New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-04
THE WEEK IN WALL STREET.


there were 4 few people who thought that the
advance had too many earmarks Of manipulation
10 encourage the expectation OF sustained bull
market. especially there were no signs OF an
active outside interest in the speculation and
these views apparently were Endorsed by the
course OF values IA Saturdays market when
quotations declined from to points on a sell
Ing movement that met absolutely no support
from sources where assistance IS generally looked
for in times OF badly breaking InnrketH Yet the
decline on the last day Of the week and the first
Gay Of the new year does not necessarily fore
shadow the resumption OF the bear activity that
marked the market OF the year just closed In
deed there Were many reasons for expecting
better prices IN 1904 than in 1903 at least much
better prices than were recorded in the last few
months or the latter year. Saturdays decline
was oasec In great part on the serious develop
,nents in the Far East developments that led to
heaVy selling for foreign account and great
weakness Oh the European exchanges The ef-
Feet OF war in Eastern Asia on the local sltua-
ton would, of course. depend to a great extent
on the attitude of foreign investors regarding
their security holdings OF American as well as
European securities. II England and France
doubtless would become alarmed and some un-
oouhtedly would sell their stocks and bonds the
enect or which would be reflected IN this mar
ket ss wellSas on the foreign bourses Extrem-
ssts take the view that other powers will becorn.
involved in the Far Eastern situation 10 : de-
gree that viii upset the equilibrium Of the whole
family or nations but, fortunately. such think
ers seldom see their expectations realized
There is no occasion to rush into a panic be-
W sill in t. -~T..
United States viii not be put out OF business
because OF the disagreement between Russia and
Japan or on account OF the results OF such a
enlargement as affecting other nations. The
United States is big country with varied re-
sources. and II II should find it necessary to be-
come party TO the Eastern controversy the
actual value OF American investment securities
would not be ruined by any means. According
70 the views Of conservative men, this is a good
time for every 10 maintain a tight grin on
his possessions; to look at facts rather than
1ancies, and 10 bear in mind that conditions in
mis- country are on a solid foundation in all de-
parfments OF trade and industry A big foreign
war would stimulate many lines OF business IN
the United States. the demand for supplies
Of all kinds would increase to an extent that
would force the governments involved into the
American markets for food and equipment Of
various kinds.
Although the stock market has recovered from,
10 TO 20 points from the low level of the last
year. prices are still selling under the actual
value Of the investments represented It does
not appear probable however that under the
present unsettled conditions in the East the
market at this centre VIII exhibit great bull &C.
tfvity at present And then the uncertainty
over the action OF the United States Steel Cor
poration with regard TO its dividends and the
uncertainty over the earnings OF the concern IN
the last quarter Of the year will naturally serve
10 restrain speculative activity IN the first part
Of the current week The directors of the Steel
corporation VIII meet on Tuesday. II is quite gen.
rally predicted in the Street that the common
stock VIII be taken out OF the dividend column
while II is known that the earnings will show a
falling OF from the preceding quarter as well
as from the same time q year ago. The outlook
for steel and iron in the new year. according TO
trade authorities is much brighter than II was a
Few months ago, and IL is confidently predicted
that earnings IN l9O4 Will run ahead of tn. re-
suits OF 1903 These predictions Of course coma
from men who from the business point OF view
hope that their ideas Will be borrs out by the
actual movement OF the trade; but nevertheless
their deductions are based on a careful study OF
the industry.
In the last week OF the year call money was
quoted as high 0 per cent, compared with
high rate Of ID per cent in the same week a wear
ago. while general indications pointed to a rela-
lively easy market IN the first month Of the cur
rent year. Saturdays bank statement although
showing falling of In reserve above legal re-
quirements. presented a substantial gain in cash
holdings. the decline IN surplus being due to a
gain IN loans that expanded deposits over
100000 the large increase in loans rejecting
corporate borrowing incident TO the January In
terest and dividend disbursements The demand
for Currency from the South has apparently rim
;ts course. while the local market may now look
forward 70 a steady gain IN cash holdings
through receipts OF currency from the interior
last weeks movement this account showing
q net gain TO the New-York banks OF over 81
100000. The foreign exchange market was dull
the greater part OF the week. closing at a slight
advance as compared with the preceding week
at f-e4 for demand, compared with 4 $3.50 in the
closing week OF 1907 The current position Of the
market suggests further imports of the precious
metal. although continuation Of the gold i'm
port movement VIII depend 70 a great extent on
the course Of the local money market From
present indications there viii be need OF assist
ance from abroad. and in case Of war In the Far
East Europe VIII doubtless place every possible
obstacle in the way Of shipments OF gold TO this
country. In the week the Bank OF England
made no change IN its minimum rate of discount
while in the open marke: in London and in other
foreign financial circles money quotations
showed no important change.
AS e result OF the weakness in the market
Saturday the advances in the earlier part OF tbe
week were in great part lost, the leading active
issues showing small net declines as compared
with the preceding week. Trading on the de-
cline, however, was made up in great mart ~
purely speculative transactions little genuine
investment liquidation being reported The