The Montgomery advertiser., 1904-01-03
WALL STREET. REVIEW vroLENT BREAK IN THE PRICES
 OF STOCKS. Apprehension of the Effects of the Coming Outbreak of War in the Far East the Com
 polling Cause.

NEW YORK, Jan, 2.-Todays violent break In prices of stocks was suddenly and unexpect- cd and the grounds for tho heavy liquidation Tor the day are not clear even now, although 1t is evident that an acute apprehension or tne effects of the coming outbreak of war between Russia and Japan was the impeling cause. The news of the day was rather more hopeless of the possibility of averting war, but Wal Street has accepted war as the assured out come of the situation for some time and has viewed that outcome with apparent equaniinity without selling to discount war scare as is tho tnvariable custom of specrauve mastsss s.ssts force of the alarmed selling movement today gave rise to fears that something was known soSaplications .s,s threatening to involve other powers in the coming struggle. The pub iished expressions of opinion of general in. authority and intimations that an outbreak of war would involve delicate situation for all the great powers. including the United States were Deizod upon 10 feed the prevalent alarm rho efRect upon the market lost nothing in force from the fact that considerable specu- iakive commitments have been made In sx- pectafion of January demand for securities which may be checked by the course of events ..zh4ah Is feared. Other considerations seemed
 V wholly ignored and the bank statement
 "a nothing to counteract the disposition to
 out of stocks. The first of the year is
 scfed to involve large changes in banking
 nt. but today's sixteen-million loan expan-
 soIIcysng that of over 2,ooo. 900 last
 ah ts indicative of other demands than
 ar-end interest payments and causes the
 
 lrUwfnKs after January ist are to be dupli- htna this year. The market closed active and
 sak in spite of spasmodic rallies In spots nd lnnses on the day range from Ito over 4 atnts on the particularly active stocks The kavAnce of the last few weeks In prices of Iaoekb showed some hiSitatIon this week and .Ssne to a half when admonished by the stiff zenlng oe the rate for call loans whic hgave Ewaxning of the need impending for the use of 5kunde recently accumulated In banking re- eeTvra These funds have been placed on call rending sh edemand for their employment in paying the year-end obligations for which they
 me amount of the dividends and interest to Dc paid in January were yariously estimated at from eI3o. ooo. 900 to Si5o. .ooo. GOO by range for the transfer of the greatest part of thia by bookkeeping accounts and by not dis sursing the aggregate bank deposits: But the possibility of the simultaneous presentation of che checks sent out for these year end pay ingIy. The further engagements of gold in London for import this week have been material factor fin moderating the inhu- cncc oe the higher money rate The course of ahe loan item of the banks in the next few weeks is another fact to be keenly watched Large railroad bond issues arc known to be impending and the present weeks heavy loan expansion gave warning that the corporation borrowing was beginning earlier than usual without waiting for the actual release of funds after the January disbursement Last scar the loan contraction continued up to the end of the year. but from December 25, 1902, 20 EeD. ls tSOo, the lOdIS or the New 1OEk hanks expanded to the extent of nearly S75,- o0o. 900. bringing the total of that item to 995o, GOO. coo. the high record. Much of that borrowing was in the form of note issues by railroads and bond issues are now offering in the market for the purpose of taking up some oe the note issues into funded forms. The pos- eihle further needs of the railroads remain to he provided for. Rumors have revived also of combinations and purchases amongst the rail- roads which would necessitate further capital issues. The only development this direc. tion was the invitation to deposit Chicago and Alton preferred stock with a view to its sale but this was sufficient to set afoat a wide variety of surnlises regarding a group of prop critics in which the same ownership figures On the side of industrial corporations The Journal of Commerce has compiled a state snent of the total capitalization of the com. p1eted industrial consultations in 1903 of ieEg than S43o. 900. 900 compared with sI.- Iz2. 900 900 in 1902 and S2 9o5 GOO Ooo in 1901. While the tightening of the money mar ket has checked the activity and the advance in the market the reaction has not become acute and the profit taking by professional oD- erztors has been well taken. The action of the market has fostered the impression that