The Montgomery advertiser., 1902-08-30
WALL STREET REVIEW
A REVIVAL OF CONFIDENCE IS
 SHOWN.
In the Final Dealings the Market tBroadened Out Into Amina- tion and strength-Shaw's
 Scheme is Approved.

| This was Tn face of a rise in the call loan rat | 10 per cent and a f; recast of the blrk statt | ment indicating a cut in the reserves of nearl S6.ooo. ooo The immediate prospect in tf | money market seemed to be overlooked cn q | count of the reports of the comprehensive pl 1 said to be favored by the Secretary of Treasury for the expansion of the note cir ' | lation of the banks by which 1t is hoped to | lieve the demand upon lawful money res | Tor use in the circulation incident to the
 moving period. It will be remembered nq | the offer of Secretary Gage to redeem l- n
 made in April of last year had resul' .,
 to the lst of January of the present
 par value 6f sss' a22. 80 en and in trp,' the to the money market including pren l SII II.I44,e42 These disbursements /. important influence in maintaining
 l quillfty of the money market last Fs
 Governments standing offer proved
 | tive that the banks began to sell
 retire their circulation in the SD / idly as the law would allow. IT l. | tralizing the bond redemption ,e- | tary Shaw withdrew the offer ef ch | His efforts tu stimulate tho sicn are evidently due to a iecolect con. | diticns thus caused by the redet Gov ernment bonds. Prices of tn, have declined materially since the al of | the Governments redemption They | have risen again since the new | plar wes discussed and today the 'es of the As Jumped % per cent. IF the scanty floating supply and the ies of oank note expansion The enc effect upon sentiment of the discussl Is pro- ject was supplemented by the tat the | language of the circular issued ,uthern | Railway voting trustees could pted as | indicating the incubation of Il for A Southern railroad merger. Thei le usual rumors also of early settlei the an- 1 tnracite strike The buying Pacific was attributed to a desire on of the | insiders to encorage converso nis into stock. There some poin reRlarity | in the stocks American Bicy tiles in- clding the bonds upon which & expet l. ed Monday. were notably e selling kas accompanied by reports was due | to lididation induced by th' ~g retire ment of a leading interes ison and Canadian Pacific were conspi activity and strength and there were If a point or more by many less activ .s
 The bond market firm 1athy with stocks. Total sales (par 75OOOo. The average level Of pric .tocka has advanced this week, the inspection l of the chaogcs shows them been yer v neven. poverfl and Inf sr.c tive combination has made deu' efforts to advance prices and to awak 1eral spec uative interest in the cir method was to concentrate their nd manip- lation on one stock of stocks | at a time. proceeding iron another on each sccessive day. On uef of the week | the bsiness in somue one 2 quite over shadowed the rest Of the %. Followins | the advance there was case heavy | realizing, which carried back WhIIc | a new point of strengt hw Z, ,rdne These movements had no specih, ,yelonpent to | accont for them and thue ,n was Vow edly based on the genere e of prosper ous conditions for the IT the coming 2 | year by reason of abun IDS and undi- unfinished business activit movement en- contered several obstac ng the week | but the market offered sistanc etc the various reactions, as go ing demand de- veloped in the course declines Mich | solicitude exr- ious times over the capaci' , market to carry the ST .sn through the | period of ., needs of the cir | culat'" .yement of finds to the | in this feeling The spec however, professed confidence
 .ty of the money spply. and the -ey rate; by It's stability. helped to
 .,e rising prices were taken advantage of at all stages to effect very heavy realizing on the part of the previous speculative buyers dealings were resulting in the transfer of hold ings from stronger to weaker hands. It. so ments of tho week came in the midst of lIaavy speculative bying in the stocks immediately affected. The reduction ot the dividend on Reading first preferred came while Reading was being bought eagerly in 1000 to 6,00o blocks with the natral result of heavy uii- loading by disgusted spectators which turned
 in Atchison ulso was checked by the publi- cation of the report of net earnings for Jly, showing a heavy decrease compared with last year. but the quick relaxation of the heavy selling pressure. was very notable in standing ready to take unlimited offerings at concessions. The condition which caused this tendency have light thrown on them by the circular sent to stockholders by the Southern Railway voting trustees. explaining their ac- tion in deferring the declaration of the divi- dend on the preferred stock winch would re- suit in the dissoltion of the voting trust.
 'The results of the past eighteen months. say the trustees, in connection with railway corporate properties are exposed or the con trol of their stock being bought up in the market by purchasers not identified with the property or permanently interested In Its de- velopment and improvement"
 In other words. 1t is desired to avoid a repe- tition of Northern Pacific and the Louisville experiences. The same thing obviously applies to the Reading. in which the declaration of the full dividend would also have dissolved tht Al..w Thn fact hat iG IaTa necessary to extend the voting trusts in Orddr to continue the present control of the proper ties might be construed as admission that the present actual ownership is not suff cient tC accomplish this. It may also indicate simply an unwfllingness to tie up the large sum ot capital which wtrhld be necessary to control by ownership and which is known to hae proved irksome in the case of other projects of the combination The episode Is highly significant of the urgent demand likely to spring up frcr one cause another. sometimes purely specu lative, and to attain sufficient properties tc achieve the actual absorption of the control of some of the largest railroad systems: The high level at which prices are held Is due tc the same feeling in addition to the confidence which may be felt in the actual earning power of properties to make adequate return al present price levels. for which the rnasCn is not clear in many cases. In the money market problem interest has centercd this week unor tn question that substitute will be offered this Autumn for the relief that has been af- forded by Treasury Department measures for several years. The Government refundinG law with the bank note expansion Included large increases or deposits or tiONefnmCNt lun'iS IT national banks, purchase and retil ement of bonds by the Government have all been resort ed to until it Is bel eyed the available supply of Government bonds has been swept from the market or reduced to such small prop nr- tions that any considerable demand lifts the price to a point where it is improbable to use them either as security for bank circulat on or for Government deposits. The large growth in the Government receipts from customs IS proving sufficient to more than offset the re- auction in internal revenue taxes by the ah1li- tion of the war taxes. The Governments sur plus revenues therefore threaten to make troublesome requisition upon the money market again while the available means of reaction are much exhausted. This was the oppressive influence upon the stock market during the week and is expected to be so for the imme- diate future.
 Conertitle and speculate bonds have been active during the week and have moved in sympathv with their related stocks Tinted states new 4's advanced 2. the "ld As |. the 2's and 3s 3, and the 5's E per cent as com pared with last weeks closing call
 Money and Exchange
 NEW YORK. Aug 29 Money on call firm at 2a6 per cent; closing bid and asked 4a5 per cent.
 Prime mercantile paper. 5l2 per cent.
 Sterling exchange easy at 4. .S6 60 for demand and at 4S375 far 60 days.
 Posted rates 95d4 S5i3 and 4 99'
 Commercial bills. 4.83hd4 93&
 Bar silver. 52lh: Mexican dollars. 4lA.
 Government bonds, strong: State bonds in- active; railroad bonds. firm