New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-17
THE WEEKS OPERATIONS IN STOCKS

The feeling in Wall Street mas undergone a
marvellous change during the last week. Hope
fulness and cheerfulness have replaced the de-
spondency which for many months has pre-
vailed. and il is now practically an assured fact
mat the painful strain Of the long decline is
oyer There had to be an end some time to the
ebbing Of values ana on Monday the market
gave its first definite eign that the turn had
come. Heavy buying and confident buying by
powerful interests set in. and the bears, whose
commitments on the short side have been enor-
nous. rushed 10 cover Their purchases natu-
rally aided the advance the substantial appear
snee of which brought into the market buying
orders from host of investors, small and large.
who had long stood aloof. The short interest is
said TO be still very large, although reduced day
by day. as the market has kept going up and
losses on the short side have been growing more
serious-an advance which profit taking a
heavy scale has not checked
Perhaps the most potent influence in bringing
about the Improvement in sentiment was the
announcement that control Of the Seaboard Air
Line system had been acquired in the interest of
the Rock Island Frisco party. mainly for the
reason that tie operation meant the financial
salvation Of certain important interests whose
troubles. widely known had been darkly over
hanging the market, and whose rescue CORE
improbable that the list Of failures in 1908 would
be enlarged. Although it is not likely that the
Seaboard Air Line will for the present be taken
into the Rock Isand-'Frisco system it is now to
all intents and purposes. as far as concerns its
future policy, integral part Of that system
the dominant interests of which may be ex-
pected to operate the Seaboard in harmony with
the other railway systems Of the Southern coun-
try. Another development making for peace in
-
fair traffic rates and for stock market stability
IS the reported taking over of the Chicago Great
Western notorious as rate cutter by the St
Paul and the Missouri. Kansas and Texas The
road has many times in the past been reported
sold TO some larger system. but the indications
are that this time the rumor is correct.
An incident worthy Of note in the last week
was the advancing of Canadian Pacific stock
from a to a per cent dividend basis. The
announcement speedily followed a temporarily
successful raid on the stock by the bears, who
were IN entire ignorance of the intended divi-
demo increase, and whose ignorance received due
chastisement The advance in dividend appears
20 be fully justified by the company's condition.
Its traffic and earnings are rapidly expanding,
and its income account for the year ended June
30, 1868. shows surplus above fixed charges
and S1.300.000 dividends on the preferred stock
of $S.621, 400. Deducting from this surplus the
full per cent dividend of S5,070,000 on the
common, there would remain surplus balance
Of S3.55I. 400. Railroads in the United States
tei similar story of prosperity the Baltimore
and Ohio, for example, beginning it's fiscal year
by the announcement OF an increase Of 49, per
cent in gross and Is per cent in net earnings for
the month of July. while the New York, On
tario and Western in its report for the quarter
ended June 30. following the lead of the other
aFrO- 1n-rHs -I,-
against deficit of S2S,610 last year. In the
West, too. railroad earnings maintain their
satisfactory volume. Big harvests are in sight,
although not record breakers, and general bust
ness in the West as elsewhere, shows slight in
dicatica &C shrinkage; and the Western Dads
are urgently seeking to purchase cars the de-
mand being SO large that it cannot be fully met
Saturdays bank statement was surprise as
II usually is. A decrease in loans had been ex-
pected with mere confidence than on the proceed
ing saturday. when an increase Of more than
S26OoOO0 occurred; and the expectation was
realized. loans decreasing 81 351 800. The state
fnent, while it covered two three days of
heavy liquidation covered also several days of
advancing prices. but fairly large part of the
buying has been by investors for cash and for
the rest the brokerage houses are so well sup
piled with time money that there has been dur
ing the week a relatively small demand for call
loans, the rate for which during the week aver
aged 2 per cent The continued increase in the
loan item during the last few weeks in spite Of
the heavy liquidation IN the stock market. has
been accounted for TO an important extent by
the fact Of a very large borrowing demand from
mercantile houses in preparation for the fall
trade demand which is at length proba bly,
slackening
The decrease in cash holdings, which amount
Cd 70
certing, as preliminary estimates of the state
rnent had indicated gain in this item of more
than 100000. It may perhaps reflect opera
tons connected with the merger Of the National
Bank Of Commerce and the Western National
fank Of the United States; and possibly also the
simultaneous withdrawal Of vast number of
small sums for vacation expenses may be a par
tai explanation, the last two weeks in August
being by all odds the favorite vacation period.
The decrease in cash this week compares with a
decrease of LIS. 900 for the corresponding
week Of 1902. and of 81. $4,000 in 1901. The de-
crease in deposits amounts to SS.937. 200, which
Is S2.321,O0O more than the combined decrea Sc
ir loans and cash. This showing also may have
its explanation in the preparations making for
the bank merger. The heavy decrease in de-
posts practically offsets the loss in cash. the
surplus reserve decreasing only S23. 600. as COM
pared with decrease of $24T3O 600 last week
and sl.904.oJo for the corresponding week of
1902
The Official report of the country's foreign
commerce in July shows an excess of exports
over imports of merchandise for the month
amounting TO $9.35s 013. comparing with S13,-
19S $50 for June. The imports remained almost
stationary amounting in value to $50 $50 3S7
against $50. sec for June; while the exports.
ssl539,4oo, showed a decline of So 6S3 446 as
compared with the June figures. Imports were
S. 032. 5l2 larger than for July 1902 while er