The Montgomery advertiser., 1903-11-01
WALL STREET. REVIEW
BANK STATEMENT IS THE
 USUAL ENIGMA.
A Decrease in Cash of $s1 ,694, 800 Shown-St Louis and New Orleans Get Large Share
 of That Amount.

market observers. The statement reports number of estimates compiled every Friday of the weeks currency from the bank officials themselves. Yesterday one of these estimates the. week of less than s 3. 0oo, 900 and some of them ran to over 6 .ooo. 900. Last Satur- day the bank statement in its item of cash re- serves failed to show the estimated decrease by S4 GOO, 900. Under the workings of the aver age system last weeks discrepancy would tend to be corrected In this weeks statement The conclusion Is unavoidable that the actual show ing of the cash reserve item in the bank state ment if 1t correctly represents the actual con dtion of the banks must be based upon money movements not disclosed to the public In the information upon which the Friday estimates are based. Today's statements failed to have convincing effect in stock market circles and suited. This was partly due to the fact that sceptical feeling felt yesterday to whether the formidable decrease In cash would be in fact reflected in today's bank statement. There is a belief that the discrepancies in the bank statement may be adjusted by cash op- erations between the banks and trust compa- nies which do not appear in the reports of cur rency movements. The increase in loans. which reached S4 40o 500, was not unexpected and Is attributed to preparations for Nov. ! set dement's and to borrowings by Western in stitutions in connection with their large cash withdrawals. The closing was steady. but very dull and with the advancing tendency checked
 The Tightening money market this week has had repressive influence the stock mar ket and has had some effect also in checking the broadening tendency of the bond market. which has begun to reach notable proportions. Following the bank and trust company fail ures at Baltimore and Pittsburg last week came the news of a run the St. Louis trust companies by some classes of their depositors and the enforcement of the sixty days rule allowed the trust companies This condition had led to large withdrawals of currency from New York to reinforce the position at St Louis At the same time the heavy shipments to New Orleans for crop moving purposes have continued and the long delayed demand from the West for moving the grain crops has set In. The weeks outgo also exceeds all records The emergency shipments to St. Louis believed to be a temporary need. although the increasing activity of the Western money mar kets may keep the money there over the crop moving period. The development of the regu- lar Western crop moving requirement has demonstrated that the seasons needs for that purpose must be met from New York as usual and has disproved the expectation that the Western resources would be sufficient to meet the requirements. which has been maintained in some quarters. The indulgence of that pectation last Fall proved costly to a large speculative element in the stock market and the memory of last Falls experiences begets spirit of caution. The spirit of distrust of banking institutions revealed by the St. Louis episode has induced a conservatism in the banking world in general ard disposition to conserve reserves The effect of these factors had been a rise in the local rates for both effect has been precipitate break in the rates of foreign exchange to the gold import point, Wnicn ms spread Uo pressure Of the Slt- uation into foreign money markets Foreigners have been heavy buyers of cotton during the week, impressed with the fear of the forma- ton of another corner In our cotton market The outgo of wheat and corn also has expand ed The rise in legal money rates has checked the demand for exchange to cover previous sales. which has hitherto steadily absorbed the supply of commercial bills as fast they came into the market As the current demand for gold on the continent Is keen. the final outcome of the exchange situation Is not certain, all ~NHao NhaN Ma. vAr market has secured control of the exchange situation with power to secure relief by gold
 imports at need Meantime operations in stocks have shrunk to few special movements due to causes affecting individual stocks. The quarrel among the copper interests in Montana has been the basis for the activity in Amalga- mated Copper and United States Steel has somewhat affected by the conclusion disclosed in the application to place the second mort gage bonds In the regular listed department at the Stock Exchange. The iron and steel stocks and the railroad equipment stock a class
 have been affected by the unimproved condi-
 tions In that trade and specifically by the large
 decrease in net earnings for the past quarter reported by the Pressed Steel Car Company. Mercantile agencies report a cautious attitude on the part of merchants and a disinclination 10 order ahead. No urgent liquidation has been in evidence and the opinion Is held that the long liquidation in the stock market has been in anticipation of present and possibly future conditions during the time when complaint was
 made that Wall Street was the only blue spot in the country. The hope that the necessary liquidation in the stock market is over has checked operations for further decline. There is no plain evidence that any investment de- mand for stocks has yet developed. Some plaint is heard of the manipulative character of occasional advances in prices, But this, if true, does not detract from their evidence of an improved speculative sentiment and of the
 cessation of pressure to liquidate. which de- feated all manipulative efforts to advance
 prices for a long time. Many high grade in-
 active stocks sold down under forced IT,
 quidation of small lots to prices which offered
 no indications of the value set upon them by
 investors of the figure at which investors
 were willing to part with them unless forced
 to do so by need of funds in hand The rise
 in money rates has halted the investment ab-
 sorption of bonds but has caused limited reac-
 ton fin prices. The purchase of some S2o Ooo- 900 of bonds of subsidiary companies of the
 Pennsylvania company by bankers was the event of the week in the bond market and re- garded evidence of the revived market for
 bonds. United States 2s advanced ll and the
 3s and old As F per cent. over the closing call
 of iaa