The Montgomery advertiser., 1902-12-07
WALL STREET REVIEW
REBUYING FOLLOWS. APPEAR
 ANCE OF BANK STATEMENT,
Weakness of the Showing Had Been So We'll Discounted That Its Publication Induced Little
 Outside Selling.

New York, Dec. 6.-Dealings in> stocks today reflected no change from recently prevailing doubt of the hesitation of the speeulaetive community. Professional traders were early indisposed to leave contracts open even over Sunday. Selling during the first hour was followed by re- buying after the bank. statement appear ed, the weakness of the showing having been so we'll discounted that it's publi- cation induced no outside selling. It Is reported that some large sums of cash are going to nearby cities for use as change in holiday business. It Is expected that the heavy customs collections by the government will continue for another week on account of the large importa- tions for the holiday trade. The small loan increase by the banks was not unex- -pected and 1t was even feared that con- siderable greater expansion had occurred in that item as several large transactions are known to have been made in the loans. The foreign houses are now the important factor in the loan market and 1t is believed that the resources for these loans have been secured by declining for eign exchange which Is in effect short sale of exchange. The high rate for time loans serves as an attraction to foreign lenders. There have been very large re- payments of foreign borrowings for some time which are believed to have been se- cured on very advantageous terms for employment in the stock market. Their ex- pration was an important influence in the recent nedVy HQulQatlOn m Ine StOCk market. Some of these funds seem to have been reloaned during the past week at the better terms now prevailing. Great operations in the stock market this week have been confined to the testing efforts of the professional traders. Some at- tempt was made to, lift prices early in the week on the assumption that, the De- market would relieve the tension there market would relieve the tention there and afford resources for speculaetive op- erations. The special reason for payment of 50 per cent installment of $15,000, ,0O0 of new. Illinois Central stock was assign ed as a cause of the speculative stiffness of money on Monday, but as the week progressed it was realized that whatever relaxation there might be In the money market was only temporary. The ugnt- ening process was manifest in the time
 money market. in which commissions
 were exacted for loans for the shorter periods which raised the rate to the equiv alent of per cent. The week passed
 without any export of gold to Europe, put $l, 900 went to South America to pay
 English obligations there for wheat and
 which Is anala gous to a remittance from
 here to London direct. The Bank of
 England has given up large sums or gold
 also for shipment to South America and
 1t is thought probable that further calls
 may be made upon New York. The ex-
 port of gold from New York directly to Paris or London Is believed to nave
 been evaded only by a large use of bank CTS cTcOlIH Dy SelllIE Ol DliiS Ol tAShoth6O to be covered by purchases later. A short interest in sterling exchange Of many millions of dollars is said to have been created in this way. The London money market has grown easier under the ln- fuence of large government disburse- ments and the payment on Monday to shareholders of the constituent compa- nies in the shipping combine so that large repayments have been made to the Bank of England which has left its minimum discount rate unchanged. Large forces of depletion are at work. however. upon the Banks reserve, and an advance Tn the bank rate Is looked for before the end of the year, and such an advance may draw gold from New York. In New York the banking reserves are suffering heavy depletion from domestic sources. Gus toms collections continue to run very high and demand payment to the sub-treasury averages $700 900 daily. The return move ment of currency from the interior is also delayed and large remittances have been made to New Orleans. It Is rumored al so in banking circles that loans made d. rectly in the New York market by inte-
 rior banks before the crop moving de-
 mand and while call money ruled high
 here have been withdrawn on a very
 large scale. The result Is to Increase the
 demand upon New York banks for loans at the same time that inroads are made
 upon their cash reserves Importance Is
 attached to the operations of the New
 York trust companies which are not so
 OBVIOUS 10 the puDNc owing 10 tnelr eN-
 emption from the requirement of weekly
 reports ot condition to the clearing house.
 The ordinary banking and loan opera ticns of these institutions have grown on
 an enormous scale during the year and
 approach of the year-end brings incen- tives to strengthen their position. This
 pi ocess is likely to throw an additional strain on the banks. The extent to which
 Notation of various organizations and
 combinations may figure in the operations of the trust companies Is a subject of
 much interested conjecture. The present slow market for new securities adds to
 the importance of this subject Interior money rates continue higher and the con- tinuance of active trade at a high level of prices maintains the demand for cred its throughout the country. The posSi- bility of a year-end money squeeze has been the dominant factor in repressng
 all active dealings in the stock market and financial powers are united in firing ing upon speculative use of resources which will evidently need for more es- sential purposes. There are elements in
 the trade situation as well, the definite outcome of which 1t is desired to await. The advancing tendency of wages of rail- road employees and the raising of trans
 portation rates as a set-off Is extending over the breadth of the continent. The effects upon railroad net earnings. upon volume of freight, upon cost of material transported and upon final demand for consumption must be readjusted. In the | iron trade also authorities report a ten dency rather downward and the holding | back of some work because buyers find 1 the cost too high the more so as present | stocks of material are exhausted The l efforts of professional traders to awaken | speculation on the score of the Presi- dents message and governmental affairs met with little outside response. Some | apprehension has been expressed that dis cussion of currency changes would cause uneasiness among the foreign creditors of the coutnry and help to unsettle the year-end arrangements with them, The | rehewed decline in silver and d hrnler | tone for copper have been incidental in- huences upon securities.
 The undertone of the bond market has been depressed in sympathy with stocks, U. S. 3s coupon declined 1-4 per cent as
 compared with the closing call of last week