New-York tribune., 1902-12-31

business was well under the phenomenal recofo
of 1901 Prices. however went higher thaI
ever before and at times speculation was ram
nent and unsound. Indeed the constant oulilhe
IF the market in the spring and summer ehoeo
in = collapse in the fall, in the course OF winch
quota tions declined from 10 to 40 points uhoei
the hest of the year Factors underlying the
stock market situation were of a character Ia
inspire confidence among investors and as
conseouence actual investment buying was
heavy on all declines. Bonds were In sooo ue
raand from investors. Wall street operations :
made the year profitable for the banks and
Ranking houses but the decline in stock prices
in the fall caused serious losses among spec
ulstive pools and individual operators AT the
end of the year values were many points q uiiGeI I
The inflated level that prevailed carrier IN lhs
season. but generally at net gains as corlpdreu
with the same time year ago
FAVORABLE FACTORS IN 19o2.-The lead
sng favorable factors affecting stocks In the year
briefly summarized follow: An enormous VOL
nine of general business. far in excess OF any
preceding period; railroad earnings heavier IMAM
sn the best preceding year. larger bank cleaI-
Sings than ever before recorded, heavy exports
Of manufactures. the largest production OF pig
Sron on record. the biggest crop Of corn ana
watts ever harvested and normal crop of wheat
land cotton. decline in the price of corn at the
END of the year, thus insuring heavier exports
of the cereal; action by the secretary OF lhe
Urea 70 relieve
lSet the extension of the community OF iheeIes'
,oljcv among railroads, the execution or great
corporate combinations, passage OF the FehhsHi-
yania tunnel franchise. the advance ID Ndsee
t.n1onp The railroads and a movement to increase
TRANSFORMATION charges. end OF the Boer wal re
l,,eol ~ Internal revenue taxes. formation OF
Ee $50 600 money pool TO prevent panic as d
,result of local monetary conditions, increase IN
E5iyidends by many railroads, the fnoorsefneIt
Bt the polls of the Roosevelt Administrator. seI
I-Ia,oeof of the hard coal strike by agreement 10
Submit differences arbitration ana the anllcd-
Nile settlement of the Colorado Fuel ana iron
hight.
I-NFAvoRABLE FACTORS IN 1902-There
.syere a number Of factors in the year 1ha1 al
-fected adversely for time stock market values
,,+ .be, were not serious in effect on the coun-
RVS prosperity or the intrinsic value OF Sc
<uri,ies Lsho conflicts were frequent through
ont the wear and. with the growing hostility eNl-
denced in labor and political circles against the
xocaIled trusts served to create uneasiness IN
Wall Street The anthracite coal strike began
II, Nav and ended in October, causing enormous
losses 10 the hard coal producing ana carrying
,-on7ranies Other leading unfayoranie market
9ar+ore we're the collapse Of the Webb Meyer
syndicate. the attempt Of the Internal Revenue
Collector TO collect two cents on each 'Aoo . pol
value Of stock used collateral Tor an! hiolisH
borrowed since July 1. 1901: action by the
government to test the legality of the NortherI
Securities merger. proposed retirement OF thteo
states Steel preferred stock to the amount OF
5000 nnn 400 by issue of S2.sU0ou.bHO bonoS. ~
mess of King Edward. break between the Ooulo
and Hartman interests over contest Tor cohIoi
of Colorado Fuel and Iron affairs high money
rates and low bank reserves. falling on III eA-
ports of food products, creation OF heaNy oept
ebroad Amalgamated Copper dividend reduc-
lion to one-half OF per cent quarterly anu
5hn development of the Venezuelan sit
,a+ion The louisville and Nashville coup,
whereby John w Gates and his associates
secured control Of that system in the open mar
ket did not exert a favorable effect on sentl-
rnent and had it not been for Mr.. Morgan's ac-
ton in taking the road off Mr.. Gates's hands
there doubtless would have been serious trouble
in several sources. The peSSimiSuc remarks
of an eX-Assistant Secretary OF the Treasury at
a public dinner the financial situation also
exerted adverse effect on stock values, while
overloaded bull accounts the Exchange nat
urally tended to weaken the speculative situa-
zion. Heavy absorption of money by the sub
Treasury. the failure of Corn King Phillips
early in the year and the subsequent Gates deal
sn corn did not help the market The refusal of
she PENNSYLVANIA Railroad TO renew its contract
with the Western Union, showing strained rela-
fions between Gould and Pennsylvania interests
because Of the invasion of pennsylvania terri
tory by Gould lines was utilized as bear argu-
trent on stocks.
MONEY MARKET cHANGEs-The money
market in 1902 was, a rule. higher than in
the preceding year. although the high record
of 10 per cent for call funds made in 1901 was
mot equalled by the record of 1902. In the first
week of January call rates went as high as u
per cent. but from then until March rates were
comparatively easy, averaging 2d3 per cent
About the middle of March the tendency
toward higher level. quotations the close
of the month ruling at 3G5 per cent while at
the end Of April rate of 1896 per cent
made In May high rates ruled in the first three
weeks with high record Of - per cent and
1oW record of 4 per cent At the end of MAY
quotations dropped to 212@31z per cent. There
was, however no real weakness in the market
throughout the summer, rates seldom got
Bow as per cent. while frequently moving
nigh as !. = and q per cent. At the end of
August a1a per cent was quoted. From then
No of he faS STIFF tTifh
high record of - per cent early in October
Occasional loans were reported low per
cent, hut the greater part of the business in the
fall and early winter was done from q TO L. per
cent, with q high rate of II per cent at the
close. Time money ruled at per cent in the
2sst four months Of the year. and generally a
commission in addition charged. In the
week of September "a the banks showed def
cir in reserve required by law. and had il not
been for effective measures by the Secretary of
the Treasury TO relieve the situation a big
deficit would have ruled throughout the last
months of 1907 One Of the important
features Of the money stringency was the ex-
tension Of relief by the government. which
anticipated bond interest. redeemed bond issues
Bno accepted other than government bonds as
security for government deposits.
FOREIGN EXCHANGE-In January nominal
rates for sterling exchange Were uniformly
quoted az 4.S5 for sixty days and ass for de-
rand, with actual business al recessions from
shese figures. demand. for instance averaging
about 4.s71a. In February there was a slight
advance both in nominal and actual rates actual
rates closing the month 4S1s4 a 4.S75s for demand
The market continued firm in March at no note
worthy change in rate. ApriT's market was also
strong. with demand sterling ruling from ST.
10 4sS and posted rates at 4S6@4.S6lk and
4SsieG 50 for long and short bills respectiyelv
There was a decidedly easier tendency in May.
with demand ruling from 1865 to 4S11z In
June demand sterling did not go below 4S7
while it seneTally % ruled above 4-s714. Posted
rates We're 4So@4ss- Francs were quoted at
515&G5I5Ss less lie In August dems nd