The Montgomery advertiser., 1904-02-21
WALL STREET. REVIEW
LITTLE CHANGE IN CHARACTER
 OF MARKET.
Effects of the Days Pressing Factors
 are Very Moderate and are Well Resisted by the Securities.

NEW YORK Feb. 2O.-The character of the that of the Whole week. The effect of the days pressing factors were very, very mod crate and were well resisted But once the de- market abruptly terminated. There seemed to be waiting demand for stocks on any de- clines, but no buyers were at hand to fol- low any advance. The principal pressure upon the market came from foreign sources. This was we'll absorbed and prices were at no time drawn to the London parity The sentimental enect Of the decided upset in the Paris and Berlin bourse are attributed to financial needs, caused by the shrinkage in Russian se- cQrities. which are poor sale at the pres ent time. The special weakness of state funds in Paris might. however. be due to inti- mate knowledge of diplomatic affairs not availl- able to other centers. which would explain its greater sympathetic effect on other foreign markets The favorable bank statement was help to the resistance to depression, how ever. the s7,544 400 increase in cash was not unexpected. and is attributed to return or money from the south where the collapse Tn cotton speculation has decreased the im- mediate need The loan decrease is evidence that corporation borrowings have been largely supplied out of the previous loan expansion. The market closed about steady and not far from last nights level
 The weeks market for stocks has been duli- CT and narrow than for nearly four years past. Mondays transactions fell to a total Of sales less than for any day save one since the summer of 1900 The news of the week has not been favorable to advahcing prices but the adverse developments have been al-
 
 upon the market The occasional upward movement here and there were without news to account for them and were quite evidently due to the testing operations of the traders who are at the end of their resources to ef- feet sufficient movement to afford a basis Tor their daily operations. These profess sionai operations have made up almost the entire market. Holders apparently indif- ferent to today's developments and seem to be content to hold their property for more propitious market conditions The same spirit IS seen In the policy of the railroad com panies to negotiate temporary loans at a e1Smparauvely high rate of interest. rather than attempt to Issue new securities at a time when the demand lB- listless At the same time. an occasional selling movement at one point or another proves to be almost with out enect on prices. giving the impression Tn View Of the narrowness of the market that potential support was behind it. The effect this week has been to cause absolute rigidity The continued large borrowings by railroad corporations has been viewed with mixed sem tments The continued tranquility of the money market in face of these demands and future requirements plainly In view has left little, room for apprehension of any con striction of credits on that account. The publi- cation Of the controllers compilation of na- tional bank returns as of January 22 makes it evident that the loan expansion of the last few months has been restricted to New York banks. the New York increase for the De- riod covered reaching S75, ooo. 900 with the aggregate for the whole country showing only 4ooo GOO increase. This showing of heavy decrease in the bank loans outside of New York confirms the belief that the low rates for money have been sending idle funds to New York banks for deposit rates of interest. The railroad borrowing has another side also which gains impressiveness from the steady downward tendency in railroad earnings Wall Street has dwet much for long time past un the large proportion of railroad earnings, which have been diverted to betterments which would not have a permanent place in the operating expenses. The present borrowings indicate immediate prospect of reduction of expenditures ahead of dividend claims and in some cases they are for the fund of ex- penditires already. mado and chased in charges upon earnings. Meantime the declin- Ing tendency of gross earnings continues For January. and February the storm and snow blockades are offered as partial explanations the ratio of operating expenses even on the reduced traffic make heavy cuts in the net earnings of railroads. The force of argument Is that storm blockades represent only tenn porary interruption of traffic A dispute orig mating amongst the western lines over the gulf and Atlantic ports traffic has spread to the trunk lines regarding the differential for Philadelphia and Baltimore rates on lake ] grain, Fears are expressed that the trouble will spread to other classes of freight. The 1 falling of In the demand for money in the country large is not an altogether reas- rate of activity of business in general Tho Far Eastern war and the threat of eomplica- ! uons in the Far East overhang the market l but are regarded of importance to this l market principally through the possible ef- ! fects upon money markets and the reflex ef- ! feet here. The adjustment of Baltimore fire | losses has also come up for renewed consid- eration
 Bonds have been dull and heavy in a very | narrow market United States A. and the old i As have advanced F per cent. and the 3s | coupon 1a per cent. on call during the week.