The Montgomery advertiser., 1903-12-06
WALL STREET. REVIEW
DOUBT AND HESITATION IN
 THE MARKET.
This Tone Naturally Followed Sig 1s of Continuation of the Rise Friday-0ood Bank
 Statement.

NEW YORK Dec. 6.@There was a tone of doubt S,s ana hs:s1n n todsy stock %aTns in yesterdays market of signs of ( continuation of the rise Yesterdays large volume of deai- ings and the small net changes in prices pointed both to heavy realizing and to large short covering. While the realizing is strengthening factor of the market the reduc- tion of the short interest deprtves 1t of technical factor of strength, A renewed advance in Brooklyn Transit followed by the local fractions this morning obtained little following in the general list. A selling movement fol- lowed which carried a number of the leaders, such as Pennsylvania, United States Steel pre- ferred and Arnalgamated Copper a point under last night. A feverish and irregular recovery succeeded upon the bank statement The gain of half a million dollars in cash reserves was an agreeable surprise compared with the ex- pectation of a decrease of several hundred thousand dollars and 1t is supposed to be due to the marking up of former discrepancies the other way. The temper of speculation in stocks has undergone change this week end Commission houses report that there had been little growth in outside order business and the movement is supposed to be due to operations by professional traders and habituai operators of the wealthy class. But the technical sig- nifcance of the movement is probably not less on that acount hTe operators in stocks for a long time have found their only success on the side ot the receding prices. This week the market gave evidence of being oversold and the bears failed of their recent success in fore ing out sales of stocks when they offered prices down. Among the industrials the urgent de- mand to borrow stocks for delivery which commanded a premium in some eases gave warning of danger to the shorts and prompted buying to cover. The early covering move- ments among short speculators of the smaller classes did not at first disturb the more power full operators on that side of the market anu they were inclined to avail themselves of the rallies fin prices to put out fresh lines at their higher level. Some of the selling that was at- this renewed " S short seilins. eff with ~ the persist
 ence of upward movement through the week extende short interest was thus left uncovered until past the middle of the week when 1t be- came clear that e bear element of stronger and more persistent character than any here tofore reached was being driven to cover, with an impSrts1t effSet upon prices and awaken. Ts. fears of the shorts were aggravated by their suspicion that an absorption of stocks had been going on by the great capital and banking combinations whose operations contemplate wide policies and are based on convictions as to general conditions and their ultimate work ing out The recovery in prices gained force and proceeded in the face of the various news factors that were unfavorable but which had ot do with conditions that have been more or less foreseen and have been an elemen in the speculation for decline for some time past
 For instance. the cotton crop indicated by the Governments estimate at below l0,ooo, 900 bales would be regarded as amounting to 8 national calamity were it not that the heavy marketing of cotton during November awakens some skepticism towards the estimate. Re- ports continue to be received of the shutting
  ures of retrenchment and economy in that trade. Railroad earnings while still holding above last years level both for gross and net show a progressive decline in the ratio of the increase for both. But these developments are met by the growth of the opinion that the enormous shrinkage which has occurred in the prices of securities already have been suffi- cient to discount the worst that could happen to trade reaction and contraction. The sen- ment over the industrial future also has grown distinctly more hopeful. This is especially marked in regard to the trade in iron and steel
 from which come reports indicating decline in prices has met a revived demand which promises some consumptive absorption of the Iessened volume of output. The measures of economy already adopted and those in con- temptation and the reduced freight rates on steel products for export arouse hopes of an available outlet in the foreign trade. The de- tails of the foreign trade statement for October, after gratifying evidences of tho revival of export trade in all lines of manufactures. The reasonable cold weather has given an impetus to all lines of distributive trade and the coal trade, in which considerable congestion had developed is reported to be especially benefited by the cold weather. In the stock market no small part has been played in the recovery by the constant circulation of rumors of important ad1ustment or control and of policy touching the relations of groups of capitalists, tending | to harmonize those relations. The money mar | ket has scarcely shown the expected relation | following the completion of the December set dement's. Conditions abroad as well as here promise a continuance of a firm money market for the rest of the year. But 1t is made clear | from the movement or international eXchange and the statistics of inter- 'ional trade that New York commands the B ation. New Or leans and San Francisco L-ve made further acquisitions New York for currency during | the week and aditional shipments to those points are expected but the Western demand | for crop purposes has come to an end. Gold
 for import has been secured in the London
 market whenever the movement of money rates | did not make 1t more profitable for holders of | exchange on London to hold up their collec-
 ton and leave the proceeds on loan in Lon
 don. new development has been the ship
 ments of gold from Japan to San Francisco.
 San Francisco finds it of greater advantage to
 dispose of its sterling exchange to Japan and
 to take gold from there in compensation, The
 movement serves as a relief from the San | Francisco demands upon New York for cur
 rency. Confidence Is undminished that money will become easier with the turn of the year
 and 1t is believed that the movement of stocks l Is In part. a discounting of this expecation
 l The bond market has been somewhat irregu-
 lar. but has grown stronger in sympathy with | stocks United States 2s and new As declined l A per cent. below the closing last weak