The Montgomery advertiser., 1903-11-08
WALL STREET REVIEW
STEEL DIPS TO PREVIOUS LOW
 RECORD.
Its Easy Recovery, However, Made the Drop Not Very Impressive On the General List-Mar
 ket Not Broad.

NEW YORK, Nov. 7.-United States Steel preferred preferred dipped to to yesterdays low record i'm ket today. but its easy recovery on dealings almost light on the decline, making the drop not very impressive pressure. relieved the market to some extent and prices were in- clined to harden. The railroad list was in fact but little affected by the opening dip in Steel preferred The upward movement was ex- tremely sluggish and dull and the market showed little breadth or animation. Reports were in persistent circulation that the United States Steel Corporation planned a cut in all grades of steel-products on the basis of the lower price for billets. but all attempts to se- cure official Information on the subject wers repeled.
 The attention of the stock market community has been largely devoted to the condition and prospects in the iron and steel trade this week and the renewed outbreak of heavy liqui- dation In the United States Steel securities of the money market has been a contributory cause to the paralysis of demand for securi- ties. The interruption of the election day ho1i- day also had the usual effect of dscouraging speculative activity, except for some profess sional operations in the NeF York corpora ton stocks which were omthally based upon the political contest in the fity. The engage ment of million dollars f& gold in London for shipment to New York Aas made the oc- casion for some buying of stocks on Monday and early on Wednesday after the holiday in- tervai. on the assumption that automatic re- lief from other demands upon New York cash supplies was thus insured. but the later weak ness of the United States Steel stocks and their preponderance fin the dealings dominated the whole market and carried prices downward The heavy liquidation in these stocks was commonly attributed to trade conditions, but suggestions were also heard of motives from the financial side for the selling. It was cur rent rumor that in the street some of the sell ing was due to changes in the executive de- partment of the corporation at different times crop of runors also of further changes to come in the executive department and of re- sulting friction and antagonism. The infiu- ence of continuing operations of the bond con- version syndicate was also subject for consid eration The statement to the Stock Exchange in connection with the listing of the corpora tion's second mortgage bond revealed the fact that some 866, 0oO, 900 of preferred stock was still available for conversion into bonds with the privilege Of conversion exclusively in the syndicate. The exercise of this privilege would presumably involve the purchase of preferred stock by the syndicate and the increase of the market supply of the bonds resulting from the conversion. Yet the pressure to sell the preferred stock far outweighed that to sell the second bonds. but gave no signs of absorp- tion of syndicate account. The difference in the prices of che preferred stock and the bonds was thus considerably extended and this diff ference measures the profit to the syndicate of the process of conversion, aside from the 4 per cent. commission insured to them under the contract with the corporation the par value of the preferred stock converted. The incident which was most effective In disturb ing sentiment over the iron and steel trade conditions was cut in prices cf steel biIlets of S4 per ton. Fears were felt of a general re- duction In prices for all lines of steel products and a process of contraction throughout the State. Plans for further restriction of output a decrease in the scale of wages and rumors of large reduction in the force of iaborers employed helped to feed the apprehension of the speculative public over the future of the in- dustrials of this class Stocks of an indepen- dent iron and steel company were affected in sympathy, though less acutely than the United States Steel securities. The continued heavy outso of currency to interior points caused c resumption of the conservative attitude of bankers and money lenders, which had begun to be somewhat relaxed with the long delay in the crop moving demands for currency. This demand. though belated, has risen this week to rather above the normal of preceding years. The heavy movement of cotton and the high price at which the crop Is selling has increased But the volume of exchange against It's exports has been correspondingly large and the offer. ings of cotton bills in the exchange market have kept the sterling near the gold import point. Foreign money markets have made some show of opposition to the New York pressure for gold, the Bank of England's selling price of gold and Great Britain advanced. But con- fdence is felt that any approach to stringency in the New York money market would lead to prompt relief by gold shipments.
 The weeks events in the 1sthnlus of Panama have passed without apparent notice fin tho stock market in spite of the importance at- tached to the Panama Canal project fin It's bearing on trans continental freight traffic. Reports of an adjustment in the relations bo tween Japan and Russia in the Far East have had some reflected effect from the London market.
 The tightness of the money market has re- duced the demand for bonds and the recent average of the business in that department has been considerably demolished. Prices have n- clned to yield with the falling off in demand United States 2s declined A per cent. below the closing call of last week.