The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1903-11-22
STOCKS AND BONDS.

4
New York, Nov. 21.-Trading in stocks
was of very desultory character today,
and the net results in the way Of price
changes were not important. The ruling
! tone was one of depression. but the mar
ket made a considerable recovery and
closed firm. The assertions that the pass
ing of the dividend by United States Steel
common stock and the reduction of that
on the preferred stock had been decided
upon. induced new selling of the United
States Steel securities, forcing the pre-
ferred stock more than a point lower and
the second bonds nearly a point Both
rallied in the late recovery of the mar
ket. The bank statement was another dis
couraging factor. The loan contraction
amounted TO $500. ZOO. The deposit ac-
count was further contracted by shrink
age Of cash reserves of e., IA. 500. so that
while the reserve requirement was re-
duced to the extent OF 0l.520. AZ the sur
plus suffered to the extent OF 81 POI O75.
bringing OF down to 1881 $50 A year ago
there was a surplus Of SIS. 529, 975, and two
years ago of $14. s.925. The course Of
the money market makes little obscure
the recovery iii foreign exchange II is
now evident. however, that the accumu-
lation Of exchange has in view the re-
quirement for the payment of $40. 600 to
the Panama Canal company in connec-
ton with the settlement of the canal
question. 1t has been noted also that the
value Of imports of dry goods and mer-
chandise at New York this week have
risen si.so0,0 900 over those of last week
while the exports of grain for the week
are nearly 10000 bushels less than last
week
Prices Of stocks have turned upward
this week in spite of some unsettlement at
times. Transactions have been largely
in professional hands. and for the most
part devoted to covering of short con-
tracts. put out in the previous decline.
The most effective influence in turning the
market was the foreign exchange market
The rise in value of cotton exports in
October of 100000 over those for Octo-
Der last year accounted for the rise in
that product. At the present high price
OF cotton il is evident that the marketing
OF the product will create n vast total Of
credits to be liquidated for US by for
ports and the prospect Of expanding iron
and steel exports are additional factors
to be reckoned with in estimating the
future of the exchange market The
heavy requirements thus thrown on the
exchange market has made it delicate
handling of the situation was required to
avoid an upset OF foreign money markets
which might affect unfavorable the best
over $4,000 in gold which has been
taken from London for New York is not |
TO be supposed TO represent the sense Of !
the trade balance in our favor. The resi- /
due is accommodating to our credit in for
eisn money markets. The purchase in
New York by bankers of exchange bills
for investment is Z process of leading by
New York 10 foreigners. IN effect. Com I
petent authorities estimate that the pres
ent volume Of our Indebtedness 70 for
eigners IS less than for many years past
in contrast 10 the high leve! u such in
debtedness OF $4Oo co0.ul0 within two years
past Much OF this liquidation had been
forced during the painful period of vio-
lent exchanges There was time early
in the year when sxiety over the resources
OF our money market was such that
opinions were heard that nothing bat
failure OF crops and the resulting light
ming Of requirements on the money mar (
ket could save the market from q money f.
panic.
on the contrary normal requirements 4
have been met for crop purposes as well /
as eferCencies Tor the financial troubles I
al Baltimore Pittsburg and st. Louis .
without disturbing the tranquility OF thu .
money market The opinion IS now grow .
ia- that funds may Become plenty il .
New York by the turn u the new year. +
The contraction n trade and Industry i
now going on is looked 10 to increase the (
accumulation OF Idle funds IL reserve ,
centeTz.
some earnings 81 railroads. while hold 4
:nx above those for corresponding periods Z
Of last year. show a decline IN The ratio +
OF increase For the first six months
OF the year increases IN railroad gross
were al an average rate %
Il per cont For August the rate ~ IL
erase fen 10 PEI cent, Tor SepteEnlse-
% : per cent ard for October 10 little
over p.r cent The rate ot increase
thus far IN November 10r smaller num-
bers OF roads representing = above { Per
cent aIreI States Steel has o~ei4 d.
fected also by The Gistinusnce OF the pro-
cess OF conversion OF preferred stock into
second mortgage bonds. The cocrse II The
preferred stock has o@~a downward dur
ing the conversion process r. spite q he
demand Tor accumulated b. The sy-ndi-
cate purpose % conversion Therefore the
preferred stock and n tsc1 all TIE So
cr-ities % the corporation rallied snsrDiy
OF announcement Il the CESSATION q tlc
conversion.
The better prospects IN the money rsar-
.et have been n favor Of the bo-d mar
set. but prospects % large additions 70 the
list Of railroad bonds has been tetrin-nt
influence n business
United States = declined = zad the =