The Montgomery advertiser., 1903-03-29
WALL, STREET REVIEW
THE STOCK MARKET SWEPT BY
 SPECULATIVE GAAE.
Bear Party Makes a Fierce On
 slaught on Prices, But Bank
 Statements Appearance Caus- ed Them to Seek Cover.

indication The bear party made a fierce on- slaught on prices after unsteady opening and succeeded in dislodging some heavy blocks of stock which were invulnerable position by reason of calls for additional margins and by stop loss orders placed below the market The unexpected increase in reserves disclosed by the bank statement caused an anxiety on the part of the bears and they bought to cover in an urgent manner. causing a violent rally in prices. There was a notable quieting down after the principal demand from the bears had been satisfied and the market wayered again but closed about steady, although below the top prices on the rally. There was as little specific news to explain the selling as there was yesterday and 1t seemed to be based upon discouragement over the general apathy of the speculation and the many disappontments of hopes of rise in prices. There some show of support in New York Central and Pennsylvania and the greatest weakness shift ed to the Pacif1cs and St. Paul. Manhattan was supported and there was some strength amongst the coalers based upon the favorable reports of net earnings for February of a Reading and Lehigh Valley following that for only explanation offered for the higher re- serves shown by the banks in face of an ap- parent decrease judged by the known move ments of money the working of the aver age system of computation A daily increase in cash serves to answer the effect upon the weekly average. The passing of April lst period is looked for some relief from the de- mand for money and the liquidation effected in stocks yesterday and today is also expected to cloud the situation to some extent.
 The speculative outlook has been clouded this week by the money situation. present and prospective. and the result has been a neg lected and sluggish stock market followed by urgent liquidation In a few special stocks there have been active speculative movements based on individual causes. The recent break in the copper market in London has had an un- settling effect upon the recent extensive specu- lation in copper stocks all over the world and was reflected fin sharp reaction in Anal gamated Copper on the Stock Exchange with a sympathetic effect on the whole list. The decline in that stock found a large long ac- count in a vulnerable position and some heavy
 
 Some support was forthcoming when the cop per market in London recovered The recep- tion accorded to the new Pennsylvania stock issue was not encouraging to those who had hoped for a stimulating effect on speculation from the declaration from subscription rights With the market prices of the stock at about I40 the right to subscribe to new stock at l2o to the extent of One-third of present hold ings offer substantial benefit to stock the market supply of these stocks one third and the formidable money requirements involved in the subscription to the new stock had resulted in active relzaton in Pennsyl Yania. The subscriptions to the new stock will require some S96 900, 900. of which half will be payable in June. one-quarter in October and the remaining quarter in June of next year. The effect on the stock of this proposi- tion is significant for the feeling of anxiety issues in the market. There seems to have been some buying of subscription rights to the new stock against the sales of the old stock on the exchange. but the fact remains that efforts were urgent to find quick market for the large supply of new stock impending or to find resources for taking 1t up by liqui- dation of present holders. Other stocks which have been held at price leyed in the expec- tatons of benefits to accrue from new stock subscription rights have been unfavorably af- fected by this object lesson. The labor ques- tion has been an influence in the background of the speculative situation and every new demand for increase of wages intensihes the fear that the resulting increase in operating expenses will affect the rate of profits to share holders. The reports of net earnings of rail- Ir T,lNr tr crease as a result of higher freight rates to relieve this apprehension With these returns in hand little effect is produced by the large increases in gross earnings reported by the railroads and by the reports of unprecedented volume of traffic and conPestion of freight from various quarters. Various projects for outlay of terminal Improvements and addi- tional equipment in having further absorption of capital are the sequence of this condition. Attention is attracted by complaints of the practical breakdown of motive power on some railroads as being responsible in part for the blockades of freight. Such condition gives rise to the fear that some of the striking economies Of operation which have been ef- fected of late years by railroads have been at the expense of too heavy a strain upon mo- tive power to enable it's efficiency to be prop erly maintained. The drain upon New York bank reserves has continued during the week. amounts of half a million which was shipped to Buenos Ayres. The London market has been disturbed like our own by the stringency of money and tho requirement. in prospect for the Sl5o, 900, 900 Transvaal loan. The de cision of the Secretary of the Treasury to refund Slo0 oo0 900 of short-term Govern ment 3 and 4 per cent. bonds into consol 2 per cents. caused a mOmentary recovery of a point in a few prominent stocks in the market, but the pressure to sell at advance wa5 greater than ever. The basis for additional note crcu- lation provided by the supply of per cents. seems to be taken no account of by the financial world the additional crcula- tion Is not available for banking reserve and provides no basis for expansion of credits. The cash payment of the premium on the refunded IaY,, ,lG FVI TN,, but the amount IS so moderate and its disburse- ment likely to he slow as to appeal little tn the present discouraRing sentiment in Wall Street over money affairs The contest between the Hartman and Keene holders in Southern Pacific has been in abeyance during the week to be met and the prospect serves to help the recession of operations in the market The decision of the Governments suit against the Northern Security Company hy United States district judge Is another event overhanging the market. although appeal to the Supreme Court is taken for granted. The fate of the coming crops Is still too remote an event to be much regarded in the stock market and the undertaking reports of prosperous trade condi- tions seem to be entirely without Influence upon sentiment The opening of navigation on the lakes Is looked forward to, especially to help unlock the accumulation of grain at interior centres and start 1t abroad with charges and replenishment of the supply of foreign exchange.
 The market for bonds has been dull and the of prices irregular New 4s ad- vanced F per cent. and the new As 3. per cent and the 3s registered and 5s T. per cent The 2s refunding registered declined l and the 2s coupon per cent. as compared with the clos Ing call on last week