The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1902-05-11
WALL STREET REVIEW
STAKE ORDER HAb A DIsAs-
TRoUs EFFECT.
Il Seemed to XIII Speculative Inter
est In the Stock Narket-Un-
expectedly Poor Show
ing of Banks

@~-
New York. MAY io.-The strike order Of
the anthracite mine, workers seemed to
kill speculative interest In the stock mar
cases notably 30, hut the volume Of
LIQUIDATION was trivial and was rather
less In the coalers than in some other de-
partments Of the HIST. There were ssome
Pacific. st. Paul and number OF other
prominent stocks in which a speculative
party has been active recently. seemingly
on the assumption that DIVIDEND an
crcases were to be looked for in those
stocks. The Unexpectedly poor showing
by the banks had much the same effect
on stocks, causing struggling declines on
light selling. The opinion was heard tnat
the anthracite operators prefer strike at
this time, IL one IL inevitable. rather
than to have 1t come in the fall. This does
not consist with the confident assurance
that has ben professed IN Wall Street
that there would be no strike at all. The
strike Is not taken very gravely even
now, as Ii shown by the effect on the
stocks of the coal carrying roads. The
pared with estimates based on the known
movement of currency rs reported By the
banks themselves Of about R.0Oo.0O0 was
rather vaguely attributed to local move
ments." The loan contraction of s2.2zf5C9
showed but a meager result OF the stock
market Liquidation. There II nothing to
show how far the much discussed position
OF the trust companies may have been al
tered for the better by the weeks events.
With discounts In Paris and Berlin be-
low 2 per cent. and time loans OF four
and six months at 43-4 to per cent. In
l Nex, York and even HIGHER for shorter
LEGATIONS in foreign money markets IL nat
urally increasing and represents bal |
ance to be met at come future time
This weeks stock market started on In
the throes of the anxiety caused by the |
suspension Of three Stock Exchange
houses as the outgrowth OF the collapse of
the Webber-Meyer group of securities |
process of manipulation and speculative |
buying on credit. The stringency in the |
money market mad the inevitable effect |
OF calling In loans and inducing discrimi- |
nation against just this class of cullat- |
'eral. With credits curtailed the manipu- |
lators found themselves unable to sup
port their stocks. and the forced liquida- |
uon caused an utter collapse. AS the
up remarkably well under the shock. with |
the result that sentiment was greatly re- !
assured and confidence in the soundness |
of the position of the market became more |
general than for somc time past The cp-
isode has been called "a house cleaning
In Wall Street. There was a widespread /
apprehension that the condition of az |
fairs revealed by this episode and BY |
have an indefinite extension. To say MOTH
ing of the many new securities which |
have recently beer pushed forward into |
speculative activity and advancing prices, |
there are many old established high grade |
stocks which have been lifted to unpre-
cedented prices. for which there are no |
known grounds to account. Stocks OF this |
class gradually accumulate in the hands |
of investment holders, either for purposes |
of control or Indifference to the market |
fluctuations in the price. This may either |
be. In tine confidence that the ultimate |
value of the property will Justify present |
q z Ta VA mt r,t4n TN hn oil fifnfI
that the marketing of large holdings |
would break the prices. The small float |
ing supply makes such stocks quickly |
responsive to small demand or to ma
nfpulation, which is practiced in such |
stocks for the sentimental effect upon the |
general market. Such stocks are. how
ever. equally sensitive to light Iiquida-
tion. There are many stocks in the pres
price levels thus attained. The fact has
been often pointed out of late that the |
present volume of credits In the country |
Is greatly expanded and feeling on this |
point was made additionally sensitive by /
the action of the clearing house authori- |
ties last week in resolving that outside In
stitutions admitted In future to clearing |
house privileges must make weekly re-
ports for publication of their condition
and must maintain cash reserves in their
own vaults equal to those required of
clearing house members This was obvl-
Ously an admonltion that the local trust |
companies should maintain cash reserves
against the very large collareral loans
which they have out, instead of relying
upon their cash deposits with the banks.
which figure as cash reserves there also.
The nervousness of Monday was thus ac-
counted for. There was extensive calling
of loans and throwing out of doubtful
collateral. The money rate went to 20
per cent. on Monday and to Is per cent
on Wednesday. There was much uncer-
tafnty as to the extent of the troubles. |
The Monday market demonstrates how
flrat flnNo 10 a,ttl
back of the market and the liquidation
was well taken at all points of the de-
cline. The consequence was rather vio-
lent recovery on Tuesday and return
of calmness and hrmnesS afterwards. The |
uncertainties of the anthracite
labor situation were an influence all the
week. and opposing opinions as to the
chances of strike were strongly held all
the week. The difficulty of arriving at
4 fixed view of the outlook had the ul-
innate effect of discouraging speculative
activity and throwing the market into
dullness and neglect. General conditions
markets reflected Increased confidence in
! favorable outcome for the years crop.
the point was made that the drought in
Jury to winter wheat had come so early
rs to give ample time for replanting in
corn and other crops as possible OFF,
set to the losses incurred. The continued
pressure for deliveries of all grades of
ron and steel products was regarded as
evidence of the health of that industry.
But the iron and steel stocks on the
stock Exchange were not favorably ef-
fected. Conditions are reported to have
improved in the copper trade and rail-
'oad earnings continue to reflect high
degree of prosperity, notwithstanding the
small grain movement The weeks liGui-
dation in stocks has sensibly relieved
the money situation and the high inter-
est rate has attracted credit from interior
domestic sources and for foreign money
markets. The reply filed by the Northern
Securities Company to the governments
suit had a favorable effect as the con-
tentions made are regarded as strong
ones. especially is this true of the asser- |
lion by the company that some $4,000 900
cash had ben expended by them in ac-
luiring Northern Pacific and Great North
ern stocks.
The bond market has moved in SYM
Dathy with stocks over a much narrower
'ange. United States IS and the new A
declined Ia per cent as compared with
he closing call of last week
Bonds.
United States rcfunding 2's registered Ioels ,
Jnited states refunding rs, coupon &c.. oo,e |
inited States SIS, registered. ........, O8ic ,
United States as In0K