The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-01-04
WEEK IN WALL STREET
GENERAL IMPROVEMENT IN THE
SPECULATIVE SENTIMENT.
Of Saturdays Bank State
ment Causes Marked Betterment-
Disquiefing Features.

NEW YORK. Jan. 3.-Speculative senti-
ment underwent several rather abrupt
transitions to-day. Trading apparently
was in the hands of professional operators
almost entirely. The first distinct move
ment in the market after a period of list
less fluctuations followed the publication
Of the November earnings of the Penn
sylvania Railroad. The rate at which the
rise In operating expenses in this repre-
sentative railroad system was seen to out
strip the gains in gross earnings served TO
enforce doubts caused by a similar ten
dency which has become general through
out the railroad world. The Pennsylvania
lines directly operated showed an increase
in gross earnings for November of $691 $780,
but expenses increased $685. 100, so that
net earnings decreased s671, 600; on the lines
west of Pittsburg and Erie there was re-
ported an increase in gross earnings of
$4,000, with growth of sos, 200 in operat-
ing expenses, resulting in decrease in net
earnings of si14,6o0. The whole railroad
list weakened sharply under the influence
of this showing. Prices in some important
stocks receded to a point or more below
last night
There was an animated recovery on the
appearance of the bank statement with its
unexpected recuperation of s., GA, $50 in the
surplus reserves of the banks Such
showing is almost unprecedented for the
first week in January. That the banks
Should have been able to get through the
January settlement, which required re-
with merely nominal increase in loans, was
In itself pleasant surprise to those who
had felt nervous about the money situation.
In addition the gain in cash for the week
reached IS, 1876, 600, which is almost S3,OOOOOO
in excess Of the. largest preliminary esti-
mates. The redeposit of cash by the retail
shops, making up the proceeds of Christ
mas trade. is the attributed cause of this
showing. Amalgamated Copper and United
States Steel were notably firm throughout.
Manhattan was weakened by the require
Railroad Commission for increased equip
ment.
There was a slight tremor of uneasiness
manifest in Mondays stock market when
the money rate rose to 10 per cent, but
after that the tone became strong and con-
fdent, and the vapors which had been
nahging over the street seemed to be diss1-
tant spirit among operators. The dominant
influence in causing this feeling was the
sense of danger escaped. The end Of the
anxiety for several months and it was not
until this week that assurance became
strong that the preparations for the emer-
/ gency had been adequate and successful,
although the fears of a money crisis had
been much relieved by the announcement
of the formation of the bankers pool to
supply $5O,OOO,OOO to the call loan market
in case of urgent need A special cause
of encouragement was the small impress
sion made on the loan account of the
banks by the forced liquidation on the
Qf of Us had
ample reason to know that enormous re-
payments of loans had been effected to
the banks; while the weekly statements. of
showed no corresponding reduction of
loans. The last statement of condition of
national banks, issued by the controller of
| the currency, showed that loans actually
| had been increasing over the country dur
| ing the period of drastic liquidations on
| the Stock Exchange Many important
stocks in the market touched the highest
price Of the year during the first two
! weeks of September and since that time
| have fallen to the lowest Of the year. Yet
ment with that of Sept. 1S showed that the
| clearing house banks had contracted their
| loans in that time less than s25. 10000. 1t
| from the stock market were used to very
| large extent for the payment of foreign
loans maturing. Authorities here and
| abroad agree that there has been a reduc-
ton of bankers Indebtedness to Europe to
! the extent of tens of millions of dollars
| in the last few months. The repayment of
| these loans apparently has resulted in
greater ease In securing accommodation
| abroad during the last week or two.
| Another disquieting feature was the I'M
expected call on several bond underwriting
| syndicates for subscriptions which it was
| believed would be unnecessary. This evil
dence of accumulation of unmarketed
bonds left in the hands of syndicates was
| supplemented by reports of the disSolu-
i ton of some syndicates and the distribu-
ton of their holdings Of bonds among the
members to be held individually or sold
| at a loss in the open market But the con-
viction grew during this week that neces-
sary liquidation of this character had been
accomplished, and the preparation for the
! year-end requirements met
There was some large buying OF stocks
| by that portion of the speculative COM
munity which has maintained that tight
| for depression of securities. Confidence that
normal relaxation of money conditions
| will follow in January serves as additional
| able short interest which had been awaiting
| a money squeeze to cover, also bought urg-
| emily. There has been evident, besides, an
| improved sentiment on the part of the other
| speculative element ia the securities mar
ket, which has entertained misgivings that
the country had reached the elimination of
| the wave of prosperity, and that long peri
| cd of reaction is to be faced. The present
i high range of prices, the advancing tend
| ency of operating expenses, the evidences
! of unrest on the part of labor and the de-
| Ginning tendency of net earnings of railroads
| rejecting in current reports have formed
the basis of the reasoning of this party.
The rises in the prices of copper and Of pc
| troleum were cited as against the conten-
| ton that the rise in prices of commodities
has eliminated. More confidence was pro-
fessed also that the advances in freight
rates to go into effect with the new year
| will be effective In recuperating the net
earnings Of railroads. How far this re-
vision of sentiment extended beyond the
professional operators, who were the prin-
cipal buyers this week, will be demonstrated
| when the professionals come to. market
| their new holdings and take profits. The
problem of the extent of the suspended
| syndicate operations and the volume OF
their holdings still awaiting a market is
| another item for the future to disclose. How
far foreign obligations that have been de-
| ferred but not yet discharged will affect
the future market for foreign exchange is
yet undetermined.
Bonds have shown strength in sympathy
with stocks, but the principal activity las
been in the speculative contingent paying
issues. United States twos. old tours and
new tours, coupon, advanced "A per cent
as compared with last weeks close.
Following are Saturdays share sales ant
the recorded price changes:
High Low CLOSING