The Montgomery advertiser., 1903-10-11
WALL STREET REVIEW
DEMANDS FOR STOCKS Is APA. !, THETIC.
Those Seeking to Advance Prices Seem to Confine Their operat- ions to Amalgamatsd Cop per-Professionals Are
 Alone.

NEW YORK. Oct. Io.-pemand for stocks was apsthetie today and left the market vui- nerable to very light selling. Some of this was palpably professional short selling and there seemed to be a professional contest in the late dealings. The party of reaction cen tered their attack on United States Steel pre- ferred. forcing it down 2X to es. This stock sold before as low as today's price. The party favoring support in the market seemed most active in Analgamated Copper. That stock resisted the general depression and was marked up at one time l& over last night. There was some systematic buying also Of Chicago and Alton. The contest was wholly professional London helped the depression here somewhat and -scid stocks moderately. Fears are enter tained there that next weeks Stock Exchange ssstiement . may uncover sons s.nnsrrsssmenas , a somewhat conservative and reflected the state of doubt which has been oAussd by the reduce tion in Unitend States Steel dividends and the decline in profits in the iron and steel indus tries. The reports Of weekly bank clearinss show sharp contraotions as whole, compared with the corresponding week of last year. But is wholly due to shriinkage in New York. Boston and Philadelphia, the four other lead ing cities showing considerable increase and the avefrss % TOT si osner cities ~s% sa hx th. n bank statement and rallied momentarily The increase in cash was considerably larger than expected. But the abatement is so much com plicated by the merger operations of the Ma tionai Bank Of Commerce and the Western Ma tional to throw 1t out of balance. It fs inferred from the small loan change that com msrciai borrowing has kept pretty steady pace with the liquidation In the stock market. The market closed easy and quite active.
 Developments during the week have resulted in a new outpouring of securities on the mar ket and sn almost entire paralysis of demand for the stocks most largely pressed for sale The effect has been . renewal Of the feeling of over Wall Street in q period of declining prices. The liquidation has been of different character from that of the recent past, which was manifestly forced by financial necessities of the new securities formed out of recent promotion projects This week the selling Is attributed to distrust on the part Of the hold CTS over the industrial outlook and over the future earning power of shares in corporations. There has been an occasional account liquidated which seemed to be caused by the maturing Of 7 q loan on which extension could not be had, and for which the collateral therefor came up- on the market. But the prevailing topic in WaH Street has been the irritation and dis gust of shareholders over the developments re- garding the properties in which they have em- parked their money, leading them to abandon hope Of better conditions. and to throw over their holdings for what they would bring The reduction of the dividend on United States Steel from 4 per cent to a 2 per cent. basis was the first of these developments. The long downward course of this stock in the market seemed a sufficient intimation of what was to come. But the fact remains that the common expectation in speculative circles was disap- of the divedend involved . policy connected with the formation of the corporation which would mt be departed from. while funds were available for tn edistribution.
 The wisdom of this policy came In for criti- cism when the corporation announced It's bond issue and the necessity for increased working capital, which promoted the bond issue. In view of the partial failure of the bond offer ing and the market decline reported in the rate of net earnings and the heavy decrease m the unlifted orders on hand compared with last years corresponding quarterly statement, the wisdom of the present dividend reduction Is generally conceded by disinterested financial critics. But this commendation carries With It a criticism of havng entered upon dividend payments n the first place. in view of the en- iarged outlay ahead. The wisdom of the re- duction is predicted upon an admission Of the fact also that 6 declining demand for iron and steel is to be faced. The implications to be drawn from this prospect proved or so disturbing a character as to throw sentiment into depression again. Iron and steel as pa rometer of general trade conditions have high authority in Wall Street and the proportions of the reaction in that market thus reduced dread of general rade reaction Is thus aggra- vated.
 Stocks. of companies in the metal industries were most immidiately affected m sympathy especially Amalgameted Copper and the rail road equipment companies. But no part of the list escaped the influence of the depression
 The enormous market shrinkage In the steel securities and the final outcome in the dividend reduction gievs rise to disgruntled complaint of the original dividend payments as bearing on stock market exigeneies as much as on financial policy. This spirit of irritation over conditions of promotion and notation Is enormously aggravated by the disclosures coi,- tained in the testimony in regard to the United states shipbuilding hasco The tone Of much of the discussion in the nelghborhood of the Stock Exchange during the past week has been of a bitterness and scope that Wall Street heretofore has regarded as narrow and preJu- diced when coming from outside sources Heavy er-capitallsation of corporations Is one. of the least heinous offenses found In the IiAt laid at the doors of the leaders or the kFeat Imitation of the last few years. False representation of values and earning power reckless diversion of credits of institutions to promotion purposes and ecret pooling agree ments to assure the first market for the SC. ourities of insiders under manipulation of paid market managers some of the Incidents brought within the range of charges
 The result has been feeling of profound dis trust among the whole class of shareholders In new industrial securities and suspicion of mo- tive and methods In quarters which have been followed with unmlxed confidence. The force of these considerations has been sufficient to overcome any favorable factors in the situa- ton The dread of money stringency has deh- nitely passed away and growing activity Tn the market for mercantile paper mas toIoWeu' relieving any fears of a contractio uhf sup niles for regular cOmmerclai purposes. Bor- roWers who have supplied themselves with extra funds nfear of stringecy find their pre- cautions unneeded ad arc reloaning, thus re laxtnK the extra demand. and leading to freer offerings by regular lenders. The progress or the crops has been favorable and freer move ment of grain has been reflected In the traffic reports of the great railroads and the supplies in the exchange markets.
 The bond market has refected the growing ease in the money market in some reViVai or investment demand for a good grade of rail road honds United States 2s, 3s and old As declined la per cent. each from the closing bid