The Montgomery advertiser., 1904-01-24
WALL STREET. REVIEW
MARKET IS HAL1UNu Arp
 IRREGULAR.
Result of the Profit taking Invited by. the Weeks Rise in Prices. Rally in the After.
 noon. >

ket was Irregular. but the haitins movement was not more marked than is natural under was sustained by several important points of positive strength After the publication of the bank statement there was an effective rafiy and the market closed steady with no irnpor- the market seefned satisfied with the increase In the surplus reserve of the banks and were not Is impressed with the stassering showing of broke all records in several instances. There is general agreennent that the rapid town ex- pa9sion now in progress repressnts largely a transfer of obligations from trust coffipa- nies and outside banks to clearing house in. stitutiofs which pay interest on deposits of other institutions. The statement of New six months ending Dec. ] last show d { net net decrease in deposits of Sl02,e76so33, for s5 companies reporting which represents re- duction in proportion of liability upon bank rss serves. as trust companies keep their reserves largely on deposit at the banks But the sssx- gestion Is also made that the present heavy influx of funds from the interior Of New York may represent. in part operations by the treas. ury in the transfer of Government deposits from interior depositors to New York to be drawn on in making the Panama Canal pay ment. The item of Government deposits with the New York banks howsvef, refects no such operation and 1t ia satd On good atthority that interior Repositories have not yet received notice of any call upon the Government de- posits. Banking opinion seems to be that the demand for. money has so far declined as to promise of plethorfc condition in the local money market in the Immediate future. The stock and bond markets have broadensd out and grown in volume in the course of the past week. rising to q degree Of activity and ape peerance of strength not seen for many months past. The distribution Of securities affected by this movement does not appear to be very wide. according to the reports of the eonirnis- sion houses whose dealings represent the de. mand of the so-caIled outside public, which continue to complain of e small share of the increased business being done. In contrast the brokerage firms having . membership repre- whose movements are in themselves on scale to dominate the market in ordinary times have been very conspicuous in the dealings. largely professional. Groups of capitalists who dominate the control of the properties whose shares are dealt in on the Stock Exchange they have confined their trades hitherto to the stocks of the smaller railroads. The transa6. tions of this week, however. have extended Co of the sympathetic eifect on the general mar ket. This kind of professional and semi-pro- fessional operations is subject to certain sus- p1sO tns always m ne S,rn sss s.sses ewing 0 such as the making of . market for new se- curities designed to be noated. The develop Inents of these large operations have been ef. fective in driving to cover c large bear party in the market who had been obstinate in main. taining the short side largely because the large operators had made their appearance on the
 
 standing and unwieldy short interest was q material factor in the buoyancy late in the week. The movement was Q specialization of q number of influences which have been under discussion for some tin1e past, rather than any sudden change in conditions. The growing con- viction of the abundant resources of the money market to meet all demands upon 1t has also been of growing force upon sentiment. No small part of the increase in New York bank loans Is due to the transfer of loan items from trust companies and from interior bank ing institutions to the New York banks in the New York banks directly when money rates are high and the profit attractive When rates for call loans fall to the rate paid by New York banks on deposits outside lenders cali in their loans and fall back on she deposit rate paid by the New York banks which arc funds on which they are paying a rate prac- tically equivalent to the open market call loan rate. Fears of railroad borrowing of the preparation for the Penema Canal payment and of the coming increase of Feb. 1 of the re- serve required Of the New York trust eompa- declined in influence. Gross earnings of rail. roads continue to be well maintained. Eenti. ment over the iron and steel trade outlook has distinctly improved and the profitable terms on which the country's cotton and grain crops are being marketed is of growing impressive. ness The growing demand for bonds has been of no small influence and improving sentiment over the outlook for securities AS e pressure for employment of capital in railroad mortgages is not unusual prelude to an expanding mar ket for stocks. The extraordinary demand for United States Steel second 6s and for Rock Island bohds while overshadowing the bond market, has not precluded a good demand at advancing prices for higher grade bonds. Quo4 tations on call for Government bonds have not changed during the week.