The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-05
rINANcIAI AND CoWWERcIAL.
SArrRpAy. Feb 4

upon profit taking ~dle'. But those Nale'
were not large. and tn decline, IN prices
we're only moderate. hardy exceeding
fractional change. in any importan. in
stance The market cyinced "A tendency
10 become dull that it has shown on so
many occasion, recently whenever 1t ba-
gan 10 fall that 1. 70 say, that no pres
OF liuuidation manife4ted itself and that
yfe yigorou, undcrtone Of tho market WA
maintained Certain stocks. particularly
tha United State steel share' were stronger
than they have been for some time, while
tho buving movement in Delaware and
Hudson which set in few day ago carried
tho price Of this stock at one time two and
half points above ii, previous close. which
wa. in turn nearly six points above the
final price of the day before The National
Lead stocks were also exceptions to the
trend OF the market and the Metropolitan
Street Railway Metropolitan Securltie'
and BROOKLYN Rapid Transit issues all
advanced. ~ did PETERBOROUGH stock on
the outside market The weekly
bank statement was wholly IN line with
previous forecasts Of It's character
The cash held by the banks diminished
over $4,000, 900. ps expected. while loans,
undoubtedly a. result Of the southern
Pacific rounding which was made opera
tive during the week 50 far a. subscriptions
10 It were concerned, 50 increased that the
bank surplus fell Off about $1,000, OCO The
surplus continue, to rule ut normal figures
for the time of year There Seems 70 lie
at least some general understanding OF
the exact meaning Of the hank statement
under the present system of reporting IT.
With money holding at it's present low
figures the trust companies are out OF
the lean market. leaving their money
in tho Gnk-. which make practically all
the loans that are made Thus the entire
borrowings Of tie financial communities
apuear in fun in the lank return. the vast
potential credit facilities OF the trust coin
paues bong held substantially in reserve.
If money rate should rise the trust COM
panes and private lenders would again
begin TO extend credit, and the phenomenon
would be presented. which has so often
pu7zled Wall 81 rect. of an advancing stock
market perhaps, and "A considerable actual
increase in loans occurring when the weekly
bank statement showed decrease rather
than an increase Of loans. The stock
market to-day closed firm and hard, with
the dominant feeling in Wall Street one OF
onfdence and optimism.
The one thing that was talked about in
the financial district during the day more
than anything else was the extraordinary
success which attended the Southern
Pacific refunding scheme. brought ont
yesterday under tho auspices Of Messrs
Kuhn. Loeb & Co. and Speyer & Go. The
SIS. 0Oo, 600 of bonds offered were taken
from these banking houses within two
hours after the subscription lists were
opened. the average allotment to SUBJ /
scribers being less than 100000 1t was
to-day learned that these subscribers. !
many OF whom were other banking houses, |
had practically completed the retailing |
OF the bonds to individual purchasers.
This was properly regarded as being the
most brilliant demonstration yet made Of
the power and sweep of the present invest
nnent market and the actual rush that il in
progress to buy high grade securities. !
Definitely. as the result of the operation |
the treasury of the Southern Pacific Com |
pany Is reimbursed for good portion of (
the expen ditures recently made by ii FORM
work upon the Southern Pacific
lines. that the distribution of dividends
upon Southern Pacific stock is clearly
brought nearer than IT was Very little
vas heard to-day regarding the decision OF
the Republican Members of Congress,
in the morning papers, to pass q
pill in the House of Representatives along
he lines Of freight rate legislation
by the President in his
asst annual message. The political
purpose that actuated this course
leceives nobody nor j. anybody in the
lark a to the fact that if there was the
lightest likelihood that the bill in question
gould pass the Senate it would not be al
owed TO pass the lower house Of Congress
Aside from matters 10 which reference
las been made and the gold exports that
occurred during the week. noteworthy
developments Of financial interest in the
,erod We're few. perhaps the most interest
nR general disclosure being that in the
fullest period Of the business year the
,ctiNty % the stock and bond market
honld have been so pronounced. The
,old shipments will probably keep up as
onG ~ money rates here ara below those
1iling In foreign countries simply because
,ur bankers hesitate to keep their funds
at home when they can uae
hem 10 advantage abroad The Taiied
,tates Steel Corporations report Of its
business for the last quarter, made at the
beginning OF tho week, was % much more
pleasing document than anybody had look ID
or. since it showed increases in net earnings
or the quarter running from million 10
million and half of dollars above the
,uesses as to these amounts made by Nall
street. The market for all iron and steel
PRODUCTS retains IT. hardness, advances
aving heen made in the last few davs
n the price Of wire. tube and merchant
,ipe products while steel bllets are selling
/ a premium above the "ohi cial' quota
ions. The nate cutting on shipments Of
orn to the Gulf ports by some Of the West
IN railroads seems to he generally and
regarded as a mere assertion Of
be normal tendency Of this coarse freight
o trave TO tidewater by the cheapest route
nd the enc important inference to be drawn
rom the fact is its Illustration Of the folly
n the part Of the people of our own State
\ expanding slO0, 900 900 for the consir7lc-
ion of canal through the State in the
ain nope that they can successfully COM
at the future movement Of this class Of
ulky merchandise to the selboard by tho
atural channels of Transformation Tho