The Montgomery advertiser., 1903-11-15
WALL STREET REVIEW
TRADING IS LIsTLEss AND MAR
 ROW.
Operation on Too Small a Scale to Offer Anything of a Represen- tative Character Few
 Points of strength,

NEW YORK, Nov i4.-Trading In today's stock market iistless and narrow. Opera tions were on toe small a scale to offer any thing of representative character. There were few points of strength, Including Chi cago and Alton, on revival of rumors of it's possible absorption a connecting link in a larger system. Southern Railway advanced in response to rather vague assertions that the Seaboard Air Line was in way to be brought into the Southern community of interest. The upward movement in Manhattan continued on the score of the increase of earning power through electric operations as revealed by the last statement One or two minor stocks rose without explanation. The market as whole failed to show a continuation of yesterdays movement to cover shorts and prices drifted rather aimlessly. The bank statement proved decidedly more favorable than the forecast had indicated. but nevertheless its publication followed by a brisk selling movement which centered upon Pennsylvania, costing that stock the greater part of yesterdays gain. Reading and Amalgamated Copper also lost more than a point and the whole list receded to below last night. The decline in the cash reserves of the banks proved to be only S2, oi3,20o. Yesterdays estimates indicated an outgo for the week of S4, GOO, 900 without al- lowance for yesterdays arrival of foreign gold to the amount of nearly S 900, 900. The de- posit Abilities of the banks have been reduced by Si4.629. 500, principally through the loan contraction of sIo. .24o, 500 The reserve re- quirement Is thus diminished to the amount of S3, 357, 400, leaving an increase in the sur plus of S744. 200. With the falling off of the
 
 has occurred and the supply of foreign gold ahoat for this port the money market pros pect seems to offer no ocasion for uneasiness. without counting the likelihood of consider able further movement of gold this way. The market closed dull and heavy.
 Enormous selling of the United States Steel securities followed by selling of a similar char acter of Pennsylvania has disturbed the stock market during the week. The sympathetic ef feet of the weakness of these stocks was re- sisted for a time and the general market a Of hut ultimately succumbed and yielded to lower level. The source and the motive of the selling have been subjects of wide conjecture. much of which appeared in the form of an assertion of facts that could not be verified. The diligent &C., tivity of large and well organized bear party accounted for some of the rumors set afoat and a large part of the dealings in the most prominent stocks was evidently for profess sional account in the form of trading in and out for short turns the movement without affecting the actual holdings of stock perma- nently. But the success attending these pro- fessional operations and the steady downward course of prices pointed to process of actual liquidation and of impelling causes for 1t which undermined speculative confidence and weak ened the whole market. The course of the United States Steel stocks had for the most ob- vious explanation the depressed condition of edged. The professional leaders of the cam paign against these securities apparently fixed for a nobteetive the price of 50 for the pre- ferred and 10 for the common and those points were touched by both stocks and overrun by A for the preferred. The large covering of short contracts then followed and rallied both stocks The covering movement encour- aged by the formal announcement of the de- cision to cut prices no further than had been done in contradiction to numerous rumors in persistent circulation. But sentiment over the further developments fin the important index trade is still much unsettled and doubtful. The results have indicated the futilty of the United States Steel Corporation as a devise for maintaining stability in the trade as had been hoped for 1t at It's formation The strant which the corporation had been able to exercise upon the rise in prices during the period of active demand was proved intellectual to conserve that demand and the present cuts in prices point to the necessity of old meth ods to stimulate demand afresh. The result has been to arouse fears that former prece- dents of interval of extreme depression in the trade must be faced. Greater confidence Is now felt in the power to restrict production and prevent the unprohtable accumulation of stocks. But the effect of this process upon earning power and dividend payments is dreaded. Account must also be taken of the effect of the operations of the preferred stock conversion syndicate. It is made occasion for criticism that while this syndicate Is under contract with the corporation at agreed compensation of per cent. the par value of preferred stock converted, the heavy de- cline in prices of the corporation's preferred stock is made by force of circumstances to in crease the profits on the syndlcate's opera tions. On Tuesday of this week, when United States Steel preferred touched 49&, the low price for the second mortgage bonds was 65.
 
 on the conversion of preferred stock into bonds besides the pc rcent commission to the syn dicate. The syndicate was a large buyer of the preferred stock Tuesday and this helped to rally the price. No authoritative informa- ton can be had as to the syndicate operations remaining to complete the conversion of the available stock The depression in the iron and steel trade had a direct bearing on the movement In Pennsylvania owing to the large tonnage of iron and steel products carried by that road. The falling off in the coal trade " mt hIfnnaipOlIq VVaa al leo offered factor in Pennsylvania's weak ness. But the principal cause of the selling of this stock was believed to be the large expanson in the capital of the system which is in progress The increase in the capital stock of the company itself of S75, 900, 900 (par value )earlier in the year has been fol- lowed in the last few weeks by the issue of upwards of $50, 900, 900 of bonds and stocks by other companies of the system. The re- auirements for fixed charges and maintenance of present dividend rates thus comes into consideration. The proposed outlay of large sums of this capital for doing away with grade crossings and for terminals is the subject of estimates as to the increased earning power of such Improvements It Is probable also that a part of the liquidation in the company stock is to provide resources for taking up the new bond issues. It is intimated that large foreign subscriptions have been made to the Jew bonds and foreign selling of Pennsylvania stock during the past week has been reported on a large scao.
 The extreme weakness of foreign exchange is attributed in part to the foreign subscriptions to the issues and to offerings against bills on cotton exports which have forced the change rates down to the gold import point in spite of measures by foreign bankers tc protect their gold supply. The gold movement is expected to reach considerable proportions and relief from the interior demands upon New York for currency thus felt to be as- sured.
 The recent notable absorption in the bond market has been halted. but prices have not yielded materially. United States 2s declined ss and the 3s and old As < per cent. below the closing bid of last week.