The Montgomery advertiser., 1902-01-05
WALL STREET REVIEW WEEKLY BANK STATEMENT A
 DISAPPOINTMENT. A Good Part of the Early Gains Were Wiped Out. After Its Appear
 ance-Some Industrials
 Show Strength.

New York, Jan. 1.-The disappointment over the weekly bank statement today made it difficult for the stock market 10 make headway against the selling to take profits. 4 good part of the gains were wiped out after the statement appeared and some of the weak stocks fell a point or more below last night. Realiz- ing was in evidence from the outset among the coalers and some others, put the heavy absorption of the United States Steel stocks in a rise in Algamated Cop per gave some tone to the market Cop per promptly relapsed and selling also met the advance in the United States Steel stocks. The rise in the copper stock was based on the reported disso- lution of an injunction against the pay ment of dividends by one of its subsidi, ary companies. A number of low priced indnstrials developed strength during the day especially the producers of railroad equipment. St. Paul advanced on Its in- creased earnings for the fourth week In December. The announcement that this < company would discontinue statements of the weekly earnings gave rise to some doubt among speculators over the rail road outlook. The bank statement show ed an increase of only 8, 45S, 800 in cash, which was less than half the amount predicted. The increase of reserve re- quirements by the large loan expansion more than offset this in the surplus item. which accordingly showed a small de- crease. Confidence in early ease of money was considerably dashed by this 0GY2lQDmSnL. there had been shipments of cash to Cleveland to meet the exigency there Considerable attention was still given to the Cleveland incident. Predictions among -s exchange authorities that exports of gold would be resumed soon. also dis turbed sentiment over the money out look. The market closed generally easy. but with some slight recoveries from the lowest. The activity and strength of stocks this week was reflected a hopeful and confident spirit over the outlook for the new year. The year end stringency of the money market has been ignored fin the confidence that few days would see a relaxation of money rates. with a return to the channels of the money market of vast resources through the unprecedented disbursements on account of interest and dividends and of the cur rency which has been in active circula- fion to accommodate the needs Of the great holiday trade, the volume of which has been an index Of the great prosper ity which the country enjoys: The con- vjction has long been prevalent that the January relaxation of money rates would bring rise in stocks and the buying or last week and this has represented m effort to anticipate the January rise. There has been little evidence of what Wall. Street calls outside influence in the market, meaning the rank and file of speculators the country over. The op- erations bear the stamp of professional traders of large means joined in Speca- lative syndicates and of bankers and
 
 seems to be based on general considera- tions of confidence in the stability of values. the sustained' prosperity of the country and prospective willingness of capital to invest in securities at their present high level of valuations. The practical consummation of the conVer- Sion of Northern Pacific preferred stock into common stock, which was an essen- tial to the plan of organization of the Northe-- Securities Company has been an element of strength for stocks. The adjustment of hostilities which seem to be still latent in the transcontinental railroad situation was to be dependent on the success of this plan and its prog ress relieves anxiety caused by the evi- dences of obstruction to it. It is hoped also that the way is thus opened for a resumption of some of the important projects for further combinations which were interrupted by the shock of the Northern Pacific corner last May The lookup of capital which resulted from that struggle of financial giants has been admittedly an enharra ssment since. Nov that a prospect is offered of release of part of that capital spectators are hop ing to see a renewal of the stimulating effect of one and another new combina- tion and the strong and sustaining efforts of powerful combinations or capital Tn the stock market to further the Notation of new securities which may be the pro- duct of new corporations. The special strength of anthracite carriers during the week is the reflection of the impression
 
 of plans for merger. On the prospect for the coming year in the stock market opinion in tho financial world is by no means unanimous. The present high level of prices is a subject of some mis- giving even among the bulls. It is point cd out that not few departments of the market recovered after the May panic in the higher prices than before. notwithstanding the excess of specula- tion which resulted in that upset to the market. There are many stocks whose prices were the highest on record at the end of the year. Speculation which made those prices was counting upon Contin- ued increase in the earning power rather than upon mere maintenance of that power. The decrease in earnings of rail- roads compared with the corresponding period of last year shown by the lo test returns revives the question whether the railroad world Is to escape the effect of a shortage in the corn crop which is es- tinnated at a valuation as high as S400 = 100000. Capital issues on the various rail road mergers and purchases has been confessedly at a rate which requires a continuance of the recent level of pros perity to make adeduate return upon new securities as Investments. High prices have been paid in all cases for properties included in the mergers. Not only Is this true in the case of railroad proper ties. but presumably of industrial prop critics. although public information in the latter case Is much less. The Amalga- mated Copper incident and the develop ulents in that trade are felt to be preg- nant with suggestion of possible results to flow from a decline in demand for products of other industries capitalize l on basis of heavy consumption at high prices The course of the countrys for eign trade towards decrease of manufac- tured exports and increase of imports is suggestive of lessening demand and in-