The Montgomery advertiser., 1903-08-16
WALL STREET REVIEW
PROFESSIONALLY LEFT IN CON-
 TRoL or MARKET.
Bank Statement Not as Favorable as Had Been Expected, the Loss of Cash Proving
 Surprise.

iessionai trading an important proportion of the city for an end-of- week holiday. The pro fessionals were inclined to work for a reac- tion. owing to the rdapidity of the weeks re- covery In the market which might be assumed to have built up a vulnerable account on the long side of the market London evidently took the same view of the situation and had made snroads upon last nights prices here before operations quickly carried prices down to the London level. There was also free profit talk ing in Amelgamated Copper attracted by yes terday's late spurt. After the London selling was completed there was a pause and then . vigorous recovery, which retrieved practically the losses. This was apparently in anticipa- tion of very favorable bank statement. The statement dld not meet this expectation. The loan contraction. in view of the weeks aug mented buying of securities. might have been regarded as pleasant surprise but the sem tfulent of the market seemed more influenced by the loss of cash, where q considerable gain had been hoped for. The market sold off again to about the lowest with net losses of point or more for some of the principal active stocks. The downward course of the stock market terminated for the present in the plunge of last Saturday and prices have re- bounded with some violence this week. It was not without the exercise of some forcibie meas ures in the way of support for the market by large buying orders and by . relaxation of the pressure for liquidation of loans that the de- ingathering of influential men in the financial world, recalled from various quarters by Satur- days events and it Is commonly supposed that the results of Monday were the result to extent of concerted measures among bankers and capitalists. The mere fact of the arrest of the decline had the effect of tightening the selling pressure upon the market caused by the destruction of margins and the constant shrink age of collateral. There some further sell ing of collateral out of loans early in the weelsA causing a continuance of some of last weeks rumors of financial difficulties over hanging the market, but the absorption of stocks was of much more confident and de- termined character than for long time. Al. ter a period of some hesitation the market turned strongly upwards. It was natural that a turn in the market after so prolonged a fall in the price should leave very large short
 interest. There was besides a large invest
 ment demand waiting for the market to turn
 to supply them with reinsurance to come in and take stocks. It has been cohdenty held that the necessftous selling for some time
 without regard to values of stocks was carry ing the level of prices lower than was jussi- fled by any stringency in the money market
 But long money necessities promised to force continuance of the selling of stocks
 buyers were determined to keep out of the mar ket on the chance of getting stocks cheaper by waiting. These conditions were bound to cause a violent upward reaction at some time
 without necessarily waiting for a change in the conditions which have caused the great shrinkage in prices for the simple fact of the liquidation accomplishing the needed relief and thus putting an end to forced selling. It was found also when the market turned that there had already been an absorption of stocks on a scale down by capitalists and corporation and foreign buyers This had the effect of lessen ing the supply of stocks in the market when
 the bS'ying demand developed. Buying on scale oown satisfied itself with acceptanees of offeriniVs and affords no check to fall in prices. The buying for foreign account which has been admittedly large. hut which is va riousiy estimated has had the effect of weak ening foreign exchange and bringing it within measurable distance of the gold import point
 Besides these wholly normal factors of an upward tendency in the reaction there has he4u aoFfaa FeUardNd improving the outlook. The fall in foreign exchange calls at- tention to one of thsse. Liquidation of very large foreign indebtedness has been an im- portant element in the weakness of stocks as indicated by the high level maintained by do-
 mestic bank loans by reborrowing for pay
 ment of foreign loans. Last year demands Tor
 payments of foreign loans came in the fall crisis of the money market when the greatest demands were being made upon the reserve centers for funds to move the crops There Is every promise that the movment of crops this year will bring the normal inward move ment of gold from abroad to help out purely
 commercial needs which had been anticipated last year by these large foreign borrowings for
 speculative purposes with such a disastrous sequence. The fall in exchange and the hard ening of London discounts clearly foreshadow such a result. sentiment of growing conf dence in the making of good staple crops crys- talized with the Agricultural Departments re- port for July. There is a reservation regard
 ing the corn crop on account of It's lateness.
 Neither Is entire confidence felt fin the sta-
 bility of the iron trade as shown by the sen-
 stiveness to report of the shutting down of some of the departments of the United States Steel Corporation said to be for customary re-
 pairs. Of more immediate consequence in Wall Street was the increase in the dividend rate on Canadian Pacific from to 6-pont basis and the represeptation of St. Louis and San Francisco interests in the Seaboerd Ar Line directory. The latter particularly was of a stimulating effect upon the market as in- dicating the possibility of new developments in the community of interests as an outcome Of the extensive sale of shares in various railroad properties.
 Bonds have recovered in sympathy with stocks The new 3's coupon declineds per cent on call.