New-York tribune., 1903-03-01
BONDS.
TEE DAYS OPERATIONS IN STOCKS

While stocks were heavy, with net declines IN
the greater number Of issues at the close, there
VAS no pressure to sell, and there was no
Indication Of important genuine liquidation.
Traders were naturally bearish in the early
dealings. owing to the expectation Of bad
hank statement, and the publication Of the fg-
rres later in the morning caused dissppoint-
rre1t in the bear camp, because the heavy loss
/, cash indicated by Fridays estimates was
about cut in two IN the statement Of averages.
The average system which generally misrepre-
suts bank conditions, failed to show the full
;ess sustained but even the figures given in the
Clearing House exhibit were UnfavOrabe enough
% cause a chill among lightly margined holders
n stocks Cash decreased S4,S43,OO0 There
vas. contrary to expectation, no important con-
traction in loans. an UnimpOTtant decrease of
50 400 being recorded. Deposits decreased 81
gl29OU and the result of all changes was a
loss in reserve above legal requirements Of 3d.
1910. 10 1851 800. compared with S9975925
= YEAR ago and S14SO1O 900 in 1901. In the last
half hour stocks rallied throughout the list and
n d number Of cases early losses were complete
y recovered, while a few shares showed small
net gains as compared with Fridays closing.
The heaviest dealings were in AmaIgamated
Copper Atchison. st. Paul. Erie Missouri Pa
cifc. Pennsylvania, Rock Island, Southern Pa
ridc and Wabash preferred. The Wabash
shares were heavy features on realizing sales.
It was said in certain quarters Of the Street
that the bull speculation in these issues was
over for the present.
II the Aldrich bill should become a law at this
session OF Congress, or at an extra session, the
benefit 10 the local money market would hardly
dsyelop at once. save the sentimental benefit
that would doubtless be reflected in a sharp
rally in stocks. If the Panama Canal treaty
is ratified the government will be compelled to
raise SJ0OO0OOO under the terms Of the pur-
chase agreement the greater part of which will
doubtless be supplied from the open market by
the safe Of bonds, by Withdrawals Of govern
nlenr funds from national banks or by direct
payments from the available Treasury sur
plus Money market conditions are not at all
alarming bit the various factors in the situa-
zion are not reassuring for the traders in stocks
who desire 10 operate on borrowed money. A
period Of higher rates for loans appears un-
avoidable Holders Of good stocks, by exercis-
ing patience viii doubtless secure desired profits
later on in the spring. perhaps after the usual
return flow Of currency from the interior be-
gins. There is no reason in conditions govern
ing the worth Of investments for bear cam
psign al present but powerful operators may
be able 70 force enough liquidation to bring
about d lower level Of values. People VINO can
afford to buy on declines should eventually en-
Joy handsome profits from their operations. In
April money will come to Eew-Y ork from the in
terror, and if the necessities of the situation re-
quirs further assistance gold will be imported
from Europe
The report Of the Pennsylvania Railroad for
the year ended December 81 is a trustworthy
indication Of the remarkable expansion in the
country's Industrial prosperity in the last year,
while the recommendations in the report regard
ing appropriations for betterments in the next
three years reflect the confidence of conserva-
I've railway men in the stability Of the coun-
tEy's present business foundation. 1t is pro-
posed to expend on improvements $6IOOO,OOO
N order 70 increase the company's power to
handle the gain in traffic that is expected TO
develop in the coming three years The need
of increased facilities has been demonstrated
Tor the last half year in the extraordinary
uafdc congestion on the cOmpany's lines ana
here is room for doubt over the wisdom in
Putting vast sums Of money into the property
az such expenditures will add TO the roads net
earning power. and as a consequence accrue to
he benefit of the stockholders. The Pennsyl-
Fania system is in the hands Of able hnanciers
and railroad men OF rare ability. Results from
opersfions in the last year reflect not only the
growth in industrial activity in the United
states, but also a management ready 10 see ana
g take advantage Of opportunities thaI Suggest
chances for securing and handling business OF
enormous proportions. The Pennsylvania hall-
iaad taps all the important industries IN the
.oantry and its earnings are therefore, IalthLul
,Fade barometers. In 1902 gross income on
aneE east OF Pittsburg reached $112,663,o'SO an
increase Of 81 :}33. .j;S4 over the heavy record
q 1901. while net earnings were $37. .612 .25S, a
gain o. 81 J42 COS In addition TO operating eX-
Pelses Of ST5Ojl. OIL, S12JOO0OO was spent for
betterments. After dividends OF $l2,262, ,43l'
there was a balance Of S5JO,943 to be carried to
NE credit Of profit and loss account, which IL
Row S24. 4.I42, 724. The full report Of the C0nl-
hany which was published in The Tribune yes
te7day. is worthy Of the careful study Of every
hFeEJor and business man in the country.