The Montgomery advertiser., 1903-01-04
WALL STREET REVIEW
TRADE APPARENTLY IN THE
 HANDS OF PROFESSIONALS.
Whole Railroad List Weakens Sharp ly Under the showing or nX-
 penses and Receipts of the
 Pennsylvania in November.

4NcW 1oTh, Jan. o.--OpeCuldufe SeIll- ment underwent several rather abrupt transactions today. Trading apparently was in the hands of professional opera tors, almost entirely The first distinct listless fluctuations, followed the publi- cation of November earnings for the Pennsylvania Road. The rate at which the rise in operating expenses in this representative system was seen to out, strip the gain in gross earnings served to cause doubts by a similar tendency which has become general throughout the railroad world. The Pennsylvania lines directly operated showed an in- crease in gross earnings TOT November or S691, 300, but expenses increased $l,- 363 100. so that net earnings decreased $6n 600. On the lines west of Pittsburg and Erie there was represented an in crease in gross earnings of S9S, 800. with a growth of s50S,200 in operating ex- penses, resulting in a decrease in net earnings of $414.60O. The whole railroad list weakened sharply under the infiu- ence of this showing. Prices in some im- portant stocks receded to point or more below the last nights close. There was an immediate recovery on the receipt or the bank statement. Such good show ing Is almost unprecedented for the first week in January. That the banks should have been able to get through the Jan- uary settlement, which required sources nexcess of all previous records, with merely nominal increase in loans, was in itself a pleasant surprise to those who had felt nervous about the money situa- tion In addition, the drain In cash for the week was s, ,435,000, which Is almost a million dollars in the excess of the largest preliminary estimates. The re-de- posit of cash by the retail shops, making up the proceeds of Christmas trade, is attributed as the cause of this showing. Amalgamated Copper was notably firm throughout with the Steels. There was a slight tremor of uneasiness manifest in Mondays stock market when the money rate rose to 15 per cent, but after that, the tone became strong and conf1den and the street seemed to be dissipated. The year closed with fairly exultant spirit among operators. The dominant influ- ence in causing this feeling was the sense of danger escaped. The end of the year was looked for and with keen anxiety for several months and 1t was not until this week that assurance became strong that the preparations for the emergency had been adequate and successful, al- though the fears of a money crisis had been much relieved by the announcement of the formation of the bankers pool to supply $50 0,000.000 to the call loan market in case of urgent need. special cause of Encouragement was the small impress son made upon the loan account for the banks by the forced liquidation In the stock market. Holders of stocks had am- pie reason to know that enormous re- ple reason to know that enormous re- payments of loans had been effected to the banks, while the weekly statements showed no corresponding reduction of loans. The last named condition of mo- ticeable banks issued by the comptroller of the currency showed that loans act ually had been increasing over the coun- try during the present liquidation in the stock exchange.
 Some stocks touched the high point of the year during the first two weeks Of September, and since that time have tall- en to the lowest of the year. Yet To, hoY at a toYI1 with that of September 18th showed that the clearlngs of the banks had contract ed their loans in that time less than $35, 900 600. It Is now believed that the funds are called from the stock market were used to a large extent for the pay ment of foreign loans maturing. Author tiles here and abroad agree that there has been a reduction of bankers indebt- edness to Europe to the extent or mll- lions of dollars in the last few months.
 The repayment of these loans has re- suited in greater ease in securing accum- ulations abroad during the last week or two. Another disquletlng feature was tne unexpected call upon several bona unoer- writing syndicates for subscriptions wnich 1t was believed would be necessary rms evidence of accumulation or unmarKeted bonds left in the hands or synclcates was supplemented by reports of the dls- solution of some syndicates and the ols- trtbution of their holdings Of bonds among the members to be sold at loss for the operator. 6uL tnS SOnNASNAOn grew during this week that liquidation Of this character had been accomplished ana the preparation for the year and fequlre- ments met. There was some large puy- ing of stocks by that portion or the spec ulative community which has been main tained that the tightness of money was the only factor of depression of securl- ties. The confidence that normal relax alton of money conditions will follow In January serve as an additional re-assur- ance for this element. A consloeFAple short interest which had been aWaunS a money squeeze to cover. also, were UT gent buyers There has been eVeloent De- sides. an improved sentiment on the part of another speculative element in the se- curities market, which has entertained rnIsgivings that the country has reacheo the Continuation of the wave of prosperity and that a long period of reaction IS 10 he faced. The present high range or nrices, the advancing tendency or operat- ing expenses. the evidence Of unrest on the mart of labor and the declining ten dancv of net earnings of railroads re- f,ected in current reports have formed inc basis of the reasoning or IhlS party.
 More confidence was professeo also that the advances in freight rates 10 so III effect with the new year VIII pc ehectlNe in recuperating the net earnings ,--
 How far foreign obligations that nave heen deferred but not yet dischargeo, Will affect the future market Tor U dUrelsn e1- change is vet undetermined The prlncl- nal activity in bonds nave pSen III tn9 Speculative contingent with ldlrly sooo absorption. a,,,, a,d in fair da-