New-York tribune., 1902-12-22
MONEY AND BUSINESS.

Recovery in the stock market came almost
abruptly the preceding decline. with anl
average advance of over 50 share for the sixty
most active railway securities. Yet fundamental
conditions not materially altered. If the
decline was due TO contraction OF loans by the
banks, as was generally believed, the financial
situation has not suddenly improved to a degree
that warrants the sudden reversal of opinion In
so far as the reaction was due TO an oversold
market It may be sustained. but merely senti-
mental rallies lack solidity. To the weak minded
there might have been significance in the CO.
incidence that the week was the seventh an
niversary OF another disastrous market collapse
because of Venezuela, but this element was
practically eliminated from the stock market
by the season Of liquidation eliminating on
December 13.
In order to prevent any actual panic because
Of tight money, pool formed by lead
ing bankers whereby $5OO00,O00 was placed
in the hands of few 1t was thought that
such concerted action would be more effective
than individual aid. There was much misunder-
standing regarding this fund, although the
actual supply of cash obviously unaffected
It intended to facilitate stock specula-
ton. Rates for call loans gradually declined
from 10 per cent at the beginning of the week
TO about 5 per cent. despite the increased ac
tivity in Wall Street. Time money commanded
a commission above the legal rate for
thirty and sixty day periods. but the de-
mand was moderate. Consequently there
expansion of borrowing call, which sug
gests the probability Of higher rates later in
the month. There was less absorption into the
Sub-Treasury, while transfers to the interior
were small. and Chicago exchange New
York indicated that the tendency of funds
in this direction. The banks have met all needs
in strictly commercial channels which
been large at times and legitimate trade has
not suffered through speculation although rates
are firm, and at Providence Z per cent is
charged.
Sales of merchandise have continued very
heavy the maximum week in Christmas shop
ping being recorded at all the leading centres.
1t is now certain that all previous records of
holiday business will be surpassed this year, the
retail stores and shipping facilities being taxed
to their utmost capacity. Not only are sales
departments working many hours overtime each
day. but packing and loading for delivery are
done far into the early morning hours. Whole
salers also report enormous volume of mail
order business for supplementary shipments
which in many cases cannot be filed. Staple
lines also receiving large share of atten-
tion especially in household goods and wearing
apparel not properly considered holiday goods
while the snowfall in many sections produced
normal demand for rubbers and heavy clothing
that heretofore provided the most serious COM
plaint among dealers. Jobbng houses are quiet
rule preceding the usual inventory work but
these concerns report liberal supplement-
ary demand for reassortments. At many points
the scarcity of coal has been more distressing
than at any previous time this season, altbo,eb
the mines are producing at their maximum ana
the railroads moving it to market with al,
possible dispatch.
Farm products have declined. especially In the
speculative markets. Cotton reacted in the face
of a published statement calculated to inspire
fears of repetition of the January corner two
years ago, traders paying more attention to the
liberal movement and smaller exports. Wheat
also weakened moderately. but the sensational
event OF the week was the collapse of corn Ac
cording to the best available testimony there
had existed very large pool which was not pre-