The Montgomery advertiser., 1902-08-03
WALL STREET REVIEW
sEMI-sTAGNATIoN AGAIN PRE-
WALLS IN MARKET.
Only Few Professional Room
Traders Had Anything to Do
with Speculation-The Days
Changes Slightly Mixed.

from last nights level at any time. Tne
holiday In London left the market with
out any orders from that source and en-
changes are slightly mixed. but the clos
ing tone was heavy The bank state
ment failed to conform to expectations,
but its publication did not affect the
market to any appreciable extent. In
sead of an expected decrease of over 81
100000 in cash, the banks report a decline
In reserves of about half q million. A de-
crease In loans was hoped for instead of
which the loan item was expanded &c.
6T7.100 Inc resulting increase in deposits
has swelled the reserve requirements to
the extent of H,262,075. which together
with the decrease in the. cash, brings
down the surplus over the legal re-
quirement to the extent of $,754,zib. To-
days money and exchange markets were
nominal. The fact that the next availa-
BILE steamship for shipping gold to Paris
the question of further gold exports. The
only features in today's market worth
specifying were advances In the local
fractions. with subsequent reactions: a
loss of over points In st. Louis and San
Francisco and buoyant recovery in the
Central of Georgia income bonds.
This week has seen a check to the grow
ing disposition to baiy stocks which was
carrying prices upwards, throughout the
list. Various factors have interviewed
which might serve as explanation of this
check, but the selling seems to have been
due entirely to a desire to take specula-
tive profits. Commitments on the long
side had become considerable as a result
of long continued rise and the process
of proft-taking has necessitated a con-
siderable absorption. In some stocks the
selling out of the effective leaders in the
rather obvious. In others appearances
have suggested that the principal
operators for the advance have helped
the reaction with view to shaking out
weak and cumbersome followers with a
view to facilitate further advance and to
take on fresh holdings Of stock at the de-
cline. Such movements are incidents
of all professional bull operations. The
market has not yielded to acute weak
ness at any time and there have been sus-
tanning points of strength at all times
in the form of advances in special stocks
due to individual causes, real or supposed.
A strong undertone Is Indicated by the
fact that as prices receded the activity
Of the market has sensibly diminished.
showing that holders have withheld ofrer-
ings of stock at the lower price levels.
Last Saturdays bank statement was
predisposing cause for the taking OF
profits at the opening of the week. The
large loan expansion was warning that
the prevailing speculation was making
large inroads upon available credits, Whiie
the feeling in the financial community Is
that bank reserves should be conserved
| at that time in preparation for coming
| large demands for interior requirements.
The large exports of gold announced for
| Tuesday followed by additional ship
ments for Thursday, emphasized this inn
preston. Continued firmness OF foreign
| exchange market after shipments tndl-
| cate that further outgo was within the
probabilities.
Under ordinary circumstances a relaxa-
| ton of foreign money markets might be
| looked for after the month-end require
ments are met. But at the present time
| the London market Is confronted with
| of f0aF cent fnatall0Gnt on
| the $160, 900, 900 consol issue, while in Paris
| the bank of France Is making prepare
| ton for the rente conversion plan, when
| will necessitate a temporary tie up Oh q
| large sum to enable the government te
stand ready to redeem such portions OF
| the issue as holders elect not to exchange.
| The present large Indebtedness OF theNeW
York money, market to Foreign markets
| is nov we'll understood and the govern
ment financial measures referred to are
believed to explain the indisposition of
| foreign creditors to extend loans mere,
notwithstanding the advantage offered by
higher interest rates. The latter part OF
the month has also altered the expecta-
tons of relief to the local money market
by a continuing government denclt. Inc
deficit ran at one time to over Sl2.0OO 0OO
but has been reduced at the end of the
month to 7.49S. 800. Treasury officials ex-
press confidence that the revenues soon
viii show a surplus owing to the large
customs receipts, and 1t Is explained tnat
large part of the July deficit Is due 10
extraordinary expenditures in payment OF
war claims. An unexpected, development
during the week was the reported absorb
ton by the st. Louis and San Francisco
| of the Chicago and Eastern Illinois, thus
| insurang an entrance into Chicago for
that system. The recent large absorption
| of st. Louis and San Francisco was sup
posed to foreshadow its Incorporation into
| the Rock Island system and its strength
| has helped the advance In ROCK Island on
| account of the, readtustment OF ITS capl,
tia. Chicago and Eastern Illinois had
been marked out for transfer to some
other large system, but 1t was expected
| to go to Illinois Central Reports are now
| published that the Louisville ana Nash-
Vile also was a bidder for the property.
The fact Is disclosed that competitions
and rivalries have been involved rather
than progress towards readJustment OF
community of interests to insure per
manent peace and cooperation IN the
railroad world. such as was but recently
accepted as ideal towards which the ef-
| forts of the financial powers We're tend
| ing. In the Eastern trunk lines territory
also the progress of the plans for the
Gould systems outlet to the Atlantic is
| watched with some solicitude as to the
harmon Gus adjustment of the new rela-
lions thus created. The Rock Island re-
| adjustment plan, now denmteiy promnl-
| gated has been the subject of great in
| terest and conflicting views the prevail
| ing tendency of capital conversions to-
| wards exchange into foreclosure issues on
a highly expanded basis of valuation is
| viewed with considerable disquiet In the
| financial world and the addition of sub
| sequent stock issues gives rise to conject-
| ures as to the possible status of SUCH
securities in the probable periods or de-
preston which may oceur4in the future
| as in the past. There is some question
ing heard as to the ground for the great
| expansion in valuation which are wit
messed as a result of simple readjustment
| of capital issues on property which is IT.
/ self left unaltered in Its volume or earn
1 ing power Some of the reports of net
| earnings of railroads for June are not en-
/ tirely satisfactory owing to the large in
/ roads upon increases Of gross earnings
made by operating expenses. However,
| general conditions of the crops, of the
/ iron trade, of industry in general and OF
/ current railroad earnings, are considered
satisfactory and have had no apparent
/ bearing on the reaction in the stock mar
ket. The only notable activity in the bond
| market has been in convertible bond is
| sues. The investment demand has been
| quiet. U. S. old fours registered and the
fves have advanced IA per cent. on the
i call.
The Financier's Statement.
New York. Aug 2.-The Financier says
4