The San Francisco call., 1904-02-07
BANK LOANS
CAUSE WORRY
Pennsylvania Railroad Company
BorrOws S50,0oO,0OO and
Market Shows the Effects
EVABASH PREFERRED FIRM
Copper Shows Activity Since
the Recent Supreme Court
Decision in State of Montana

Decision in State of Montana
NEW YORK, Feb. 6.-The action OF
to~day's stock market reflected q feel
ing Of greater apprehension over the
subject Of bank loans than over the
impending war in the Far East. Prices
rebOunde6 from the slight opening de-
preston reflected from foreign markets,
Nhers hope OF a peaceful outcome was
reported practically abandoned. The
borrowing Of s5o. .O0o, 900 by the Pennsyl-
vania Company induced heavy selling
Cf Pennsylvania Railroad stocks; the
latter company owning the stock Of
the borrowing corporations caused
naTszed impression in sentiment
throughout the street. The loss IN
Pennsylvania itself reached -. the
Z lowest price Of the morning Wabash
preferred was notably firm in spite OF
the Official disclaimers from Pennsylva-
MIA sources that the loan was 10 figure
in any settlement Of differences with
the Wabash United States Steel pre-
ferred also showed conspicuous resist
ance 10 the weakness elsewhere mani
fest. The tone OF the market under
went a marked change after the issu-
azice of the bank statement. and this
was clearly due 10 the moderate ex-
pansion shown By the loan item. which
xas not large enough 10 wipe out the
narrow margin below the billion dollar
mark al which the clearing house loans
now stand. This effect Of the bank
d. fa - II
the fact that the reserve Of the banks
showed a decrease Of s.. As. 100, where
an increase Of almost equal amount had
been Indicated.
PENNSYLVANIA Is LOWER.
The inference drawn from the small
impression made upon the loan item
bv the large money market operations
cf the week was that large corporate
requirements had already been provided
for by the enormous loan expansion
since the first Of the year. Pennsylva-
Mas rally left its net loss less than a
point. and United States steel preferred
and Wabash preferred finished the day
about a point higher than last night
The closing was firm and practically
al the best prices
The course of last weeks stock
market seemed 10 be accepted by op-
orators at the beginning Of this week
as a satisfactory demonstration that
the attempt 10 bring about a specula-
tive revival Of the advance had proved
abortive The market has declined in
activity and no organized efforts have
been any longer apparent 10 lift prices
or 20 attract a general demand The
market has moved sluggishly and
irresularly. but the average tendency
has been downward The approach
OF the crisis il the question Of war or
peace between Japan and Russia has
0verhUng all the speculative markets
with growing influence. Foreign Sc
curiries have been almost stagnant on
the eve OF the mOmentOus decision.
and the most notable effect on our
own stock markets has been one Of
cOnstraint upon operations rather
than Of weakness. AS the threat Of
war was recognized as one OF the
causes for alarm the violent fuctua-
tions IN the commodity markets en-
phssized the impression OF the posi-
bic effect Of war upon securities. Be
sides this reflected war influence on
the commodities the unstable cOndi-
ton OF values IN these markets had its
own direct influence in exciting un-
easiness in financial quarters and in
begetting a conservative spirit there.
The volatile uprush Of cotton prices
bespoke a elimination OF wild specu-
1stlon there and the collapse during
the week gave warning OF extensive
speculative losses. such as are bound
20 hove some effect in the Wall street
market for quick liquidation from
ubztever quarter they may come. The
coffee market was another though a
less important source for this kind of
innuence. Traffic and industrial re-
ports have not been OF q kind 10 help
in sustaining values.
SOUTHERN PACIFIC SHOWING.
The returns OF railroad net earnings
for December compare unfavorably
with December Of the preceding year.
2 showing the effects Of the growth Of
operating expenses in nearly all cases.
The Southern Pacific statement was
nOezbIe exception owing to the ap-
proach 10 completion Of its extensive
outlays for improvements, which have
been coming out OF net earnings for
g7ng time past This exception did
rcDt benefit the stock Of that company,
while the pennsylvania showing from
the falling Of IN iron and steel traffic
was used with effect TO depress that
stock.
Rumors OF additional new capital is
sues by the Pennsylvania, which were
al first denied, were q factor in caus-
ing the decline Of that stock. The re-
surns Of gross earnings for the fourth
week in January. so far as reported.
show q decided falling OF from the
corresponding week Of last year. the
average decrease running to over Il
per cent Snow obstruction and bad
weather conditions are given as the