The Montgomery advertiser., 1903-04-05
STREET REVIEW
MARKET roo MARROW TO HAvE
 SI0NIFICANCE.
Explosion of Rumor Regarding Nor gan and the Pacific Reflected in the Opening Declines-Bank
 Statement Causes Selling.

NEW YORK. April 4.-Today's stock market was too narrow to have any great significance. The opening decline expressed the disappoint- ment of those who bought yesterday on the had been taken off the market by private asI cement Yesterdays furry among the shorts on account of this rumor conveyed an such settlement should 1t suddenly develop and awakened e spirit of caution on the part of the bears There was some support offered the market when it was seen that the selling pressure was light. wabash preferred espe- cially was lifted . point on the strength of of Ss of tenn. lively selling movement followed the appearance of the bank statement showing a Bringing thu. i.s% aown so sa of sas Ehs showing was wholly due to the fail in cash, the loan item showing . nominal decrease of system in spite of the very large aggregate changes in loans known to have taken place during the week in the April lst settlements. cash of million and . half, the statement shows that the banks have lost during the week Se.62A 800. There is evidence that this result was due to the fact that the trus companies are withdrawing or withholding deposits from the banks to build up the reserves in their vauits tc conform with the clearing house reserve amounting to 10 per cent of their de- posits on June l. There seems also to have wsst m se.sy g, sS'S 10 than to the S2So, ,ooo reported The selling induced by the bank statement was again met of the money situation in spite of the weak bank returns. The rally seemed to have spent its steady.
 The most notable fact regarding this weeks stock market has been its progressive dull ness, leading to the low level of daily trans actions for the year towards the end of the week. The general tone has been one of de- pression. although this was temporarily re- This was partly due to the expectation that the April disbursement of dividends and in- market and result in some buyinx of stocks. but published interview with J. P. Morgan was even of greater effect with the profess sicnal trade element. Mir. Morgans tone of deprecation of prevalent pessimism regarding financial affairs was expected to have far reaching influence with the investment classe, but beyond the professional buying intended to anticipate such investment demand on Tuesday. there was no appreciable effect in the stock market Even the short interest seemed to be satisfd. disappointing the hopes of those who have looked for substantial aid for a rally from this element when prices finally turned upwards MT. Morgan expressed faith in the soundness of the recent capital issues which have glutted the market and proved prac- tically unmarketable has had some reassuring effect beyond question. although his conclu- ton in banking and financial circles. Faith in the soundness of the new securities on the
 
 from their being withheld for sale in a weak market, while other standard securities are H. quidated to have resources for holding the new issues. Some of the recent persistent selling of high grade railroad stocks is attributed by common consent to this purpose to conserve holdings of new bond and stock issues. This process, however. amounts to a demonstration that the holding of railroad stocks on an in- vestment basis of from per cent. or under A. per cent. is not an attraction to capital in the money market on an interest basis of over 5 per cent. and definite prospect of an inn provement in the money facilities. Stocks which have been held high on account of prom issues below market prices are practically affected by the prevailing tendency to realize without depending on the doubtful facilities of the moAey market for taking up these future subscriptions. The showing of net earnings by some of the recent selling of high grade stocks has been for inside account and based upon knowledge of the course of earnings. The Pennsylvania's report of earnings for Feb.l- ary created 8 deep impression by reason of the varied and representative character of the operating this system in February was more than twice as much the increase in out standing and dividend requirements by one- third, the influence of this showing and senti- ment is not difficult to understand The mar ket for the stock shows no indication that this discouragement is allayed by the argument that the intended outlay of nearly SIo0. 0o0,- 900 in proceeds of the new stock issue is al legged to increase the earning power of that property in proportion to the increased divi- dend requirements. The importance attached to the rising course of labor cost is evidenced by the quick response in the stock market to reports of demands for increased wages on different railroad systems. The dissolution of the strike injunction issued against the, em- ployes of the Wabash was greeted with a fall in prices although the efficacy of the in- junction in preventing strike was greatly doubted and the prospect for a settlement considered better after the dissolution of the injunction than before It's issuance. The out come of the contest over the voting power of the Union Pacific control of Southern Pacific Is awaited with anxiety more on account of account of the questions involved in the suit itself.
 The money market has been disturbed by the April 1 settlement, but confidence is felt in a betterment of conditions for the immediate fu- ture. There is. however, renewed considera- ket and the various factors threatening strin- gency The degree of business activity in all lines seems to insure large requirements, which extend to the collection of Government revenues, both customs and internal revenue. The much discussed problems of the Panama by New York trust companies the floating of Government loans in foreign markets and the volume of debts to foreign money mar kets loom large in the prospective with their nearer approach. The money market has been under pressure in the same way as stocks, but in much less degree.
 There was a decrease of over 22 per cent. of the par value In the bonds dealt in on the Stock Exchange in February compared with February of last year. United States As and the SIS registered advanced A per cent. and the As coupon # per cent. The new As de- per cent: as compared with the closing call of last week