Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-03
FINANCE AND TRADE IN
MARKETS OF THE WORLD

NEW YORK, September Amy detailed
or extended recital OF todays brief ses-
sion Of the stock market would be profit
less. 1t had all the familiar ante-holiday
symptoms. superinduced by more than
week of liquidation and proft-taking.
Operations were on a very light scale ana
of professional character, the hesitating
tone of tho list rejecting the uncertainty
prevailing on the board. The money situa-
ton was about the only topic of discussion.
and the appearance of the bank statement
was awaited with some interest and no lit
tie apprehension. London reported more
cheerful tone and sent over higher range
for Americans, while Paris, which is said
to be lending money here. quoted higher
prices for rentes. Early prices here were
generally higher. the strongest features be-
ing Canadian Pacific Union Pacific, South
Pacific. Atchison, Erie and Amalga-
mated Copper. Yesterdays pressure against
American Smelling was renewed, and weak
ness was shown by Tennessee Coal and
Colorado Fuel and Iron. a moderate buy
ing movement In some of the active issues
met with free offerings of stocks and prices
receded. The market came almost to a
standstil on the issuance OF the bank
statement, which showed a further de-
crease of reserves. The loan decrease OF
about SI,I000O0 was regarded as but
partial reflection OF the weeks hquida ton,
but the statement as whole was received
with satisfaction and helped to produce the
firm closing. For the first seven months
of the year the Pennsylvania railroad re-
ported substantial net gains in earnings In
lines directly operated east and west of
Pittsburg, az well on leased lines. For
July. Illinois Central shows a heavy net
decrease, due doubtless to the yellow fever
plague compilation of traffic returns
from all the leading roads for the half year
no fr,,r %
in gross over the same period over last
year. Naturally, this Improvement is less
apparent In the net gains. because of the
continued increase OF operating expenses
and cost of material and labor.
Total sales of bonds (par value), S1.245,GOO.
Epoch of the Financial World.
With the virtual conclusion OF peace be-
tween Russia and Japan the week marked
an epoch in the financial and industrial
markets of the world. How much the
great bankers of Europe and America con-
tributed to this end may never be known.
There is a popular notion. however that
the persuasive powers of finance overcame
the arts and wiles of diplomacy and that
the last word was spoken by those who be-
neved both combatants had reached a
point dangerously near financial exhaus-
lion. To the outsider and those spectators
still committed to higher prices. the stock
markets acceptance of the peace news
must have been both surprising and dis
appointing. The monetary squirt on Tues
day was but a fash in the pan and repre-
scented scarcely more than belated buying
by those who seemed to expect that an I'M
mediate and further rise would follow the
great event. On the contrary, It gave the
professional element and its followers an
opportunity of which they had partly
awaited themselves few days before. They
sold on the good news" thereby showing
strict observance of a tradition almost as
old as Wall street. This movement was
al hv fhn nf oh
money" which brought lower prices all
around and gave the market the most
serious setback II has known since the
June advance. Keen disappointment at
the course of our market was expressed by
London and other continental centers,
which bought here at the first announce
ment of peace, their own exchanges having
closed for the day. large proportion of
these purchases have come back at gen
eral losses, If reports usually reliable are
to be believed. Europe's theory that our
market should have advanced not
garded unreasonable: Observers there
simply viewed the situation from a mis-
leading angle. In turn, this market has
shown some surprise at the lukewarm
manner In which European exchanges, upon
calmer reflection, have taken the peace
news. The week was prolific of many Rus
sian and Japanese loan rumors, none of
which took tangible form and many of
which have since been denied. That both
countries will need money for rehabilita-
ton and development, is well known, bat
for the present the subject may be dis
missed with the assurances of a high au-
thority that Japan will hardly come into
the market this year while Russia's needs
are most likely to be financed abroad. In
any event, unless conditions radically
changed. American bankers will play no
leading role in Russian loan If for no
other reason than that they will not be
asked to do so.
John Mitchel's Warning.
The note of warning sounded by the
leader of the anthracite coal miners in his
declaration of principles gave the market
It's first chill and revived a lot of discussion
snent the labor situation. 1t Is clear that
the miners are preparing for contest more
than half q year away. but as financial
markets deal largely in futures the stand
taken by the spokesman OF this important
branch of organized labor came under seri-
Gus consideration. II was not without ef-
feet on the coal shares, Reading, still the
storm center of that group, falling very
materially from its high record of the
previous week Steel and iron trade condi-
tons may be dismissed with the summary
but significant statement that the big pro-
ducers have practically agreed to reaffirm
present priceS for the coming year; that
structural SHAPES are at the highest prices
in several years. and that the orders booked
for next year in various branches of the
industry are rapidly increasing.
One OF the greatest movements in cop
per metal, and incidentally in the copper
shares, met with reversal during the
week. This was partly the result of the
ending of the war in the far east, whence
have come the heaviest demands for the
past year. To a greater extent, however,
the movement was arrested by the reckless
speculation in which metal manipulators
had been engaged. Something more than
an incident, perhaps, to the decline of the
copper stocks were the widely circulated
utterances of New England operator pre-
dieting dire disaster in the copper and kin
dred trades.
The Bond Market.
Many who have watched the operations
OF the banks in their relations to the stock
market profess to In the rumors of a
possible money stringency something more
than a mere phantom. They point to the
low reserves. less than one-ifth of those
a year ago. and many millions below those
of 1893 and to a loan account expanded far
beyond ordinary proportions. The week =
liquida ton of stocks which is believed to
have settled the fate of several pools and
numerous individual accounts was salutary
for other reasons II found some refiec-
tions in today's bank statement, which re-
ported a comparatively slight decrease in
the loans. but the situation is still far from
satisfactory at time when the promised