z60.000 The stock market was dull | and professional throughout. There Is
 no loan market on Saturday and the practical effect of the bank statement | on the money market must await the opening on Monday. It Is clear that
 higher money rates are indicated. There | was a continuance of the aggressive bull | movement in the Toledo, St. Louis and Western stocks. but they reacted sharply | with the generally heavy tone developed | after the bank statement. St. Louis | Southwestern, pfd.. was rushed up to
 II over last night just before the close. | Southern Pacific and the Western stocks generally were subjected to profit talk | ing. The reported intention of the 9-uth- | ern Pacific directors to ask authority to | issue S100000 0a) of bonds to improve the property Is given as an explanation of | the recent strength of the stock. The market closed heavy.
 The country's brilliant crop prospects and the danger of a stringency in the money market this fall have been the l ket this week. The week opened with the latter influence decidedly in the as- cendant. The bank statement. published | last Saturday while the Stock Exchangs able an inroad upon the surplus reserve
 of the banks already at an unusually low figure, that disquieted sentiment | made itself evident in free offerings of stocks. The maximum rate. which had
 not exceeded per cent for call loans | ran up to per cent. and the majority of call loans have been placed at that rate during the week. Then the publica-
 tion. of the agricultural departme mt re- port and the expert estimates based on
 it's figures turned the tide of sentiment towards the bull side. There was some later relief from apprehension over the
 money situation wrought by the abund- ant supply of foregn exchange bills. in dcating new offerings of foreign capital | in tha local money malket. Rumors of | important new railroad combinations were | renewed and the operations of powerful ! speculative pools gave the market some animation. The appearance of the mar
 ket has been somewhat spotty. however, and the exigencies of the money market
 have had rather subduing influence up- on enthusiasm. The Government crop re- port seems to warrant the belief that the grain harvest of the country will pass the previous maximum. The foreign re-
 qufr. ments are not yet so clear but 1t is evident that we will have very abund- ant surplus to send abroad Railroad au-
 thorities from all parts of the country report very large current traffic and prospect of all the bus ness in the fu- ture they have facilities to take care of. The extraordinary iemand of the iron and steel countries ir excess of domestic capacities and imports have been made to meet requirements. The anthracite miners stock. the only seriously unfa- vorable feature of the situation, is a fac tor in restricting the output of iron. Preparations for increased means of pro-
 duction will do away with the necessity of imports of iron before long Jobbing
 centers report strong inquiry
 for,,IsIl,. for fall business, bank clearings
 large and all other signs agree in the promise of unvarying activity in trade
 and industry for the coming season. High money rates under such circumstances are the natural sign of profitable use for money in all sorts If wlys. There is no
 restriction of credits o dollts of the soundness of the business condition to
 account for the high interest rates W hich money commands. but Tn he case of securities which may c held 2t artificial levels by means of borrowed cney. there
 s the danger that q withdrawal of credits from the spectators WI a leave the stock market with put eutiiC ent support for prices and would lead to collapse. Ex- perience abundantly proves that a steady interest rate at not exceeding per cent
 in mercantile affairs 6 possible while money rates on the stock exchange for
 the purpose of holding s",li"ities on mar gin are soaring to panic figures. It Is
 clear that the demands upon the money
 market this fall will be unusually large. At the same time the Indebtedness to
 foreigners Is known 10 ne extraordinarily
 large. Syndicate borrowing abroad early
 In the year may be presumed to have
 been predicted upon maiat nance Cf our
 favorable trade balance 0t last years
 level instead of that. the excess of our
 merchandise exports over imports for the
 seven months of the calendar ear Is
 Sl33. .325 S32 less than last wear Tfere has
 in consequence, been a "ery extensive re-
 ncwal of foreign borrowing to later
 maturities. This short r'terest over
 hanging the exchange market fas deter.
 red prospective shippers of merchandise
 from offerings bills against these future
 shipments. as the possibilities of covering
 at a profit when the crops move is much
 diminished, But while the trade balance
 In our favor has thus m,,telially been
 cut down 1t has stin mo lnted to tn" sub
 stantIar figure of Sl9l ij5,ii1 .n tho seven
 months just past, and IS 1dbstanuai'y
 added to with every passing inonth The
 prospect for the export demand for the
 coming crops indicates that the increase
 In our trade balance will !,e largely ac-
 Celerated. The beginning of the
 interior demand is now almost
 daily expected. Fears If ciSturhance or
 the market hy the .scvernn financial
 onerations are not altogether allayed,
 although tho continuing deficit in the
 revenue. up to this time !as relieved the
 money market from requirements on that
 score The enumeration of influences
 which have heeu made [" subscrve speru-
 lation would not be compete without in
 cluding the sailing for home of J r.
 Morgan upon whose .eturn many nnpor,
 tant nroiects are supposed to aWalt, and
 The prospective return ns J. K. keene.
 whose speculative leadership in the prac-
 tical operations in the market IS some
 times a factor In animated deaAngs
 fnw speculative bond issues faVe com
 nromised the feature l that depart.
 mcnt, United States gs Pdvaneed 1-S
 and the 3s new As regular and as i-4 per
 cent as compared with last week clos
 ing.