The Montgomery advertiser., 1903-02-08
WALL STREET REVIEW STRENGTH OF WA
 BASH A FEATURE.
Contested for Prevailing Influence with the Very Poor Showing Made in Statement of
 the Banks.

strength of the Wabash securities in the
 market today contested for prevailing influence with the very poor showing
 made by the banks. The influence of the
 bank statement was lessened by the noto-
 rious ease with which loans can now be
 obtained. 1t Is well understood also that the statement was complicated by the
 change in the capital account of the
 Western National Bank due to merger
 operations. It is estimated that the loan
 account is overstated to the extent. of
 more than $4, 900, 900 by reason of this ad-
 justment. The loan extension is still left
 at a large figure, and it is believed that
 some of the effect of the $35,00, GOO Penn
 sylvania loan expansion is thrown over
 from last week. The $7.2S4.S00 decline in
 cash reserves is more than twice as much
 as was indicated by the known move
 ments of money. The $3,000,000 payment
 to the sub-treasury on account of the Central Pacific note was made last Satur-.
 day and not figured for a full week in
 the averages. The decline which followed
 the publication of the statement develop
 ed so large a demand from the short sell
 CTS yesterday that an effective rally fol-
 lowed and the market active and firm.
 The WabaShes were the feature of the
 market. The movement was apparently
 based on the news of the steps taken to-
 ward consolidation of control of the
 branch lines which are designed to form
 the Atlantic outlet for the system.
 Other members of the Gould group were
 strong in sympathy and were helped by
 the Missouri Pacific showing of an in-
 crease in gross earnings for the fourth
 week in January of $s1S,e2o, or more than
 p per cent as compared with the corre-
 spending week last year. Wabash pre-
 ferred rose an extreme of 12 in the late
 dealings. The debenture B bonds were
 also in large demand, single sale of
 Buffalo, Rochester and Pittsburg at an
 advance of 9 1-4 over yesterday attracted
 attention. Sugar was run'up a point in
 the final dealings.
 The week has seen some new develop
 mentS Of interest in the financial world
 and the stock market has not been en-
 tirely without response. Prices are
 generally higher and there has been an
 expanding volume of business fin securi- ties. It is suspected, however that the
 operation in stocks is still very largely
 professional although the leadership of the market has been palpably more vigorous and organized on wider lines,
 ti with larger lnI resources employed; It is
 directly affected by the actual news developments of the week have not shared equally in the market and in some cases
 have been subjected to pressure in spite
 or news developments in their favor. This was notably true of the Rock Island
 stocks. There has been pretty cons.an.
 selling too of Pennsylvania following the rather unexpected announcement of the putting forward by year of the privilege
 of conversion of the 1-2 per cent bonds
 iato stock. There has been large activi- ty in the dealers and the present large earnings of those companies as a result
 or the conditions growing out of the an-
 thracite strike are not believed to fully | account for the large transactions The Wall Street public is still in expectation | ot steps to be taken which will cause a change in the status of the Erie. No definite light has been thrown on this subject but rumor and conjecture have continued busy with it. Importance is attached to the news of an arrangement between the Rock Island on the one hand and the Union Pacific and Southern Pacific on the other. The exact terms or the agreement have not been learned but 1t is generally assumed that Rock Island is assured of an outlet for It's traffic to the Gulf of Mexico on the one hand and the Pacific coast on the other while It is believed that any projects which might have been in contemplation Tor the extension of independent lines to secure the outlets are thus abandoned. The Tear Of new lines to the Pacific coast as extensions for existing lines without an independent line has been a disturbing
 feature among the Pacific lines for some nme past. This step toward an adjust- ment Of community of interest on the | subject is regarded as favorable to secu- rites in the roads concerned The subject is not entirely exhausted by this step and there remains some ques-
 ton or the effect of the new arrange mentS upon the interest of other sys- tems. especially the Gould Southwestern. While the question of this systems far
 western connections is thus brought into
 view the permission granted to the Wabash by the Pittsburg authorities for
 its entrance to that city clears up a problem that has been an obstacle to it's eastward progress. Another long stand ing cause of speculative hesitation and repression is believed to have been clear ed up by the decision of the New ter sey Court of last resort in favor of the right of the United States Steel corpora- ton to issue bonds for the retirement of part of it's preferred stock While there Is some difference of opinion as to the
 benefits of this plan in itself there is no difference in the connection that the ty-
 ing up of the financial measures looking to the adoption of the measure which re- suited from the litigation has been a det- riment to the securities of the corpora ton. The effect of the decision of the stock market has therefore been favor able The clearing up of the status of the Northern Securities Company by ju- dlclal decisions which is still in litiga- tlons is awaited to free from obstruction the production of plans in which great masses of securities are involved and 1t | Is believed vast sums of capital are to some extent tied up. It is the conviction
 In wal Street that the lethargy of the l securities account for a long time past mas been due in no small part to the sus-
 pended condition in which these great
 protects nave been held as well as others l
 ing determination of the legal standing | of the companies involved in litigation
 A feature of the week has been the ac- | uVlty and strength of the metal stocks | led by the coppers, buy the rising course | ot the metal and confident trade predic- | ttons for the coming year
 | Companies concerned with the silver | and lead trade have also received atten- ton through the demand for their shares
 in the market. The underlying cause of
 the awakened speculation is undoubtedly
 the increasing supply of funds available | Tor speculative purposes due to the sea-
 sonable refiuX of funds to the reserve centres. The New York clearing house | authorities have taken this favorable on portunity to advance measures that inc l trust companies shall enlarge their cash | holdings. The growth in the number of | trust companies and the expansion of | their deposit banking business has called | increasing attention to the question of | the adequacy of their cash reserve which l amount on the average to less than Der | cent of their deposits. The trust com | panies are to be required to increase the l per centage of their reserves to 5 per | cent by June next and ultimately to a minimum of 10 per cent in June, 1904, It | Is pointed out that this will necessitate the locking up of perhaps $1o,U0J,00O of cash in trust company vaults by June l. next probably by withdrawing from vaults of clearing house banks, where the trust companies now keep their funds on deposit. It is considered that the ne cessity of this additional security was
 demonstrated by the over expansion Of credits. which developed last fall. But credits for the coming fall will be re- ducad hv a large amount. The effect