The sun., 1903-12-13
FINANCIAL AND COMMERCIAL.
SATURDAY, Dec. ].


marked out Yesterday there was to-day IN
the stock market heavy selling of Pennsy!-
vania, stock and the securities generally
comnrised in what is known as the PCnnsyl-
yania group, simultaneously with equally
heavy b,,yng in OF the short contracts that
have been put out in the last two or three
dova IN the United States Steel shares.
The general market sympathized with the
decline in Pennsylvania as it had previously
shown the effect Of the selling of the steer
stocks: that is to say prices fell on n'.'''
h,,t not much. Rather obvious liquidation
appeared in Brooklyn Rapid Transit ana
American Sugar Refining or news Dear
ing upon the market there was little' hail-
road reports Of gross earnings for the hrst
week of December generally showed IN
cpases The bank statement, with lts
exhibit OF an increase in cash OF u ,7ol 'ooV'
a decrease in loans OF 81 500 and an IN
crease in surplus reserve OF $l,7'4,6Io was
little regarded, although 1t was somewhat
more favorable than had been looked Tor.
The days market was thoroughly pro-
fessional and in way artificial. Every one
is familiar with the reasons for weakness
in Pennsylvania stock, or at least with the
arguments that are adduced as justifyinR
a decline In the price OF the security by bear
operators They are that the road must
suffer from diminished revenues owing to
the leesened activity of the iron and steel
business, it being one Of the largest carriers
in the country of iron and steel products;
that its expenditures for vast schemes OF
tunnel building and other improvements
tho utility Of many Of these schemes
being held to be in themselves doubtful
must be drain upon the roads treasury,
even If only temporarily, and that the
necessity of keeping up dividends at the
present rate upon the oompany's greatly in
creased quantity Of capital stock for long
period anterior to any profitable return upon
the improvements that are planned, may
become burdensome. These arguments
have, however, long since been addressed
to the stockholders Of the company and have
been doubtless fully considered by them.
It must seem probable In any calm view
Of the case that such stockholders as would
he impressed by this reasoning have al
ready sold their stock. There is, indeed,
little doubt that the pressure that in the
last two months has been visited upon the
Pensylvania' shares In the stock market
has been almost wholly OF speculative
nature.
Despite the large decline through the
week in the price OF the United States Steel
shares the consensus is that the outlook
for the IRON and steel business is brighten
ing, and 1t would not be surprising II we
should soon have another illustration Of
the wen known tendency Of buyers Of COM
moditiee to place their orders upon a rising
rather than a falling market. In the long
.1.- -;ola
for use In manufacturing upon a SCALE
down rather than upon a scale-up would
perhaps be moro advantageous for every
body concerned: but the execution Of suoh
policy would require great deal Of cour-
age and the command of great deal Of
money. 1t Is IN accordance with human
nature to do tho business the other way.
Probably few authorities in the iron trade
would put themselves on record at the
present time as stating that they believe
tho turn" in the iron and steel business
has arrived but It Is at any rate clear that
the price Of pig iron. the basic product In
the industry, has not only stopped going
down, but Is going up. that the demand for
it Is enlarging daily and that sales OF IL
indlude all grades. The large producers
are turning down orders offered at tho
extreme low prices touched two weeks ago.
and while this improvement has thus far
been confined mostly to the Southern mills
it Is only natural to expect that 1t will spread
to Northern furnaces. People in the build
ing limo In this oity say that the labor diff
culdes which have impeded operations
here are virtually at an end and that in the
spring there will be a great quantity Of
ktxc tha <>f nd
steel, not perhaps in snowy Office structures,
but In smaller buildings in the residential
and manufacturing quarters of the city,
especially in outlying districts. The same
report comes from other localities In
the copper market, too, there is an active
and strong demand for copper at prices
we'll over II cents a pound, following the
discovery that at IL cents a pound the
demand for the commodity was practically
unlimited. The advance in the Anal
eamated Copper shares on the Stock Ex-
change has been due doubtless to this fact
rather than to any improvement in the
status Of the company's legal affairs in
Montana. These affairs are. however, in a
good deal better shape than they were.
The company's chief opponent in Montana
long seemed to have public sentiment in
the State as his chief ally in his warfare
against the Amalgamated interests. The
situation is now reversed.
Bank clearings for the week were larger
than they have been recently, and the
colder weather has been Of distinct help
to all mercantile business. Advices from
business quarters throughout the country
are not at all pessimistic. In our own
city. trade in general, from that OF the
great manufacturing establishments to
the large dry goods stores, is, while not at
tho high tide Of feverish activity that pre-
vailed year ago, still fully up to that OF
an average business season; and one can
find little in talking with any intelligent
and conservative merchant from any part
Of the land on which to base gloomy pre-
dictions concerning the country's business
in the coming year. The full return of
the oountry's foreign trade in November,
as will be disclosed in the statement soon
to be published, will be awaited with ex-
treme interest, in order that it may he seen
whether the increase in manufacturing
exports will keep pace with that shown
in October. Exports of raw materials,
due almost wholly to the abnormal and un-
preoedented outward movement OF cotton,