The Montgomery advertiser., 1903-11-22
WALL STREET REVIEW
TRADING IN STOCKS wAsDIs-
 ULToRY.
Publications in Reference to Passing of Divident on D. S. Steel Ceni- mon and Reduction on Pre-
 ferred Stock, Being Det-
 ermind on Caused Drop.


 the net result in the way of price changes were not important
 The publication of assertians that the pass ing of the dividend on United States Steel common and the reduction of that on the pre- ferred stock had bee undetermined upon, in- duced renewed selling of the United States Steel securities: forcing the preferred stock more than point lower and the second bonds nearly point. Both rallied in the late re- covery of the market.
 The bank statemeint was another discour- aging factor. The loan contraction amounted to S2.62o7oo. The deposit account was fur ther contracted by shrinkage of cash reserves of S3, 500. so that while the reserve re- quirement was reduced to the extent of Sl,- 52o.4 .42o the surplus suffered to the extent of S2, 227.o75, bringing 1t down to s4.siI $50 The course of the money market makes a little obscure the recovery in foreign exchange. It is now evident, however. that the accumulation ot exchange has in view the requirement for the payment of SAC, GOO 900 to the Panama Canal Company in connection with the set- tiement of the canal question.
 It Is to be noted also that the value of inn- ports of dry goods and merchandise at New York this week have risen s 800. 900 over those of last week, while the exports of orain for the week are nearly 900. 900 bushels less than last week. Prices of stocks have turned upwards this week, in spite of some unset- clement at times.
 Transactions have been largely in profess sional hands, The most effective influence in turning the market was the realization of the very favorable position of the international exchange situation, induced by the publication of the foreign trade statement for October With the exception of October. Ieoo this statement shows value of exports and an ex- cess value of exports over imports greater than in any previous month of the country's history. The rise in value of cotton exports in October to Sl6,ooo. 900 over those for Co., tober last year accounte dior this.
 Enormous exports of cotton have continued up to the present time, foreign consumers be- ing influenced by the fear of another corner in cotton In this country At the present hat ha marketing of the present crop will create a vast total of credits to be liquidated for us by foreigners
 The dealing course of our imports and the prospect of expanding iron and steel exports are additional factors to be reckoned with in estimating the feture of the exchange market. The heavy requirements thus thrown upon foreign finances have admonished the hnalclal world that delicate and considerate handling of the situation was required to avoid an up- set of foreign money markets, which might affect unfavorably the best markets for our products. The sum of over SS, 000, 900 in gold which has been taken from London for New satisfaction of the trade balance in our fa- yor. Competent authorities estimate that the present volume of our indebtedness to for eigners is less than for many years past in indebtedness at s4oo. ooo. 900 within two yeare past. Much of this liquidation has been forced during the painful period of violent declines fin the stock market.
 There was a time earlier in the year when anxiety over the resources of our money mar ket were such that opinions were heard that nothing but failure of crops and the resulting Tightening of requirements on the money mar ket could save the market from a money panic. On the contrary. normal requirements have been met for crop purposes. as we'll as emer. gencies for the financial troubles at several cities without disturbing the tranquility of the money market. The contraction in trade and industry now going on Is looked to in- crease the accumulation of idle funds at re- serve centers. The principal offset to this prospect is the inclination of railroad cor porations to issue bonds. large amounts of which are understood to be overhangtng the market in waiting for the first favorable op- portunity.
 On the industrial side attention has been centered on the iron and steel trade and the affairs of the United States Steel Corpora tion. Advlces from the trade show continued uncertainty as to customers taking hold at expectation that the decline in prices Is likely to extend. The reduction in export steel freight rates accorded by the railroads while promising to facilitate the export trade, is looked upon as concrete evidence of poor pros poets for odmestic trade and lower levels of prices at which business must be done to sc cure foreign trade.
 United States Steel has been affected by the discontinuance of the process of conversion of preferred stock into second mortgage bonds. The course of the preferred stck has been downward during the conversion process, in spite of the demand for accumulation by the syndicate for the purpose of conversion.
 The disfavor felt towards the creation of a security ahead of the preferred stock, with the exclusive privilege of conversion in the syndicate coupled with the unsatisfactory con- ditions in the trade, steadily overbore the de- mand for absorption by the syndicate. There fore the preferred stock and in fact all the securities of the corporation rallied sharply following the announcement of the cessation of the conversion. A feature of the weeks mar ket has been the stirring of activity of spec ulative pools in minor railroad stocks, which have long been reduced to inactivity to the money market conditions. This development is chiefly significant signalizing the more tol- erant mood of money lenders over the grade of collateral and the proposed use of borrowed funds. The better prospects in the money mar ket have been in favor of the bond market, but the prospect of large additions to the list of railroad bonds have been deterrant in- fuence of buyers. United States 2s declined x and the 3s and the old and new As A be- low the closing call of last week.