The Montgomery advertiser., 1903-10-25
\ All STREET REVIEW
THE MARKET ALMOST INERT
 fHRQp0HoUT THE DAY.
Appearance of the Bank Statement Caused sluggish . Recovery
 But Were Merely. s=-,
 Fractional,

Fractional.
 .4t
 NEW YORK. Oct. 2A-Today's stock market was almost inert throughout. The appearance cry from early depression, but the movement was merely fractional and was not maintained the closing being irregular and still very dull. The reserve item in the bank statement proved ing reported at only s3.ooo In face of an ap- parent upward movement of cash during the week of between three and four million dollars. Bank officials were somewhat ct q loss to ex- plain the discrepancy. but some of them as- serted that there had been considerable re- ceipts of currency from Chicago and the West during the week and the explanation was haz- arded that this movement might have served to offset the heavy outgo to Baltimore and Pittsburg and the cotton regions. The failure Of the customary demand from the West for currency at this season has been the subject of much comment in banking circles. but that there should have been considerable of a inove- nent fin the contrary direction in the middle of October is quite unprecedented. It was sug- gested as possible that local trust companies had made transfers of cash deposits to the clearing house banks London's uneasy feel. ing over the war outlook in the far East had some slight effect in the local market and there was repetition of rumors in circulation for several days which have been often de- nied of an institution in trouble at St. Louis There was a deposit of q 900 at the sub treasury today for teegraphic transfer to St. Louis. The variety of the demand for bonds
 
 the number Of quotations for bonds exceeded in number and variety those for stocks for good balance of the time. recession to 5S in United States Steel preferred was the un! settling influence at the close there is general agreement In Wall Street that the stock mar ket has offered surprisingly good resistance to tho deveiopments Of the week, which were un- deniahly serious fin their aspect. The appoint ment of receivers for two trust companies fin Baltimore, although not wholly unexpected proved shock and there was a severe decline 0F fr s61u nnra nyN oa the more marked by reason of the considerable commitments to the long side made by profess sional traders during the latter part of last week. which were hurriedly thrown back upon the market on Monday. But Tuesday saw a nasty re-purchase of holdings and the bank failures at Pittsburg were practically ignored ip the. trading. The conclusion seems obvious that liquidation growing out of the Pittsburg and Baltimore troubles have been proceeding with that which has been in progress at the Stock Exchange for months. During the period of greatest depression in the stock market. several weeks since. 1t was pointed out by Ja- cob H. Schif. the head of the banking firm of Kouhn, Loeb O., in an interview on the situation of the Associated Press that de- mand for securities YVES likely to develop while liquidation and contraction was still in pro- gress in the country at-large. There has been undeniable evidence of some such condition in the stock market this week, more notably in bond department. in which there has been a considerable absorption for investment at ad- would probably occur. the liquidation has pro- duced some accumulation of banking reserves with resulting effect upon the money rate Another effect of the process of contraction has been to withdraw some of the expected de- mands upon the money market for which re- sources had been conserved. This Is true of the dreaded heavy de mands from railroad cor porations for bettermcnt work already under way. Borrowing Of this kind at high interest rates was feature of last Falls money mar ket. That it has not developed this Fall is corroborative of the evidence from other sources that such works have been greatly curtailed in all directions. With tie pros poets of lower rates for money. the rate of re- turn on many railroad bonds ct present prices has made them attractive for investment, in the case of shares of stock. 1t cannot be said that the present situation has extended beyond marked cessation of the recent persistent pressure to liquidate there Is no longer mani- fest the constant selling all news that might be regarded as favorable, which gave evidence of the urgent needs of the holders of the securities for ready funds. The week s events in the stock market offer some indica- tion of a contrary tendency to buy stocks on bad news. The failure at Baltimore and Pitts burg has not failed to arouse a feeling of uneasiness. The consolidation of capital for the last few years and the financial operation connected with them have expanded the field for operations for these institutions, be- yond the lines of their original operations. But their operations have been widely extended into the banking field by the increase of de- mand deposits for which liberal interest is often paid. while the, legal requirements upon the banks for reserve do not apply to these t-s-fiG the trust compaiiies which has been much criti- cised has been the promotion and exploitation of enterprises by underwriting. The tone of the discussion at the bankers convention in San Francisco is sufficient evidence of the frank recognition of abuses fin this field amongst bank and trust company officials themselves. ing house and the New York trust companies over the question of the maintenance of trust company reserves has brought the question to the public view long since. There has been Sa,tao in NayxN For In have illustrated the abuse the promotion | side. Including the shipbuilding case in the public eye, The Baltimore example of the Consequences of overcommitments by trust companies in promotion projects therefore caused keen impression In the financial world. owing to the doubt of how far a similar state of affairs might be extended in the trust company situation as whole. The Pbtsburg incident was also examined in it's Illustrative aspect. The enormous accumulation of wealth in Pittsburg of years growing cut of the con- soIidation process in the iron and steel indus try Is notorious in the financial world. The large extent to which this new wealth has gone into bank extension is also generally recognized. The terms upon which deposits may have been attracted to new banking in stitutions Is brought forward for consideration by the failure of the Pittsburg bank brought about by the withdrawal of deposits by small country banks. which had been secured by the rate of interest allowed on deposits. The able. The export demand for grain has been liberal and the movement of cotton to market has been much freer Heavy currency ship ments to the South have resulted and the movement to the West seems to me restricted still with the ultimate demand from that re- zion problematical Railroad officials claim un- diminished volume of traffic and complain of car shortage and freight congestion. But ex- pert opinion holds that the present freight movement and that for several months to come represents business al ready done and es' inmates probable falling of in the Spring and a coming reaction. For that reason, the present car. shortage is not expected to lead to demand for, new experiment. Authorities in the iron and steel trade see no improvement there. No considerable influence was produced by the late weakness. in Amalgamated Cop per growing out of adverse decisions to put down the properties affected, pending deci- sion of the litigation on appeal.
 The breadth and activity of the bond market have been pointed out The United States 2s advanced % and the 3s and the old and new As h per cent. over the closing call of last week.
 Bonds.
 United Stetas refunding 2s, registered. o7is United States refunding 2s, coupon ...... lo7h United States 3s, registered lOS
 United States 3s. coupon ..................l o9al United States 4s registered .......... 354 United States new 4s. coupon ............I 35h United States old 4s. registered. II
 United States old As, coupon ............l II