New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-02
WALL STREETS ACTIVE YEAR.
LIQUIDATION AND DECLINING VALUES-MARKET
FEATURES
I for Stocks Not accom- panied By Corresponding Weakness
IN business Word-rade and Monetary Situation Sound

NAMES and, OF course. this factor was most i'm
portant influence in depressing Wall Street sentf-
nant while II was the direct the reduction
&, the dividend on the United States Steel Cornora
tion's common stock 10 q per cent basis and the
nssslng OF the dividend the preferred stock Of
the Republic Iron and Steel Company. Pig iron
production showed a heavy falling off in the year
business failures while slightly smaller in number
than in the preceding year, showed a considerable
;,o-easa IN liabilities From the Wall Street poInt
r view the troubles IN Venezuela, the collapse Of
"a rious Industrial companies, the failure of the
A1drich bill to regulate government deposits in
hanks the increase in the Pennsylvania stock to
$40, 600 90 the Keeue attack on Union Pacific in
forests in an endeavor 10 prevent them from voting
tba Southern Pacific stock increased expenses on
a., railroads tho decision against the Northern
Securities Company in the United States Circuit
Court at St Paul. the heavy speculation in the cot
ton market the floods in the West the application
,o- a receiver of the United States Shpbuilding
C-oronsnv serious failures in New-York and other
.o,+-es he evidence Of weakness among supposedly
strong speculative interests and certain Wall Street
houses and the differences between Pennsylvania
sr6 Could interests supplied the leading adverse
features Of the year.
rAyoRABr.E FACTORS IN 1eoa-wan Street
traders az a rule cannot be convinced that there
have been any favorable factors In the last year
bu+ a careful! review OF the situation since January
1on2 shows that there have been number of IA
-orobIa developmeuts affecting the actual value of
saorr.es Among them may be mentioned heavy
railroad earnings expansion in many lines of trade
satisfactory crops the increase In the dividend on
various railroad issues the collapse or the Southern
Pacific pool and the elimination OF many weak
s,o+s from the Wall Street and general business
.t+,,o+,o, the ratification Of the Panama Canal
treaty an important revival IN the country's
mort trade in the closing months OF the year heavy
gold Imports a large increase IN the amount OF
money in circulation. the formation OF business
mems associations a protection against labor
unions general stability in railroad rates, the
s,soa+ion Of the decree against the Northern
Securities Comnany. by which the payment OF
dividends was permitted. the success OF the Penn
svlvan!a stock Offering. the ease with which solid
cou,nan,es we're able place their bonds, the
setIad outlook in the labor situation at the close
or the year and the failure of pessimistc predic-
60 REGARDING the business situation to be borne
out hv actual facts, and the greater conservatism
IN banking circles in the matter or loans to specu-
,o,,,a snterprises and the end OF industrial COM
pany promoting
p,vE MISUNDERSTANDING o: the Associated
ra,,ts Of NeE-York at the end OF the year showed
total cash OF 500 O4 COO compared with $ZSoS'tO
in The corresponding time year ago. ana reserve
hove legal requirements o. $Io'ie-o. as compared
itb $3.50 go in 1902 Loans now stand at $500 262-
soo oqsipst sS7532l 800 IN 1902 The record figures
for loans in the year stood OF Se592s.IG9 against
sa3s 1o1 go in 1902 while the record deposits were
sos2 2la 800 against a0l94i,a0 In the year before
the largest ever recorded IN the history Of the
Clearing House The fact that loans throughout
tra car have peen much heavier than deposits has
caused considerable uneasiness IN many circles but
as the loans Of the New-York banks are secured by
Gilt edged collateral there is no occasion for worry
| over this feature OF bank conditions The general
condition OF the banks in New-Iork and OF the
hanks throughout the country is sound and bank
officers express the utmost confidence In the OUTLOOK
| for the new year. In January and February. 1903
loans we're increased by s74S 90 from December -
| 1907 to February q. 1903 Not the least OF the
factors In this increase were the borrowings OF the
Pennsylvania and Lake Shore railroads. The per
cent notes issued by the Lake Shore Railroad Com
pany mature on January L. 1854. and Will be PAID
out Of the proceeds Of the $40 ooo0o twenty-five year
per gold bonds, now offered at ss and accrued
interest 10 the public ess 10 the holders OF the
notes. The terms OF this offer indicate the belief
| Of the underwriting syndicate that the rate for
time money will not fall below per cent In 1904 at
| least. and that Investors must be offered uttio
more than that 10 induce the purchase OF even high
grade twenty-five year per cent railroad bonds at
| this time But rates Of interest and prices Of
securities made in the open market. based upon
supply and demand II the supply OF money proves
per cent the rate will decline and in that event the
| price OF the Lake Shore new bonds Will so above
% rrsy Is v no be 0S 10y q2Db BaI rg the R
terror in the next two months win be large. In
| cities &3i50ic0. against 81. 600 last year.
| MONEY MARKET CHANGES.-The money mar
| ket in 1888 was, as rule lower than in the pre-
cecing year the high record for 1903 for call funds
OF Il per cent comparing with high record or 90
per cent in 1902 and IS per in 1901 In the first
week OF January call money advanced to Is per
cent, from which point there a gradual decline
| 10 per cent until April. when an advance TO o
per cent was recorded. Throughout the rest Of the
spring and summer the market was in a compar-
at wit he Of a
period IN July, when rate Of 10 per cent was re-
| corded In the fail a hardening tendency was
noticed in the market. but there was no scarcity
! OF funds al any time, while tho highest rate
reached in the period when stringency in the mar
| ket Is common was only per cent Although an
enormous amount OF money was sent from this
centre 20 the South and West, local bank reserves
were in excellent condition Throughout the last half
Of the year, owing IN great part 10 the large i'm
| ports Of gold from Europe. Tho Secretary OF the
| Treasury stood ready at all times 10 help tie
but fortunately the local banks were able to get
| Secretary Shaw. however. improved the general
financial situation by increasing the government
deposits IN national banks throughout the country
sq ~ aTigp9Sing large amount Of the per CS ~
| these bonds were refunded in the year.
RAILROAD EARNINGs-RaIlroad traffic In
1858 was heavier than in any year IN the history
| OF the United States gross earnings showing re-
suits that reflected great prosperity in ali parts OF
the country. In many net earnings failed 10
| maintain The improvement shown in gross, OWING
| 20 the policy Of railroad managers 10 spend a
| large amount OF money out OF earnings on their
properties; also 10 the high cost OF labor and ma
terials. According 10 the estimates made by COM
petent railroad authorities there will be serious
falling on IN Tafic in the new year. New railway
mileage In the year amounted to about 6,000 miles
| an increase OF 80 miles the preceding year
The largest Increase was in the Southwest. as TOT
| instance. in Oklahoma, where 6v5 miles Of new
| railway construction was completed. Louisiana
stands second, with the record OF 448 miles, with
| Texas tI!Ea with 81 miles. In view OF the VIDE
spread uaDor troubles IN the year the record Tl