New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-28
THE WEEK IN WALL STREET.


more encouraging outlook than they did In the
last week Of 1902. while the business situation
throughout the country is really sounder thah
I. was 8 year ago. although the current volume
Of trade may be smaller. Reports from the COM
r,ercial agencies railroad earnings and the op-
servations made by business men VINO nave
travelled from one end Of the country 10 tHe
other attest the strength Of industrial aftalrs IN
the United States and warrant the preolctloh
that there viii be no industrial collapse IN 4SV7'
Despite the adverse developments in the labor
situation this year and the heavy losses SUI
fered from the long decline of securities VaIues
ana from the breakdown IN many industrlal
concerns as for instance, the Shipbuhcing Trust
spd the Consolidated Lake Superior Company
the country has handled an enormous business
in the year at profitable prices. The labor stu
alton NAV grow worse IN the coming year. war
may break out in the Far East. the crops may
fafl and the from and steel trade may go 10
pieces These are possibilities that people may
consider II they wish but there are so many
strong factors IN the situation that the develop
,nent OF these alleged possibilities into facts
would not drive the country into bankruptcy
From the recent course Of values on the Stock
Exchange Il would seem as il the bear element
had been forced out of usiness. for the present
AZ least but as yet there has been no evidence
~ a revival OF outside interest in the market
II the public comes into the Street prices ought
20 run up many points. And II the puohc GOES
not speculate in January there ought TO be no
important decline. quotations, despite recent
advances are in most cases still at the bargain
level Stocks are concentrated in the hands OF
strong financial interests who have no idea OF
selling az present figures. Sound investment Is
sues may be brought TO yield AZ to 5 per cent.
~ hat
viii develop early in the new year as result
NJ the large disbursements of interest and diVi-
dend money at that time.
Spectators hoping for an active market
owing 10 these heavy disbursements, while they
also expect the renewal Of public buying In the
January market Leading interests are now
pointing 10 the fact that the iron and steel trade
presents more encouraging outlook ian II did
a few weeks ago. owing TO the stability that
has been brought TO the situation by the de-
cision of the manufacturers TO make no further
reductions in quotations. With prices on a
stable basis buyers will come into the market for
iron and steel and IL is expected in the trade
that large orders viii be placed by the middle OF
January in all lines, with especially heavy
volume OF business in the structural department
The United States Steel Corporation in the cur
rent quarter has made relatively poor showing
in net earnings, the falling OF as compared
with the same period year ago amounting TO
several million dollars. Early in January the
directors OF the concern viii meet TO take &C
ton on the dividends, and II is generally be
lieved that the common stock Will be with
drawn from the dividend column, while 1t is not
thought that change will be made in the rate
on the preferred The common stock is already
selling at a price which discounts the passing
OF the dividend, and II therefore is not likely
that a suspension Of dividends would have any
material effect the company's securities or
on the general market. Heavy railroad earnings
had a favorable effect Wall Street sentiment
last week and in a number Of stocks buying
could be traced directly TO the splendid traffic
results Fc- the first two weeks in December
earnings OF all the railroads reporting show a
gain OF per cent over the same time year
ago, compared with a gain of per cent for the
month OF November and per cent in October
or the companies reporting last week the
heaviest gains were made by the roads in the
South and Southwest. Southern Railway for
instance. showing an increase of nearly $4,000.
while Missouri Pacific enjoyed an increase Of
over $4,000. The most interesting statements
received last week were those OF the Vanderbilt
properties for the six months and for the year.
Owing 20 the large expansion in operating eX-
penses New-York Central for the first half OF
the fiscal year shows small falling off in net
returns but with the exception Of this company
all the Vanderbilt roads present Improvement in
ret earnings and in surplus for the last six
months. In the coming year New-Tork Centrals
income will be increased through the advance in
the dividend rate on the Lake Shore stock,
which has been placed on an per cent basis.
According 10 the opinions expressed by the rail-
road men IN various parts Of the country i'm
provement work on all the large lines will con-
tinue in heavy volume unless there should be
remarkably unexpected adverse developments
in the money market and in the labor situation.
The sale by the Atchison company Of S100O0000
OF mortgage per cent bonds. II is believed. is
an indication Of what may be expected Of other
roads before their work OF expansion in the d.
rection OF permanent improvements is com
pleted. According to the present position OF the
money market It looFs as If the railroads would
he able 10 secure all the money they want in
1904.
Call money was in good supply throughout the
week on a relatively easy basis OF rates, while
there were indications OF q material advance
IN quotations the end of the year The
reserve held by the banks IS n.Ich larger than it
was az this time year ago, and despite the
small reduction shown in Saturdays bank state
rnent there is enough money at this centre and
IN sight 70 encourage the belief Of an easy money
market for several months TO come. There was
no change OF Importance in the foreign markets
IN the week The Bank OF England's minimum
rate of discount remained at 4 per cent al
though the proportion OF its reserve TO liza biities
declined from 1910 per cent to $500 per cent
the loss being due 70 a large decline in bullion
The effect OF q war between Russia and Japan
on the money market is being discussed active
ly IN the home and foreign markets. and the
idea appears 10 prevail that hostilities would
be followed by irIner rates for loans throughout
the world.