The age-herald., 1902-02-09
BANK STATEMENT
 FROzE THE MARKET Came Like a Dash of Gold Wa
 ter on Spectators LOANS GREATLY INCREASED Large Interests Have Made Detern1- Ined Efforts All Week to Start
 Up Interest, But With Little Success.
LOANS GREATLY INCREASED

New York February 8. - The weekly bank statement came like dash or coio water in the face of the market today and induced precipitate offerings Of stock for a few minutes. The way In "hieil these offerings were taken indicated very strong and determined support With , large resources at command, ana the market rallied strongly, closing firm With . some stocks at the top prices Of the day. Only once before in the history of the New York clearing house has the loan expansion for a week exceeded that re ported for today of $2S, ,97i, 50Q. For the week ending February F, 1901 loans in creased $3O 40, 000. This was at the time syndicates were rushing to secure control of the promised expansion of the coun- try's creoit resources for the carrying out of the vast projects which afterwards electrified the world. There can be no doubt that the present loan expansion represents in part the transfer of obliga- tons from foreign lenders Incurred dur ing the financial activities of last year of domestic lenders.
 The large speculative interests in the
 
 week to start the marker and have met !. with measurable success in spite of the checks received from several of the weeks developments. There Is on evi- dence of large participation in the mar ket by the general public, but 1t is in- { variably the rule that the public awaits the initiative of the professionals or in- siders and refrains from speculation, no matter how satisfactory and encouraging tba cranerol conditions until prices ad- vance.
 The professional element in the market has become impressed with the idea that favorable conditions have accumulated to a sufficient extent toward general upward movement, and they have been busy all week with various manipu- lat1ve devices to move the mar ket upward and thus attack the outside buying After working success fully for half a day on Monday they were met with the possible postponement by the Supreme Court of the expected decision in the Northern Securities case. The mornings gains melted away in few minutes. On Tuesday the announce ment of heavy engagements of gold for export on Thursday had the same enect. These set backs proved to be temporary and the market hardened and gained con- siderable activity and strength later in the week. There was a comprehensive up- ward movement also in bonds other than the first grade. ..-.--
 This movement was calculated to meet an argument often heard that many mortgage securities are selling lower than stocks which make the same or less return. This has been potent argu- ment for the contention that the prices of stock are already too high to war rant d bull movement.
 Hha tt1ro af In 1n5 ho sensational advance In many of the high grade dividend railroad paying stocks. Very small buying sufficed to influence these advances. The most of the total issue of such stocks is closely held by investors and is not for sale at any price so that large advances in the bids bring out but little stock. Much was hoped by the bulls from a decision in the North ern Securities case as the uncertainty on that subject is believed to be the prn- cipal restraining influence on speculative activity.
 Renewed attention Is called to the enormous amount of capital tied up In last years struggle for control of the northwest ern railroads and other corpo- rations by the present conditions in the international market and by a study Of the reports In detail of the New York trusts. The present export of gold Is
 
 gations which are believed to have been incurred last spring during the Northern Pacific struggle. These have been partly renewed from time to time as the re- sources of the foreign exchange market allowed, and have partly been paid off by the gold export movement in the fall The present ease of the local money mar lSet seems to be the inducement for pay ing them off at this time as they mature But the course of the loan account of the clearing house banks warrants the sup position that loans are being made in the local market to meet the foreign obliga- tions, thus transferring the credits from foreign lenders to domestic.
 The domestic railroad condition seems to continue highly prosperous as shown by the continued high level of gross earn ings reported from weekSto week. which the net returns for December of corn-car- rying railroads show that the shortage in that traffic has been more than offset by growth in general traffic.
 The demand for all goods of iron and It's products into the second half of the year Is reported in excess of the domestic power of production, and imports are in contemplation to meet our demands The improved demand for copper, both do nestle and foreign. is a relief to apnre. hersion in regard to that trade
 There has been a large business in bonds and some notable gains in prices. United States 2s and the old 4s advanced 1s per cent over the closing call of last week v ~ e4. fr