The San Francisco call., 1903-01-04
EASTERN MARKETS.
Nezv York Stool Marker.


NEW YORK. Jan. 3.-Speculative sentiment
underwent several rather abrupt transitions
to-day Trading apparently was in the hands
Of professional operators almost entirely. The
first distinct movement in the market after
period o. hstiess fluctuations. followed the pub
lication Of the November earnings OF the Penn
sylvanIa Railroad The rate At which the rise
i1rthe operating expenses n this representa-
tive railroad system was seen 70 outstrip the
gains IN gross earnings served TO enforce
doubts caused by q similar tendency which has
become general throughout the railroad world.
The Pennsylvania lines directly operated
showed an increase in gross earnings for No
vomber OF 1851, 800. but expenses increased ST.
5t3l 100 that net earnings decrea sed S571. 900.
On the lines west OF PittsburE and Erie there
was reported an increase IN gross earnings Of
S93 900 with a growth OF s50s. 900 IN operating
expenses. resulting IN a decrease in net earn
inss Of S414-59 The whole railroad list weak
ened sharply under the influence OF this show
ing. Prices in some important stocks. includ-
ing Pennsylvania, receded point or more be-
low last night There was animated re-
covery upon the appearances OF the bank state
Hlent, with its unexpected recuperatiOn OF S3.-
Ga $50 in the surplus reserves Of the banks.
Such a showing is almost unprecedented for
the first week in January That the hanks
should have been able 10 get through the Janu-
ary settlement. which required resources IN ex-
cess OF all previous records. with q merely
nominal increase II loans was N lIselL a pleas
snt surprise 70 those who had felt nervous
about the money situation The recovery in
prices met renewed selling and the market
closed easy ard WITH net changes mixed.
Amalgamated Copper and United States Steel
were notably firm throughout Manhattan
company by the State Railroad Commission Tor
increased equipment
There was a slight tremor Of unsasiness
manifest in Mondays stock market when the
money rate went up 70 = per cent, but after
that the tone became strong and confident and
the vapors which had been hanging over the
street seemed TO be cissipated- The year closed
with q fairly eXultant spirit among operators
in stocks. The dominant influence in causing
this feeling was the sense OF danger escaped
The end Of the year was looked forward 10
with keen anxiety for several months, and it
was not until this week that assurance became
strong that the preparations for the emergency
had been adequate and successful, although the
fears Of a money crisis had been much relieved
bg the announcement OF the formation OF the
bankers pool 10 supply 500, ,UO0, 600 OF funds to
the money market in case of urgent need A
special cause Of disbursement was the small
fTllrressfon made uDon the loan account OF the
banks by the forced liquidation in the stock
market Holders Of stocks had ample reason
20 know that enormous repayments OF loans
had been effected TO the banks, while the week
y statement OF the New York Clearing house
Association showed no corresponding reduction
or loans The last statement of the condition
OF national banks issued by the Comptroiler of
been Increasing the country over during the
period of drastic liquidation on the stock F,x-
touched the highest price OF the year during
The first TWO weeks Of September. and since
that time have fallen to the lowest OF the year
let a comparison OF last weeks bank state
ment with that OF September Is showed that
the Clearing house banks had contracted their
loans in that time less than S25. 600. 600 Ii is
now believed that the funds recalled from the
stock market were used % a very large extent
Tor the payment Of foreign loans maturing
Authorities here and abroad agree that there
has been REDUCTION Of bankers fndebtesin
Europe 10 the extent Of thousands Of mill
hons OF dollars IN the last few months The
repayment of these loans apparently has re-
suited in greater ease In securing aecommoda-
tion abroad during the last week or tvvo
There some large buying Of stocks
by that portion Of the speculative Community,
was the only factor making fer depression ~
81 curities Confidence that normal relaxs
tion OF money conditions Will follow in Janu
ary serves as additional Assurance for this ale
rlent A considerable important interest which
ias been awaiting a money squeeze to cover
also was urgent buyers. There has been eyi
dence besides OF an improved sentiment on the
part Of other speculative contngents which
had eutertaired misgivines that the co5nfrv
had reached the elimination OF the wave Of
prosperity and that long period of Reaction
is 10 BE- faced The rises in the prices Of
copper and OF petroleum were cited as
against the contention that the rise in prices
0f commodities has eliminated More CONF
1ence prcfessed. also hat the advances
YEAR viii be effective in recupeFating the ne.
earnings Of the railroads. How far this re-
vision OF continent has extended beyond the
professional operators in stocks who were the
principal buyers this week. will be demon
strated when the professionals come 10 mark