The Montgomery advertiser., 1903-02-15
WALL STREET REVIEW
TRADING NEAR THE LEVEL OF
 STAGNATIoN.
Movement of Prices Had Little Significance Except of a Mega tive Character Selling
 Pressure is Relaxed.

ui8I hSI tOudy. It was tDI uuth tU6 ldSl half hour of the session that the first sale in either sugar or Manhattan was record ed. Up to that time there had been only one or two transactions in United States a market can have little significance un- less of a negative character. The selling pressure. which was notable yesterday was relaxed today and there was even some evidence of support here and there, especially in the Gould group in which Wabash preferred was lifted nearly a point. General Electric rose further on alleged expectation of berefts to stock holders to accrue from the purchase of the Stanley Electric Company, perhaps by new stock subscription rights American Smelling advanced an additional l S-4 with itimations that the improvement In the silver market was to the advantage of the company. The signing of the pro- zuelan dispute to The Hague arbitration court was cited as a reason for some of the buying. The liquidations of the Fries seemed to be checked and there were dealings in the new convertible bonds on the curb when and where, at 90, as com pared with the proposed issued price to stockholders at N 1-2. Prices receded a fraction on the appearance of the bank The lean increase of s11,274sOO is not ex- cessive compared with other years in the corresponding week. It is believed that some of the borrowing has been for the pShrpsse h,cs of rspsy,ns foreisn obigattons The surplus of $15,529, 675 compares with $13, 66o $50 at this time last year, and $12. S52. 450 two years ago.
 After squirt of activity and strength on Monday. the stock market fell back again into q condition of apathy and lethargy. This was accepted as a new demonstration of the futility of the ef- forts of speculative combinations and pools to awaken interest in stocks on the DATt of fhA nr1fgfda ntfflir Thaaa Ala. ments had in their favor the continued ease of money conditions and especially the introduction into the Senate of the Aldrich bill for liberalizing the provision for Government deposits with national banks, in preventing stringency in the money markets during the coming fall. The measure was discussed with much satisfaction in Wall Street for this rea- son. But Its effect on securities did not prevent the elapse in prices which fol- lowed the attempts of professional opera . tors to realize when they recognized that there were obtaining no outside following frcm all channels of trade were equally unavailing to awaken speculative inter- est in securities. The somnolent state of speculation is puzzle to the profess sional element in view of the apparent promise for future prosperous conditions. The importance attached to the Aldrich bill in current financial discussion prob- ably offers a key to me of the reasons VI tfO HtSlLduODS ln the STOck mar ket. It Is now generally recognized that the money market passed through a crisis last fall which haG many dangerous elements in 1t. The sSo taken by the stsfe sns 0f 1ha pond in accepting cu-ity for Government deposits was potent factor in avert ing a catastrophe. The problem of avoiding lock-up of surplus government revenues in the treasury grows in diffi- culty every year witt: the growing scar city and augmented price of government bonds upon which all measures of relief depend under the law. The device of purchasing governm ant bonds at a pre- mium in the open market has come to cause displacement of bonds deposited to secure circulation, thus operating to contract the circulation at one point in the proportion 1t Is expanded at another. It Is with great relief therefore that the financial world sees the prospect of the deposit of government surplus funds with banks at l 1-2 per cent interest in the security of State, municipal and approved railroad bonds The removal of the inhibi- ton against deposit of customs receipts with the banks Is also calculated to be of special benefit to New York banks, as the bulk of the customs are payable at this port. The making available of the bonds to be issued for construction of the Pan- anna canal for Imposes of security for bank notes and government deposits is an additional factor for expansion of cir SuIdtlon. BuC JnlS promise or alleVia tiOn of possible money stringency again this fall may not more than offset other fac tors on the opposite side.
 For one thing the payment of $40 0Oo, 900 to the Panama Canal Company sharehold- CTS and of $10. .000, ,000 to Colombia must be provided for in the case of the passage of the Panama canal bill It is not con sidered probable that a bond issue will be authorized For this purpose. in view of the large current revenue surplus en- loved hy fhA ar ba
 lation of an additional cash balance in the United States treasury in pcepara- ton for these payments or a withdrawal of government deposits with the banks i'd week of the requirement by the New York Clearing House for additional cash reserves on trust companies clearing through that institution calls attention to another phase of the financial situation
 last fall. The pressure for credits and the withdrawals of deposits for circula- ton. 1t will be remembered, kept the clearing house banks near to their legal reserve limits and materially expanded the loan accounts of interior banking institutions and, presumably, of the trust companies. Practically the only reserve maintained by the trust companies was on deposit with the clearing house banks and the reserve of those institutions there fore constituted the ultimate reserve for meeting demand requirements not only from their own depositors but those of the trust companies and banks away from the reserve centers. This weeks ac- tion by the clearing house formally con demns the conditions of last fall as un- sound. A conformity of deposits in cash by the trust companies by June l next, 1-2 per cent by February next and 10 per cent by June l, 1904 It Is reported by authorities in the foreign exchange mar ket that many millions of obligations to foreign lenders have been paid of since January l, this correcting the over exten- sion of credits in that direction which left the local market vulnerable to calls There is evidence in the bond department of the Stock Exchange that bold under WI ting syndicates which weathered the stress of last falls money market have been marketing their holdings the market price in one instance running 1 to points below the syndicate subscription price to the bonds. The recuperation of the flnan- ctal position thus variously indicated may be matter of increase of confidence but # gives evidence of the diversion re- leased by the reflux of funds to other purposes than stock commitments and may help to explain the quiet stock mar ket. New requirements for credits ara largely shown also The railroad situation plainly requires the employment of addi- tional capital to handle the volume of traffic offering and to avoid freight con gestIon. The present ease in the money market is taken advantage of for these available supply of funds for stock mar ket operations.
 The movement of bond prices has been irregular this week, the principal activity has been in speculative issues. |. S. Ss coupon and new Is registered declined IA per cent, the old 4s and the 2s Is per cent as compared with the closing