The Montgomery advertiser., 1903-01-25
WALL STREET REVIEW DIFFICULT TO INDUCE PRICES
 TO MOVE. The Venezuelan Trouble Still Causes Traders to Hold Aloof from the Market-Pennsylvania's Weak
 ness an Unsettling Factor.


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 New York. Jan. 24.-The difficulty in ducing prices to move still confronted the trader in stock today as it has to an increased degre all through the week. The Venezuelan difficulty still has a re- pulsive influence upon trading and there was some disposition to couple the prompt signing of the Panama canal treaty with that question. Prices har- dened. however, after the opening be- cause of the announced declsfon of the Washington authorities that the Germans action in Venezuela did not present sub iect for representations by this govern meht. The weakness of Pennsylvania was the unsettling influence and led to an active selling movement which was only mOmentarily checked by the bank statement. The closing was easy and with some quotations at the lowest. The selling of Pennsylvania seemed to he due to the news of the borrowing of S40,0O0,000 by the cofnpany. The fact that this loan for six. months was not good at 1 1-2 per cent compared with per cent and liberal commission paod by. the Lake Shore for It's s20,000,0o0 for the Reading purchase was pointed at as evidence of declining tendency of money clinod to see in N rather an evidence that floating supplies of capital are lively to be engrossed by continued siarge sy ndi- cate operation rather than. to be left
 
 ate expansion by the banks in favor of . the Pennsylvania loan operation was an agreeable surprise to the traders and prompted the recovery which gave away again at the last.
 The stock market fell into a rut this week, in which the narrow and sluggish fluctuations of prices were due to the varying operations of the room traders whose day to day operations have con- stituted the whole market Current comment on the market is largely made up of the conjectures made by this class of operators of the opinions they advance which represent their hopes of an influ- ence that will cause prices to move as much as any actual information of events. The volume of dealings has progressively declined to the low level of the year. With the general public indifferent to the stock market and with no opportuni- ty therefore to distribute securities to in- vestors and with holders equally disin- clined to sell at the present level of prices or at the concessions which the attempt to sell would require, this irregu- lar fiuctuauon from day to day Is the normal condition of the '1arket. At such times professional traders on the floor or in brokers offices watch keenly the de- velopment of events and the news reports and endeavor to interpret the effect these will have on the sentiments of real holders of securities of the real in- vestment seekrs for securities and 10 an- ticipate their action. In times of active markets. they are thus enabled to realize profits by knowing be- In periods Of stagnant markets when real buyers and real sellers are both idle there is nothing for the professional trader to do but to relieve his position and close up his commitment, which he Is prone to do on very narrow movement either in his favor orr against him. The result is a market for frequent and narrow fiuctua- tions. The sufficient explanation of one m tg flaaf days was a contrary one and was found to attract no following In the present market 1t has been shown also that the weeks downward fluctuations have en- countered buying orders placed before the market either for the purpose of pro- tecting values or for purposes of accu- mutation on an expected downward range. On any advance in prices buying orders are found to be withdrawn and the mar ket is likely to meet selling orders for the purpose of realization. The rlgldity of the market is thus maintained. What ever may be the advantage from con- servatve standpoint the stability thus induced. 1t is the death of speculation. The pull moVenient, aftsr the first of the year was evidently In the hands, of the larger class of operators who demonstfat- ed to their disappointment that thsre is not sufficient public interest in stocks to offer opportunity for ther digestion and heavy operators have become Qui- | escent for the time. The basis of the in- difference of the general public to securi- 1 ties must be sought deeper and in more general causes. The direction to be final | iy taken by prices when the market emerges from its lethargy Is still mat ter of doubt and conflicting opinions. The apprehension that the country has reach ed the high tide of prosperity still ex- ists in Wall Street. The extraordinary business activity, causing active block ade Of freight movements in some di- rections, does not altogether diSpel this feeling It is offered as evidence that the limit of capacity has been reached by the railroads. while the tide of operat- ing expenses and wages continues to rise Many expressed hopes of dividend ln- feared that railroad companies will feel constrained to preserve their surplus earnings hereafter against future contin- gencies instead of disbursing them as dividends to shareholders.
 Opinions over the foreign trade outlook are also mixed. The heavy exports of grain are source of qualification and give promise of restoring last years de- ficiency in the export movement, but the rise of prices here is growing incentive to imports, as shown by the monthly sta tistics on foreign trade by the Treasury Bureau and the possibility of foreign conn., petition with lines of domestic industry | Is thus brought into view. On the other hand the power for the current of home ward movement of our securities from the hands of foreign holders is apparent v IL that the supply has approached exhaus- tion. The action of the foreign exchange | markets show that the supply of credits making by merchandise exports is not fully sufficient to pay off the maturing l indebtedness to foreigners on account of bankers borrowings for the greater pro- | motion projects of the last year or two. | The signing of the Panama Canal treaty also defined a requirement for transfer | of S40,0O0.O0O in payment of the French | Canal Companys claims. The outcome of | the foreign exchange situation, the pros pect of the coming years crops and the l working out of the money and banking | situation for the coming year are felt 10 be of vital importance for the future | The foreign exchange situation is for | immediate consideration and has been a | repressfve factor during the present week | L. S. 3s registered. the old As and the | 5s have advanced l-4 on call during the week.
 Bonds.