The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-01-04
THE REPUBLIG:-sgNDAY JANUARY A., 1908.
ABRUPT TRANSITIONS MARK
SENTIMENT IN WALL STREET.
SHOWING OF RAILROADS A
DISTURBING FACTOR.
Bank Statement, However, Is Con
sidered Highly Encouraging
Market Closes Easy.

New York. Jan. 3.-Speculative sentiment
underwent several abrupt transitions to-
day. Trading apparently was in the hands
The first distinct movement in the market.
after u period of ~listless fluctuations fol-
lowed the publication of the November
earnings of the Pennsylvania Railroad. The
| rate at which the rise in operating eX-
penses in this representative railroad sys-
| TEN was seen to outstrip the gains in gross
| earnings served to enforce doubts, caused
by d similar tendency which has become
general throughout the railroad world. The
| pennsylvania lines directly operated showed
an increase in gross earnings for Norem-
| Der of sd9l.5O. hut expenses increased $1.S63-
100. so that net earnings decreased $5I1.d0
On the lines west of PittsburE and Erie
\ there was reported an increase in gross
earnings of SSS, GOO. with a growth of sos. 200
in operating expenses. resulting in a de-
crease In net earnings of $i14,6 600. The
whole railroad list weakened sharply uEier
the influence of this showing. Prices in
vania. receded to a point OF more below last
night. There was an animated recovery
upon the appearance of the hank state
S~S.6ii.t'0 i'll the surplus reserves Of the
banks.
BANKS SHOWING.
Such a showing is almost unprecedented
for the first week in January. That the
banks should have been able to get through
the January settlement. which. required re-
sources in excess of all previous records.
with a merely nominal increase in loans
was in itself a pleasant surprise to those
who had felt nervous about the money sit
uation. In addition, the gain in cash for
the week reached IS, i35, 900. which is almost
@.,Uo,CVo in excess of the largest preliminary
estimates. The redeposit of cash by the re-
tnil shops. making up the proceeds OF
Christmas trade, is attributed as the cause
OF this showing. The recovery In prices met
renewed heavy. selling and the market
closed easy and with net changes mixed.
Amalgamated Copper and United States
Steel We're notably firm throughout. Man
nattan WAS weakened nv the rpnllrempntS
made upon the company by the State Rail-
road Commission for increased equipment.
manifest In Mondays stock market when
the money rate mounted to Is per cent, but
after that the tone became strong: and con-
dtdent and the vapors which had been
hanging over the street, seemed to be dis
sipated. The year closed with a fairly ex-
uitant spirit among operators in stocks.
The dominant influence in causing this feel |
ing was the sense of danger escaped.
The end of the year was looked forward
and it was not until this week that as
suranee became strong that the prepara-
tons for the emergency had been adequate
and successful. although the fears of a
money crisis had been much relieved by
the announcement of the formation of the
bankers pool to supply $4,000 900 of funds
need. A special cause of Encouragement
was the small impression made upon the
loan account of the banks by. the forced
liquidation in the stock market.
TREATMENTS OF LOANS.
Holders of stocks had ample reason to
know that enormous repayments of loans
weekly statements of the New York Clear
ing-house Association showed no corre-
spending reduction of loans. The last state
ment of the condition of national banks. Is
sued by the Controller of the Currency
showed that loans actually had been In
creasing the country over during the period
of drastic liquidation on the Stock Ex-
change. Many important stocks in the mar
ket touched the highest price of the year
and since that time have fallen to the low |
est of the year. Yet n comparison of last
weeks bank statement with that Of Sep
TENDER 10 showed that the clearinghouse
banks had contracted their loans in that
time less than So, 900; 600.
1t is now believed that the funds recalled
from the stock market were used to a very
loans maturing. Authorities here and
ton of bankers Indebtedness to Europe to
the extent of tens of millions of dollars in
the last few months. The repayment of
these loans apparently has resulted in
greater ease in securing accommodation /
abroad during the last week or two. An
other disquieting feature. was the unex- |
pected call upon several bond underwriting |
syndicates for subscriptions, which 1t was !,
believed would be necessary. This was evil
left in the hands of syndicates and the dis
tribution of their holdings of bonds among |
the members. to be held individually or sold
at a loss in the open market. But the con-
viction grew during this week that neces-
sary liquidation of this character had been
accomplished and the preparation for the )
some large buying Of stocks by that portion |
of the speculative community which has
the only factor making for depression Of
securities. Confidence that a normal re-
taxation of money conditions will follow in
January serves as additional reinsurance |
for this element.
SHORTS ARE URGENT.
A considerable short interest. which had
been awaiting a money squeeze to cover,
evident. besides, an improved sentiment on
the part OF another speculative element in
the securities market. which has entertained
the elimination Of the wave of prosperity
aa.dd that Th a Long period Of reaction is to be
cling tendency of operating expenses. the
and the declining tendency Of net earnings
have formed the basis Of the reasoning of
this party. The large increase in net earn
the maintenance Of the I per cent dividend
rate by the Delaware and Hudson have
served as encouragement to holders of this
heavy speculation in the coalers. The Gov
ernment,s large cereal crops called renewed
uatlon. The rise in the prices of copper
and petroleum was cited as against the
contention rndd;,n that the rise in prices of COM
More confidence was .professed. also. that
the advances in freight rates to 70 into
erect with the new year will be effective
In recuperating the net earnings of rail-
roads. How far this revision of sentiment
has extended beyond the profession opera
tors in stocks. who were the PRINCIPAL buy-
ers this week. will be demonstrated when
the professionally come to market their new
holdings and take their profits. The prob
lem of the extent of the suspended syndi-
cate operations and the volume of tftefr
holdings still awaiting a market is another
item for the future to disclose. How far
foreign obligations that have been deferred
but not yet discharged will affect the future
market for foreign exchange is yet unde-
termined.
Bonds have shown strength in sympathy
with stocks. but the principal activity has
been in the speculative contingent, paying |
coupon advanced u per cent, as compared
with the closing call of last week,