New-York tribune., 1902-07-14
THE FINANCIAL MARKETS.
FACTORS AFFECTING STOCKS
BANKS LOSE IN CASH HOLDINGS-RAIL
ROAD EARNINGS.
THE WEEK IN WALL STREET.


times toward a lower level of prices. Efforts
to maintain quotations at cheaper figures were
not however successful, after declines re-
coveries generally took place, especially in the
high grade issues The copper stocks and west
ern Union showed exceptional weakness on SELL
ing induced by factors that had no bearing On
the general list and which in the case of west
ern Union presented no good ground for such a
marked depreciation in the price of the stock.
Attempts were made TO create an impression
that the far reaching plans of the Goulds would
be interfered with by other railway interests;
also that Western Union in losing the Penn
sylvania telegraph business would suner Sc
decline in income account. 1t may oe wen
to bear in mind that Western Union insiders are
buying the stock, and that If the stock only palo
4 per cent II would be cheap at present prices
And il may also be we'll to recall the fact when
bearishly inclined on the Gould stocks that the
fIouId PARTY is composed of some Of the strongest
capitalists and railroad interests in the country.
Crop conditions as shown by the government
report are excellent, but the chances are thaI
the situation is even better than given IN the re-
port inasmuch as the weather has been faVor-
able to a hardy growth ever since the hrst OF
the month. A large corn crop is PROMISED
Western roads are making preparations for
big grain traffic this year, but, notwithstand-
ing these plans and their increased equipment.
chandise traffic is enormous on all the railroads
of the country, and as a consequence the cur
rent light movement of grain does not prevent
big gains in gross earnings. For the last week
in June the gross earnings of thirty-flve ran
roads amounted to SS,374.906. against SI,'4''lSo
in the corresponding period last year an IN
crease Of s627 726. or $40 per cent. For the
Month of June the gross earnings of thirty
eight railroads amounted TO S31, ,4165 523, against
$50 654 42O in the same period last year, an IN
crease of 81 1e2 1O3. or 5.91 per cent For the
fiscal year ending June 80 the gross earnings or
thrty-seven railroads amounted to S4o4.ooo'9oo,
against S312 4O1, ,511 in the corresponding perloo
last wear an increase of S316S44io or o.ol per
cent With earnings so heavy. and no prospects
Of a let I'D in the traffic movement. there should
he no uneasiness in the stock market over pass
,,, declines in values No depreciation can take
,iace in the intrinsic worth OF investments as
,or, as earnings continue at their present or
even a lighter rate
The copper shares were sold by interests 'ha'
are we'll informed regarding the copper sllua-
tion. and il was reported that efforts would De
made to bring about a materially lower ieVel OIL
quotations Copper trade conditions are saiu
TO be less promising than they Were ie"
months ago Production is large. prices are
low and the demand does not appear 10 De
heavy enough to prevent the accumulation OF
s,rnlus stocks or to make possible better prices
for the product The effect Of the demoraliza-
ton in copper in the last year on the earnings
Of the Amaigamated Copper Company Is re-
fected in the statement for the year ended June
/ filed by the company with the County Asses
sor at Butte for purposes Of taxation IoIai
net earnings of the constituent companies IN
tta z-ear amounted 10 So S255 553 compared
with s13.512, ,24O in the preceding year and 80
4a3 30 in the year before. In other words IN
hara was
earnings of 73 per cent. Such showing is ade-
oua+e reason for the reduction in the Amalga-
mated dividends. AS the Amalgamated COM
pany is entitled to 40 per cent of the earnings
Of the Anaconda and Parrot, and all the earn
ings OF the Boston and Montana. the Butte ana
Boston and the Colorado and Washoe, 1t may
he figured out that the company earned only a
LITTLE oyer per cent on its S155 100000 of stock
The character of sellings in Amalgamated
shares and in American Sugar Refining early in
the week suggested that a somewhat powerful
hear marty was et work in the market. Indeed
81 was said in certain usually we'll informed
ouarters that active efforts were being made
90 establish lower level of values. The bear
party sees in the corn market manipulation and
in money market uncertainties possible chances
of effective bear operations Factors against
the bulls in the current market are technical
in character and they not worth the con-
go lower as a result Of the operations Of bear
traders good opportunities viii be presented for
the acquisition Of securities at cheap quotations.
Money market conditions are evidently not
worrying the banking community, but it may be
well TO bear in mind that in view of the extend
ed loans OF the local banks overextended specu-
latiye operations may at any time be checked
by calling Of loans by the leading lending in
stitutions. Mr.. Gates and his followers evi-
IDENTIFY have large banking facilities behind
them, and the idea that the corner in corn, fol-
lowing precedent. will not be successful, is not
seriously considered by the element involved.
Despite their large pocketbooks and the favor
able statistical position of corn. the present
corner in corn is causing much uneasiness in
many circles. If the corner is successful a GER
tain number of people will be financially in
jured while if failure follows in the wake of
the present bull operations there may be some
uncomfortable moments in stocks. OF course.
no one believes that the banks will become
frightened and call loans the Gates crowd,
but the mere idea Of such thing naturally
creates uneasness in many circles.
The chief developments Of the week in the
money market were the demand for currency
from the West ard the heavy shipments from
this centre to Chicago Country banks in the
Middle and Far West are making unusual de-
mands on the Chicago institutions. and the lat
ter are compelled to draw on their balances in
This city. Fortunately the foreign exchange
market weakened in the week, making gold
ports improbable. 1t is still considered prob
able, however that shipments OF gold will be
made before the summer is over. 1t is estimated
that there are outstanding sterling loans to the
amount NJ SI0pDt06Do n the EuroDeau uonev