New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-05
TEE WEEK IN WALL STREET.

xveeE or q volume Of business tnat reueCOeO
heavy liquidation by people who could no longer
stand the strain os declining prices. Selling OF
This character may not have run its course IN
the first half OF the week II is possible that
tbe,s are more accounts that must be liQui-
dated. ard that further losses IN values will be
recorded before a sustained upward move de-
-velops. II view OF the fact that the market has
had SO many false starts in recent weeks. 1t
may be well 70 bear n mind the possibilities OF
further Declines but ft is well worth noting
nevertheless, that IN the second half OF the last
week there was great Improvement IN the
buying. better support than had been recorded
81 many weeks and expressions Of confidence
On the part OF many substantial interests in the
seief that the tide had turned. that forced
liquidation was at an enc. and that higher
srsces would be recorded Securities were ac-
ru-nulate6 BY an excellent class Of operators.
,,d q more decided stand on the bull side by
banking houses OF prominence was in evidence
T7e severe slump in values on Monday was
not followed by untoward developments n the
financial or commercial world Various rurnors
we're put ia circulation affecting individuals and
corporations. but no local failures were an
-1ounced. the only trouble OF note occurring IN
Baltimore and Richmond. where two firms were
forced 20 ask for extensions from their creditors
Urgent liquidation OF the last two weeks has IN
1oubteslv gene far toward mending the weak
o-s in the speculative situation. and there is no
1850, why cash purchases Of stocks should not
e,a made al the current level. The market is
eDes With solid stocks and bonds. selling az
level that returns ; per cent and above. ana
no investor should ask for a better return than
-be quoted rate This fact. doubtless, appeals
20 investors who have not lost faith IN the
country, as investment houses report better
.nouiry FOR stocks for people, who pay for them
and Ike them out OF the Street The decline
IN values is evidently exerting most effective
snhuenoe in the distribution Of so-called undi-
Eestible securities
The heaviest selling pressure IN the week was
a. the United States Steel issues and Pennsyl-
~ania stock the last named being sold by houses
chat often operate for important interests. The
decline in this issue naturally created uneasi-
ness. as II was thought that liquidation came
from sources that were heavily interested In
-he ao-afiop Of the new stock Current earn
Sings % the Pennsylvania are large enough to
cover dividends despite the increase II the
ssompany's capitalization. and the Street Is not
worried about the company's ability always to
rav dividends its uneasiness over Pennsylvania
affairs having to DO entirely with the belief that
snany people tied up with the stock 70 an
extent that is a menace TO the general market
The new stock was offered to stockholders at
go when the outstanding stock was selling
above 40. IN last weeks market the shares
sold as low as 1151s. closing at llS5s- The Steel
issues were sold for long account in large
amounts, but there was also heavy professional
selling Although various assurances were given
by people identified with the corporation that
the regular dividends would be declared the
sStreet chose TO consider the market quotation
for the shares q better forecast Of the forth
coming directors meeting. At its low price last
week Steel common as a 1 per cent stock rep
resented an interest yield of over &c per cent
The iron and steel trade is adjusting itself to
normal conditions. and there is no occasion for
the current pessinism regarding the outlook for
bew business. one OF the best authorities in
the iron industry made in the week the follow
sng remarks, which are well worth quoting:
When il is discovered that he iron trade is
poiusting itself from abnormal 10 normal con-
ditions; that the first result viii b. to pro-
vide all construction work with cheaper ma
1eTisls and labor under better discipline: that
well managed iron and steel companies have
prospered in the past under worse conditions
than We are likely ever again 20 see in the fu-
fure; that curtailment Of output Of raw ma
serials which have been forced a. too high
ooet level rs 3 bull instead - 2 bear tguIlert;
and that the United States IS absolutely irwin
chile io its resources Of iron and steel max
fng, and with equal labor conditions can take
the trade Of the world-vhen all this is better
yealized. the needed readiUstment viii have come
Bnd the Inevitable reaction follow. The much
szlked-of restriction OF output among furnaces
s. simply movement 10 take of the five
sen per cent production ir excess OF current de-
snand. and while doing this 10 rectify some OF
the burdens that furnaces have been laboring
under curing TIE extreme conditions of the past
swo years"
Although the weekly hank statement showed
q slight reduction IL reserve above legal re-
ruirements. there WAS nc material change IN the
money market and no indication Of disturbance
this fall. Local bank conditions are intrinsi-
oolly sound. Cal loans are al an unusually low
level FOR this period Of the yea. while tine
suuds exhibit 2 easier tendency due 70 the
Increase in government deposits. payments on
ahe = per cent bonds OF 1904 and the receipts Of
Australian and klondike gold. T5arkers appear
more disposed 10 put out money on time con-
tracts. owing 20 their belief that the demand
FOR money IN connection with the moving Of
the crops will be Offset by the government pay
Tnents 10 the banks under Secretary Shaw's
money market relief plans. TIE inquiry from
Che West for funds is light. and the fact that
Secretary Shaw is increasing government de-
posits in country banks suggests that New-Tork
viii not be forced 10 send any large amount OF
snoney 20 the grain states this autumn. Ster-
Ting exchange WINS heavy. and foreign bankers
-,redicted lower rates IL the rest OF the season
Receipts Of cotton bills were large while the
o1e-ings Of grain bills were only moderate.
rscaixers' sixty and ninety days bils were IN
good supply
Railroad earnings continue 10 show a heavy
t-afhc movement il all parts Of the country. Net
earnings are increasing as well SIS gross. Erie.
FOR instance showing gain in net OF nearly
sl0e0eoO for July and August, while Reading.
-E~F. -~aE r-e~e fzraT ~, -