The Savannah morning news., 1903-11-02

new 1Ork, OCt. Sl.-6dIlhS mere dtlu
abroad awaited themselves generously
of the chance to get rid of consider
able collateral held by them for ac-
count of friends and clients. The rail-
ly in the stock and bond market was
not unwelcome to the banking institu-
tions as it enabled them to tighten
their loads materially. There are times
when banks can become overloaded
with securities and when this class
of collateral becomes almost as UNI
desirable and unsafe as real estate
in seasons of depression. There has
been narrow escape from a dangerous
situation in this respect, but the mon
ey lenders are emerging from their
difficulties and conditions are de-
cidedly improved from the conserva-
tive banking view point. The insti-
tutions and individuals who have been
selling their securities to raise money
and reduce their obligations include
those of all sizes and grades of i'm
portance. The result is that an accumu-
lation of cash in quarters where there
is an absolute necessity for capital
to be earning money and these inter-
ests find themselves confronted with
the lack of a desirable borrowing de-
mand. This condition accounts for
the inquiry which has sprung up for
bonds, an inquiry so urgent that it
has stimulated considerable specula-
tive activity in that quarter Many
experienced traders have been putting
| their speculative capital in low priced
bonds during the last month believ-
ing that good returns can be secured
on that kind of investment quite as
well as on stocks and that the outlay
Il - "A Ill
suits have proved this to be the case.
Insurance companies and saving banks
have been the largest buyers of bonds
and many millions of dollars of their
cash have gone into that class of Sc
curities Insurance companies are
obliged to keep their capital busy and
so are saving banks in order to meet
obligations to their clients and pay
interest.
The belief is growing that the UNDER
lying tendency of stocks and bonds
will be slowly in the direction of bet
ter prices. 1t is the expectation that
this Improvement will be exceeding
ly gradual and will be felt first and
strongest among the dividend paying
railroad issues and among the low
priced stocks that give best promise of
probable development looking to until
mate dividends. There are many such
which are selling all the way from 20
per cent. to so per cent. of par value
The indications are that price fiuctua-
lions for the next few months will
be within narrow ranges and that there
will be continued dullness. Commits
sion merchants, bankers and brokers
anticipate this condition of things and
are planning for a rather tiresome
winter. Having gone through it's own
sweat Wall street is settling down TO
wait with as much patience as posi-
BILE for the rest of the country to go
through similar experience. This
process is clearly going on and time
VIII De required for completion of
the liquidation.
The view commonly taken of the
broad situation by those whose judg-
ment is OF greatest value is that the
country is in no immediate danger of
serious and protrated reaction II is
now almost certain that the worst is
over In the securities markets. and that
the remaining weak spots are located.
While there Is something of chill on
industrials and the great mercantile
trade the aggregate volume of BUSH
ness Is still above normal What is
regarded as the best feature of the
situation as it has developed is a rea-
sonable certainty that the wave Of de-
preston has checked the aggressions
of organized labor and given CAPITAL
with construction enterprise without
further risk OF being tied up by walk
ing delegates and their associates. La
Dor unrest has been for a year or
more consI, cred the most dangerous
element in che business situation, and
now check has been put to the So
called unreasonable insistence of the
agitators in that field. Permanent peace
is looked for, something which must
inevitably work to the general good.
1t is time that the country was taking
rest--time that people were giving
themselves a season for sober reflection
and a pause in the wild rush to ac-
complish ten years work In few
months. The pace was too fact.
Amalgamated Copper has contribut-
ed to the enlivenment of the Wall
street situation all the week. That
stock was "pegged" by the Standard
Oil specialists in control of the prop
erty, and to the surprise of many pro-
fessionals 1t experienced a sharp ad-
vance after the adverse Montana de-
cision, instead of breaking all to pieces,
as anticipated. A big short interest
was squeezed and now the talent Is in
doubt as to what course that property
IL likely to take in the near future. In
the metal market the price of raw cop
per has been washed up both here
and in London, on the theory that a
suspension of operations in Montana
will lead to an exhaustion Of supplies
and the establishment of quotations on
a permanently higher basis 1t is
claimed that there are few buyers for
the metal at the advanced figures made
and that the play is entirely manipula-
tive. Specialists IN Amalgamated Cop
per are having some trouble In making
1T clear why that particular stocks
should rise. as a sequence to entire
stoppage in production. on the theory
they are operating the argument might
hold good that If the stock is entitled
to a 5-point advance because the mines
shut down for six months II is logically
entitled to so or Hotpoint rise should
the mines be abandoned altogether. The
total extinguishment of the mines
might even put Amalgamated back to