The Montgomery advertiser., 1902-05-18
ILL STREET REVIEW 0fDED RECESSION IN THE
 FIRST HOUR.
1oe the Bank Statement Appeared, owever, Prices Recovered. The Close Irregular With
 Declines from the Rally

" York, May 17.-Prices made a de-
 recession in the first hour of today's
 session because of apprehension
 the efforts to make the anthracite 4sp strike a national coal strike, but {1cally recovered after the bank state
 appeared. A fall of nearly two
 Tn Colorado Fuel and heavy selling EW Bhited States Steel to below 40 unset 4o4s the close and made it irregular at <1mes from the rally. The selling of 4H1ted States Steel may have been due to
 1ksl of special damage to that industry <Z4[n, possible interruption to bitumin-
 coal mining or it may have been con-
 LII with the meeting of stockholders
 Monday to ratify the conversion of
 eerred stock and the issue of bonds
 cNDank statement showed a decrease ~ nat much had been expected; but this M 3gnored in the satisfaction felt over WY neavy reduction in deposit liabilities 1<ed by loan contraction by which the PUB reserves were recuperated to the @N8ut of nearly five millions. The weeks Xuction of $22. sos, 200 in the loan account
 only once before been equalled. In 3W4iWeek ending May IS. 1901, the banks S@&l3eed their loans s24, ,2o4, 500. This was M4sWeek following the panic week in the
 Qex market when loans had been made pflctically without limit to check the Paulc and when the buying to support Lq market was followed by quick liqui- 0-<5qn after confidence was restored. The % weeks events make it clear that no liqutdation has occurred as this loan %444actton would measure. The local AE43 companies have been large lenders
 ne week. Banking authorities esti-
 eN loans placed by the trust companies 4k 44 high as $20,00o,000 There has been 1c4nng also for account of interior mon- <sSwing abroad. reaectsi in the the 4Nxkn exchange market. It is re- IUd that there have been large sales n nf r. III zfonsol subscription which have risen MZIQndon to a premium of. ? 3-16 The pxoceeds of these sales would represent. Qx o0urse, actual replenishment of local mdn&y resources. but the banks figures muEt represent for the most part shift m pf accommodations rather than loan
 Il1e stock market has settled back into ax46sonable a condition of dullness during td4 Week at a generally lower level of <pf1Fe1. A process of readjustment has bf4n*in progress both in the stock mar ket and the money market. This has been Accomplished rather by a shifting o14ecounts than by an active liquidation, affH6ugh there were some sharp declines forced on Monday incident to the discrim- 1nation by the money lenders against eoEnes of the collateral that has found it's wayNinto loans during the late season of ifberai credits. This weeding out pro- cess was the consequence of the previous developments in the Webb Meyer stocks and the constriction of the money supply that had been disclosed by the bank sfatfment of last Saturday. Energetic measures for the recuperation of the mrEey market were taken. which were facilitated by the high rate for money ruling here, Supplies of loanable funds were thus attracted to New York from all domestic centers and foreign sources were drawn upon even more heavily. The rate for sterling exchange relapsed vio- 1ef1fl< to the lowest point of the year under the heavy offerings of bankers biIls In the process of drawing on foreign credits. The supply of commercial ex- change bills in the market was very scarfe and the bills sold were, in effect short sales and represented in a degree q speculation against the future supply of 4exchargei depending on the corn crop and the resumption. of corn exports. In any event. the weeks replenishment of aoanabfe resources from foreign markets represents obligations to be met in the future. It was the realization of this fact that checked a renewal of specuia- tive buying of stocks as the measures of re1iefsof the money market became effec- tive and the interest rate declinedsk There was also some large loans placed here directly by branches of foreign bankers. Another nhase of the process was the transfer of holdings of American securi- ties for domestic use at London. The process of transfer accounted for the undertone of resistance to depression in the local stock market.
 The anthracite labor trouble is an ad- QitiOudl lnceutiVe 10 conservatism. The Immediate effect of the declaration of the strike upon the coal roads was not acute and especially considering the assurance which has constantly been expressed in Wall Street that there would be no strike
 The crop situation has been very at- tentively studied during the week. The outcome of the years cereal crops is re- earded as of prime importance in the coming years prosperity. The monthly government report on Monday was ex- pected to show an important decline in the condition of wheat but the amount of acreage abandoned was disagreeable surprise.
 It was argued, however. that the favor- able weather since the date of the report must have improved the conditions of the winter wheat, while the damage to the abandoned acreage has come early enough to permit of replantinG with the all-im- p0rtant corn crop. With that crop barely in the ground and the spring wheat crop still to be indicated. the final outcome is felt to be too obscure vet to warrant speculative ventures. The progressive duilness of the market has been due in a small part to this cause. The distri- button on Monday of $l0,0O0,000 dividend 10 the subscribers of the New York Steel Corporation underwriters syndicate at ka tha G.-