The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-01-05
WEEK in WALL STREET
GENERAL IMPROVEMENT IN THE
SPECULATIVE SENTIMENT.
Publication of Saturdays Bank state
ment Causes Marked Betterment-
Disquietfng 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 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 s69l5oO.
but expenses increased $l,363, 100, so that
net earnings decreased s67l. 900; on the lines
west of Pitts5urg and Erie there was re-
ported an increase in gross earnings OF
$4,000, with growth of s5OS,2OO in operat-
ing expenses. resulting in decrease In net
earnings of sH4.6OO 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 So, 644,650 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-
sources in excess of all previous records,
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 $S.435,0OO, which is almost s3.OOO.OoO
In excess OF the largest preliminary esti-
mates. The redepost 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
ments made on the company Is the State
Railroad Commission for increased equip
ment.
There was slight tremor Of uneasiness
manifest In Mondays stock market when
the money rate rose to Is per cent. but
ndent, and the vaporS which had been
hanging over the street seemed to be dissi-
pated The year closed with fairly exul-
tant spirit among operators. The dominant
influence In causing this feeling was the
sense OF danger escaped. The end of the
year was looked forward to with keen
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 s50,00O,O0O to the call loan market
IN case OF urgent need A special cause
of disbursement was the small impress
sion made on the loan account of the
banks by the forced liquidation on the
stock market. Holders of stocks had
know -
payments of loans had been effected to
the banks, while the weekly statements of
the New York Clearing House Association
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
ing the period OF drastic liquidations on
the Stock Exchange Many important
price of the year during the first two
weeks Of September, and since that time
have fallen to the lowest of the year. Yet
comparison of last weeks bank state
ment with that of Sept Is showed that the
| clearing house banks had contracted their
| loans in that time less than SIS, 900. 1t
| from the stock market were used to a 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 two.
Another disquieting feature was the I'M
| expected call on several bond underwriting
| syndicates for subscriptions which ii was
believed would be unnecessary. This evil
dence of accumulation of unmarketed
bonds left I'm the hands of syndicates was
| supplemented by reports of the dissolu-
| ton of some syndicates and the distribu-
| ton of their holdings of bonds among the
members, to be held individually or sold
Of IN ha arlyo De-
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
reinsurance for this element. A consider
| 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 in 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
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 or 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 i'm 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-
| cfpal 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 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 i'm sympathy
with stocks, but the principal activity has
been in the speculative contingent payine
| issues. United States twos. old tours anf
| new tours. coupon, advanced Il per cent
| as compared with last weeks close.
Following are Saturdays share sales ant
the recorded price changes:
High Low CLOSING
| RAILROADS. sales. est. est Bid
| Atchison .................. IL. 100 S4% S3X s4il
| Atchison pref 1,400 101 1OOIa 1907,
| Baltimore & Ohio......... 10. 400 1o1 100 IOO7