New-York tribune., 1902-12-15
THE FINANCIAL MARKETS
WEEK OF HE4VY LIQUIDATTON IN SECURITIES
Coup of Loans Pressure and Speculative Selling Result IN Sharp
Declines IN InUestuue Quoahons.
THE WEEK IN WALL STREET.

E7xtr
marked the course of stock market trading las
week AT times prices were fairly demoralized
The condition Of the market. however, was no
due TO factors affecting the actual worth o
securities but To influences confined entirely t.
the precincts Of the financial community. Cal
money rates advanced to the highest figure o
the month. while time loans were in most cases
made at 6 per cent, plus a commission Loans
were freely called throughout the week, and az
a consequence many holders Of stocks carried
on borrowed money were forced TO hquldatt
their accounts at heavy financial loss Bear
traders naturally were active, and a large part
OF the weeks selling represented operations foI
the short account more than genuine liquida-
tion Many of the speculative pools were COM
relIed TO throw over the last of their holdings
sales of this character practically being forced
by warnings from the banks that financial aid
could no longer be given. Declines ran from
8 tc points in the more active issues.
In the greater number of stocks prices have
reached a level which doubtless will soon appeal
TO careful buyers. Indeed. at the close of the
week evidence of buying for the account of i'm
portapt market interests was reflected in the
course Of business. Orders were executed at a
low level on Friday by brokers who generally
operate for the strongest capitalists in the
country. Wall Street opinion is divided over
the question of the immediate future Of the
market but in most circles it is generally be-
1jeved that in the new year All active upward
movement will be started Market movements
sn the last ten weeks have. as a rule, been in
the direction lower prices. with the result that
securities have passed from weak 70 strong
hands while the quotation level has reached a
,oipt that ought to attract active demand
for attractive stocks and bonds. While there
may be further liquidation before the end OF
the year. 1t seems extremely Improbable that
important liquidation will develop. In the
greater number of cases securities are selling
many points under their actual worth espe-
cially in the case of the so-caled medium and
low priced issues. such the United States
Steel stocks, Denver and Rio Grande, the Wa
hash issues. Missouri Pacific. Union Pacific and
many of the sound industrial shares. United
States Steel common, for instance. is now sell
sng at a basis that returns to the investor over
13 per cent while the preferred at its present
price Yields over S per cent. There has been
large amount of loose talk regarding the posi-
ton OF the United States Steel Corporation. but
the only trustworthy information regarding the
company's affairs comes from the officers Of
the concern, indicating that there is no let up
in the demand for iron and steel and no pros
pect OF the development of adverse conditions in
the trade for many months TO come United
States Steel common was bought in the week
by strong financial interests and sold by purely
speculative operators. Efforts to depress the
price OF steel issues were accompanied by re-
ports that the dividend on the common stock
would be passed An officer OF the company
characterized this report utter rot
According the reports received by the COM
rnercial agencies in the week, Wall Street is the
only blue spot in the whole country. Wall Street
has been so blue that it has accepted the action
of England and Germany against Venezuela
an Indication that the United States will be-
come involved in trouble with the first two
named countries. owing to the provisions OF
the Monroe Doctrine. There are times when
people in Wall Street do not think Of or remen-
ber things outside OF the four walls of the
Stock Exchange IF Wall Street would study
the Monroe Doctrine and also read the state
1nents from Washington regarding the attitude
OF the United States in the present dispute it
would readily see that the chances Of this coun-
try becoming mixed up in the Venezuelan troU-
ble are exceedingly remote. 1t is not surprising,
however. that of the smaller people in the
Street become frightened, when In an interview
q leading railway capitalist announces his fear
that the United States will be drawn into a
war with England and Germany over the Ven-
ezuelan situation. Mr.. Hill. of the Great North
port, that the country is at the end Of its pros
perity, but his view of the situation is not
borne out by the official reports from trade GEN.
tres. There is absolutely no indication Of trade
recession. Railroad earnings are heavy. bank
clearings are large, and exports from this coun-
try are increasing. There is weakness in
general conditions. Failures light. 1t is in
teresting TO note that the Generalization Of Wall
Street has not been accompanied by evidence
-le
mission houses and banks. This fact alone is
of the situation.
The most important incident Of the week in
the money market was development in domes- |
tic exchange conditions that shaped the move |
ment Of money in favor of this centre If 1t had
not been for the large Withdrawals from the |
hanks by the Sub-Treasury there would have |
been a large increase In cash, owing to heavy |
receipts of currency from the interior. The re- |
turn flow OF money has been later than usual |
this year but it is believed that for several /
weeks 10 come a movement on interior opera |
tions will bring supply of money TO New
York large enough to offset Treasury absorp- |
lions and possible gold shipments. Preparations |
for the January interest and dividend disburse-
rnents may cause further furry in call money |
rates but the chances that last weeks dis |
turbance in money circles marked the worst
period of the month.
There is nothing in the general situation that
should occasion alarm. and there is sense in
sacrificing we'll protected securities at current
prices. The present declining tendency is not
development CT a permanent character Money
market conditions will not continue unfavorable
FOR extended period. and this country will |
not go to war because Of the attempt of foreign |
powers TO collect money due them in South
America Call money went high II per
cent in last weeks market averaging 615 per