The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-23
FINANCIAL AND COMMERCIAL.
THURSDAY. Oct. %

The dominant feature of the stock mar
ket to-day was the demand for the invest
ment issues. Evidences Of Il growing
interest in securities of this grade have
not been wanting of late ard have been
duly emphasized in this column. But
to-day the dealings in bonds quite over
Swallowed operations in the stock market
proper. All tho established railway bonds
were dealt in in good volume and at adj
vancing prices, and. indeed, the prices
of these bonds have already risen so that
the choice of bargains among them is by
no means what it was even two weeks
since. There is natural order in opera
tions of this kind which is almost invariably
followed. The demand converges, at first,
on issues Of the very best character, first
mortgage bonds of the well known railway
lines yielding only a small return, but
furnishing the very highest security, whose
prices under almost all conditions fluCtu-
ate but little. 1t is obvious that very
small advance, comparatively. in the
prices of bonds of this kind brings them
to a point where their interest yield be-
comes sensibly diminished and where the
prospective investor is inclined to turn
from them to consideration of bonds which
although not quite so well secured, are
still thoroughly safe and afford a greater
interest return. In time the supply of
good bonds at suitable prices becomes
exhausted and the buying spreads to pre-
ferred stocks, and 80 through the entire
security list. Whether the investment of
capital will proceed steadily along this
path in the coming months cannot, of
course, be said to be settled question.
II has, however, started on the journey
after its accustomed fashion, and in the
past It's footsteps have rarely wavered
from the beaten way.
The combined strength and dulness OF
the stock market are, too, just what would
naturally be expected under these circum-
stances. Bearish operators have discov-
cred that there is no further liquidation by
the general public upon the receipt of I'M
favorable news, fact which usually indi-
Gates that these unfavorable developments
were long ago foreseen and duly prepared
for. Hence, while "bull market" is by
no means in order yet, and while any at
tempt Of spectators to inaugurate such an
affair wouldundoubtedy meet with disaster,
attempts to depress them and in their own
good time may be expected to display the
effects Of the general market convalescence.
It seems to be clear that very sharp line
Is now being drawn by all careful students
and dispassionate observers of financial
affairs between such events as the collapse
Of overboomed local enterprises in various
cities, dragging down with them trust
companies and other money lending insti-
tutions which have advanced funds upon
forms Of security for which there is little
market, and the general business life of
the whole country, especially that in the
Western and Southwestern agricultural Sec
tons. 1t would be Very singular if we had
seen the last Of suspensions, temporary or
otherwise, Of institutions Of this character
because Of reasons like the foregoing. The
important point for investors and specu-
lators alike to remember ia that such dis
asters as these-many of them of only
small Importance at best--are not of such a
character as to involve sales OF securities
In Wall Street. While OF course, they have a
perceptibly greater bearing upon the gem
eral situation than the bursting of such
incorporation bubbles in the industrial
world as prevailed so notably in 1899. the
two phenomena are really kth and kin, and
the wealth and prosperity Of the country
are such that far less harm to the business
life Of the country. as whole, will be done
by them than many people might suppose.
Prices Of stocks to-day closed very ir-
regularly, most Of the active issues, how
ever, showing small advances. Among
the railroad issues the Rock Island shares
were especially strong, while In the indus
trial list sharp break in Republic Iron
and Steel preferred followed the announce
uent that a. number of the employees Of the
Republic Iron and Steel Company In Min
nesota had been laid of. The decision of
a local court In Montana awarding posses
sion Of the Minnie Healy mine to the Anal
gamated Copper Company's chief antag-
onist, and restraining the Boston and Mon
tana company from paying any dividends
to the Amalgamated Company, but re-
fusing to put the Boston and Montana
company In the hands Of receiver, was
really more favorable to the Amalgamated
company than had been expected Lit
igation over these matters, Is Of course
merely in its preliminary stage and must
pass through the higher courts before a
final adjustment Is reached. AS the Anal
gamated company has not been IN receipt
of the Boston and Montana dividends for
some time. the preliminary decision to-day
does not change the status of affairs in the
least. The decision Of the First National
Bank Of Allegheny. Pa, to go into voluntary
liquidation, as n result Of the suspension
Of the Federal National Bank of Pittsburg,
with which it was allied, was considered
as Of little importance in Wall Street, be-
cause the solvent condition Of the bank was
perfectly realized. The one other impor-
tant new development of the day was
the declaration of an extra dividend of
1-2 of per cent. on the stock Of the North
Pacific Railway. A distribution of per
cent. will thus be made upon the stock Of
the company during the current year.