New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-11
THE WEEK IN WALL STREET.


the influence of operations for higher figures and
The resumption OF speculative activity by num-
her OF pools that have long been inactive The
latter tendency was especially marked In the
low priced issues. IS, for instance, the Colorado
and Southern Chicago Terminal and Mexican
railroad shares. There are. of course, good rea-
sons for the purchase Of this class OF stocks ana
in many quarters it is thought that the current
level Of values and the outlook for money aho
business in the current year warrant active
operations on the bull side Of the greater num-
her Of stocks or the list. This argument takes
.nto consideration the possibility Of business re-
action incident 10 Presidential year, the posi-
biIity OF war in the Far East and other expected
so-called adverse features upon which the bear
element bases .ts expectations Of lower prices
the contention by the advocates Of higher quota
tions being that the decline Of the last year nae
more than discounted factors OF this character.
There is certainly much more confidence IN
financial circles than there was a month ago.
and the apparent ease with which bond offerings
are absorbed and the willingness Of bankers TO
encourage further issues Of mortgage securities
encourage the belief of better things this year
than in the year Just closed. This idea, however
does not warrant the conclusion that there VIII
be a big bull boom IN stocks.
That adverse developments have been dis
counted tn securities is apparently reflected in
the insignificant effect that the factors that COM
nelled the passing Of the dividend on United
States Steel common have had on the stock mar
ket For the last quarter OF the year the net
earnings OF the Steel Corporation show falling
off as compared with the same time year ago.
OF ST. 14071S while the reduction Of untitled or
ders on hand amounts 10 2,l32. $50 tons from
the corresponding period I'm 1902. 1t is asserted
in some quarters that these figures represent
eft .yRf fG
esting to note that estimates made by men IN
the iron and steel trade indicate that orders for
eteel rails already booked for 1904 aggregate
about one-third OF the capacity OF the mills.
which compares with orders year ago
amounting TO more than two-thirds OF the entire
capacity of the plants The official price OF steel
rails for 1904 has been placed at the same inquire
as prevailed in 1908. but there is little chance
according 10 the opinion Of men who are well in
formed regarding the business, OF large con-
tracts beiiSg placed at that price. 1t is well to
,oar a, mind that the United States Steel Cor
narration wifi now be compelled to face the COM
,e+,tton Of the Lackawanna Steel Company.
u which begins the new year with its steel ran
mill in operation, well as the competition OF
she Pennsylvania Steel Company. In the last
ouarter of 1903 ths United States Steel Corpora
ton did not even earn its dividend on Its pre-
ferred stock.
Much trregularfty Is shown IN railroad net
earnings but gross returns. as rule, are snow
ing I'D well results for THE latter presenting for
December an increase OF per cent over the
same time in the preceding year. While net earn
ings received for November exhibit a small de-
crease OF the companies reporting in the last
week noteworthy changes We're shown in net
l,y Rock Island. Pennsylvania, Illinois Central
and Southern Pacific. and in gross by Mis-
souri Pacific New-York Central and Southern
Railway Rock Island returned for October an
increase Of s10,977 in gross. while net earnings
presented q loss of $751; 2S7. and for November
an increase in gross Of $129, 727 and decrease
in net OF SlS5.579. making for the five months
OF the fiscal year a decrease in net earnings OF
81 ,3S4 653, as compared with the same period in
the preceding year. Rock Island like the greater
number OF railroads in the country. is handling
a heavy amount Of traffic. but its increase in
gross earnings is offset by the heavy expendi-
lures that are being made on the property and
charged to operating expenses Southern Pacific,
however is beginning show in net earnings
big reduction in expenditures, its November
gross earnings increasing S44ooo0 and net earn
fngs increasing S7I2 900. comparison being made
with the same time in 1902 This company is
now reaching a position where it can show
larger proportion OF net earnings compared
with a year ago. owing TO the fact that extraor-
binary expenditures the property are now
apparently at an end. and holders OF the stock
may therefore look forward with some degree
OF confidence to a dividend distribution. perhaps
in tie current year. For the five months Of the
fiscal year net earnings amount to nearly Sl4.
100000 while after charges there is a balance
OF over S647ooo0. and after the expenditures
OF betterments and additions there is deficit
OF $4,000 as compared with the deficit of
S2243O 600 in the same period the year before.
Pennsylvania, while showing for November on
the lines east OF Pittsburg increase in net,
presents decrease on the lines west Of Pitts
burg On the whole system directly operated the
increase in net for eleven months OF 1903
amounted TO only $4,000. compared with gain
in gross Of Sl5,7S1.5eo. ~
Last weeks bank statement reflects conditions
81 the money market and apparently foreshad-
ows long period OF ease in loan quotations
Currency IS now retursfng in large volume from
the interior receipts exceeding expenditures by
over 100000. The Statement OF the amount
Of money in circulation on January i shows an
increase from December ! OF over $1,000
eco and n gain. for the calendar year OF over
SIl5o0O000. Total circulation IS now larger
than at any preceding time IN the history of
the country. amounting 10 50 466, ,S97, which
compares with 81, 1886, 39S 40 five years ago and
Ssl8o00o0o twenty-five years ago. The total
amount OF gold in circulation in 1879 amounted
10 S96.000000 as against S627, $40, 533 at pres
ent. In view OF the current large loans Of the
New York banks. which stand S44. $50 100 higher
than a year ago. the Of this item il the
next few weeks viii be watched with particu-
lar interest At this period OF the year loan ex-
pansion generally takes place Last year from