The Montgomery advertiser., 1904-02-07
WALL STREET. REVIEW
APPREHENsIoN OVER SUBJECT
 OF BANK LOANS.
Pennsylv gnia Suffers Losses, Owing to Its Borrowing $50, 1000, 900.
 United States Steel Shows Powers of Resistance.

NEW YORK, Feb. 6.-The action of today's stock market indicated a feeling of greater ap- prehension over the subject of bank loans than over the impending war in the Far East. Prices rebounded from the slight opening de- precision reflected from foreign stocks where the hope of @ peaceful outcome was reported practically abandoned The borrowing of S50- COG, GOO by the Pennsylvania Company induced heavy selling of that stock, the latter company showing the stock of the borrowing corpora tion. This loan and the fear that 1t was a prelude to similar heavy borrowings by other railroad corporations caused marked im- precision in sentiment all through the street The loss in Pennsylvania itself reached I% at the lowest price of the morning. Wabash preferred was notably firm in spite of the of- ficial disclaimers from Pennsylvania sources of differences with the Wabash. UnitAd States Steel preferred also showed conspicuous re- sistance to the weakness elsewhere manifest The tone of the market underwent marked change after the issuance of the bank state- menf and this was due to the moderate ex- pansion shown by the loan item which was not large enough to wipe out the narrow margin below the billion dollar mark at which the clearing house loans now stand. This effect of tho bank statement was made the more clear by the fact that the cash reserve of the banks showed decrease of S2, PAS, 100. where an in- crease of almost equal amount had been indi- cated Tn eclosing of the market was firm and practically at the best
 The course of last weeks stock market seemed to be accepted by the operators at the beginning of this week as a satisfactory dem onstration that the attempt to bring about a speculative revival for the advance had proved abortive. The market has declined fin activity and no organized efforts have been any longer apparent to lift prices or to attract general demand. The market has moved sluggishly and narrowly, but the average tendency has been downwards. The abandonment of the campaign for the rise was partly due to the apprecia- ton that the period of redundancy of money was passing by the normal course of events. But the market has been overshadowed also by several developments and the news of the week has contained little to encourage an upward movement of prices. The approach of the crisis In the question of peace or war between Russia and Japan has overhung all the specu- lative markets with growing influence. For eign securities have been almost stagnant on the eve of the momentous decision and the most notable effect our stock markets has been one of constraint upon operations rather than one of weakness. The particular speculative activity has been diverted to the commodity markets and the excessive commitments in those markets have made them feverish and sensitive to the slightest causes. As to the threat of war was recognized as one of those causes, the violent fluctuations in the coni- modity markets emphasized the impression of the possible effect of war upon securities. Be- sides this reflected war influence from the commodities. the unstable condition of values in those markets had its own direct influence in exciting uneasiness in financial quarters though the uprush of cotton prices bespoke a continuation of wild speculation and the col lapse during the week gave warming of exten- sive speculative losses, such are bound to have some effect in the Wall Street market for quick liquidation from whichever quarter they may come.
 The coftee market was another. though a less important. source of this kind of influence. Traffic and industrial reports have not been of a kind to help in sustaining values. The re- turns of railroad net earnings for December compare unfavorably with December of the preceding year, showing the effects of the growth of operating expenses In nearly all cases. The Southern Pacific statement was a notable exception. owing to the approach to completion of it's extensive outlays for i'm provements which have been coming out of net earppgs for a long time past. This excep- ton did not beneft the stock of that com pany, while the Pennsylvania showing in the falling of in iron and steel traffic was used with effect to depress that stock. Rumors of additional new capital issue by the Pennsyl- vania, which were at first denied, were also a factor in causing the decline in that stock. Tho returns of gross earnings for the fourth week in January so far as reported. show a decided falling of in the corresponding week of last year. the average decrease running to over l 2 per cent.
 Snow obstruction and bad weather condi- tions are given the causes for lighter traf- nc. These conditions cause a rise in the ratio of operating expenses as well as causing sp- prehension of unfavorable reports of net earn ings to come. The low temperatures and the absence of snow covering in the Southwestern Winter wheat belt is commented upon and is an unfavorable influence upon grain-carryins roads in that locality
 Business failurek for the month of January were larger than for any month since May l9oo with the exception of December. last year. Tn spite of the severely cold weather the mining of anthracite is being curtailed te avoid an aeSumulation of stocks and the wage dispute between miners and the operators of bituminous coal has given rise to threatenIne talk of great strike to come
 Bonds have turned heavy on a similar volume of business United States As, the. 3s coupor and the old As have declined Y per cent or call during the week