The Montgomery advertiser., 1903-08-02
WALL STREET REVIEW
MOVEMENT OF PRICES NARROW
 AND UNINTEREsTING.
Selling of Rock Island Induced by Criticism of the Proposed Re- funding Bond Issue--Mar-
 ket for the Week.

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 NEW YORK. Aug. I.-pealIngs in stocks were so small and the tone of the trading was 70 indifferent today that little significance could be attached to the movement of prices. wnlcn @ were very narrow and unineresting ex- cept in few individual stocks There was selling of Rock Island induced by the criti- cism Of the proposed refunding bond issue Feopies Gas rose more than point on the aeciaartion of the regular quarterly dividend. There was gain of point in Mexican Gen. 1 tral on rumors of the taking over of a large oiock by private agreement. North American had the benefit of the purchase by prominent banking house of the holdings of one of the hrms which failed last week The market was almost wholly made up such scattered nove- ments The decision in favor of the North ern Securities Company of the suit brought against it by the State of Minnesota caused 4-point jump in that stock on the curb but the response in the general market was barely percepubie The increase in loans reported by the bank statement was of more effct, as much had been made by the speculative element of supposd heavy contraction to these shown. IS evident that the repayment of the Penn sylvania notes which was expected to reduce yhe loan account of the banks had been made In part to the trust companies The call Tor payment of s5, 900 900 on the International Mercantiie Marine Underwriting and of S3. 900. 900 on the Louisville and Nashville bond underwriting had to be provided for Bankers aiso report that there Is growing up large seasonable demand for mercantile credits It Is intimated furthermore that there has been very large liquidation of loans to trust com panies during the week. The weeks stock market liquidation has admittedly been very heavy and, the abocye reasons are advanced to explain why the liquidation is not reflected Tn the loan item of the associated banks. It must be remembered also that liquidation that involves buying as we'll selling and some of the banks have been taking up stocks for their customers at what they con- sider advantageous prices The selling on the bank statement was not pursued and the mar ket Gteadied and closed iiffles9
 Prices of stocks have recovered somewhat in this weeks market and sentiment has i'm steady at times on the recovery and scattered liquidation was still In evidence here and there In the specialties. There were sufficint doubts remaining also over the general situation and the outlook in the country to restrain the buy ing Of stocks on any considerable advance. But the forced selling of stocks hypothecated in loans has been much less in evidence and this fact has allowed prices to rise somewhat on the demand from shorts to cover and on large investment demand There has been apprehension of the usual consequence to fol- low such a period of drastic liquidation, such | as the renewed liquidation any advance of accounts allowed to carry over the period of acute weakness fin the market In the hope of favorable opportunity to market them. There is some dread also of the reactionary effect of the long fall in securities values upon the general business and industrial situation. The fall In values has resulted in an enormous shrinkage in the available basis for credits and the possibility Is canvassed of a contrac- tion of credits in commercial lines as q later sequence. Vice President A. Barton Hepburn of the Chase National Bank. in an interview, which has commanded widespread attention and comment in Wall Street. uttered distinct warning of the danger of over-extension of credits at this time fin commercial lines as well as in promotion projects. The note of conservatism Is still dominant in the financial world and the favorable reports received of general business conditions from all quarters have not been sufficient to change this feel ing. The announcement of the purchase of the control of the Evansville and Terre Haute for the Rock Island system served to revive some talk of combinations and absorptions of railroad systems. There has been a theory amongst certain class of stock market op- orators that the present fall in stock prices is the result of q concerted campaign by a powerful financial party with the purpose of buying in various railroad properties even in- cluring New York Central and Pennsylvania on advantageous terms. Persons with this theory have given ready credence to all sorts of rumors of passing of control. The argument seems plausible that the ''corhmunlty of n- terest' policy might be perfected to much better advantage at the present level of prices for securities than at the extravagant valua- tions at which the great mergers carried | through But this contention leaves out of account the great facility with which the new stock acquired for the mergers were disposed of to an eagerly buying public. There is little announcement for the underwriting by syndi- cates of new securities in the present condi- tions of the stock and money markets. The money market has grown appreciably easier during the week and rates for six months loans have been shaded below 6 per cent. The mar ket at those rates has been largely nominal. however. and lenders have shown little anxiety to place loans at the prevailing rates while the demand for funds has grown languid. Loans made on stocks at their present prices call for smaller allowance for shrinkage and are more secure than loans on the inflated basis of last year. The case of sctocks which are discredited by fears of bankruptcy Is diff ferent and is the source of weakness in other stocks sold to protect them. The working out of the Autumn money requirements Is the problem of first importance in the situation, as 1t has been for many months. It has been assumed lately that the probable delay in ac- tion by the Colombian Government on the Panama Canal treaty would throw any demand upon the exchange market for payment over into next year.
 News in progress in the consideration of the treaty has been watched with interest as 1t Is believed that the Treasury Department will feel itself hampered in operating for the re- lief of the money market in case the Panama Canal requirement shall appear imminent. News of the crops is followed from day to day and doubts over the good condition of corn and Spring wheat had some depressing effect upon grain carriers. The cotton corner Is a detriment to stocks The formation of the steel billet pool helped the iron and steel stocks, but the lack of stability in other finished lines in that trade was an offset Railroad operating officials reported high level of traffic, es- pectRlly in general merchandise and confident predictions for its continuance.
 The bond market showed some breadth and the usual active issues moved irreguarly in sympathy with stocks. Amongst dormant in vestment issues with preceding transactions dating some time back transfers were effected only at wide concessions. United States 3's have declined l and the old As F per cent. on call during the week