New-York tribune., 1908-02-17
THE FINANCIAL MARKETS.
4 WEEK OF GENERALLY DECLINING PRICES. NTH
THE BEAR PARTY IN CONTROL.
The lunupa SaeCommodty Taues Still ShrinkngMoney
and Exchange.
THE WEEK IN WALL STREET


with final figures in almost all cases showing
net losses as compared with the preceding
weeks close and with some issues declining 10
their lowest levels for ten more years. Inc
emphatic success of the New York City 800.
100000 bond sale, both as to the volume OF
oversubscripton and as to the average price; III
comparison with the results obtained at laSt
September's sale, lent only temporary strength
to the stock market. where the Judgment was
that an average price Of around lo4 Tor an
issue OF az per cent fifty year bonds of the
first municipality of the United States was no
more than moderate, representing an eaceueit
bargain in the long for the successful DID
ders, but not rejecting the early re-estabish-
r1aent of normal money market conditions Inc
piling up of idle capital due TO the depression
in business was proba bly, an important factor in
the large oversubscription Of the citys bona
offering, the owners of this money selzing an
opportunity for employing their funds In the
purchase of long term bonds OF the hlghest
grade at a figure representing an interest yieio
of around per cent This cons1oeIa.lon aa,, ap-
pealed with much force also to European ih-
VeStors whose bids aggregated good many
millions of dollars and to whom at nome similar
opportunities are not presented
The bear party may be said to nave heen IN
virtual control of the market during the week,
with conditions generally favoring a continu-
ance of their dominance for the present There
was reported. il is true fair amount OF spring
buying in the drygoods and allied markets. but
principally in the nature OF restoring oepieteu p!t
stocks. for. although the people are economlzlng
as not before In many years. there is an IRE
duCible minimum In their requirements, below
the level of which dealers cannot anord 10 let
their stocks of merchandise fall. Some little
duickening of business in the steel industry ana
other fields also is reported, but instances OF
men being put again at work in certain plants
matched by announcements of the laying on
of employees in others. Railroad earnings con-
tinued slackening of industrial and mercantiie
activity and curtailment of output, and Whlch
give rise to apprehensions. in not a few cases
likely 10 be realized OF coming cuts IN uiFi-
dends, as well as of reCeiverShips for the weak
lngs. One minor road, once included In the I'LL
fated Cincinnati, Hamilton & Dayton-Pere Mar
r<.1ao into
week and some others appear destined for the
same fate: but the great majority of the rail-
roads of the country need fear in the current
crisis nothing more serious than the possible
necessity of reducing dividend returns TO their
shareholders. They have made liberal expendl-
lures in the prosperous years IN placing anu
keeping their property in high state or EN-
cheney. and in the period of lessened earnings
are enabled to decrease expenses to a consider
able degree by postponing much maintenance
work for which otherwise funds would have TO
be found by some means or other Inc de-
ferrng of these expenditures like the hano-to-
mouth buying in the mercantile field, means that
with the restoration of confidence. giving rise TO
the prospect of earnings once more satisfactor-
ily large. there will come orders from the rail-
roads which will enable the steel ran mills again
to be run capacity and give the equipment
companies full employment such Improvement
being synchronous with that in all other depart
ments of industry When the chanse VIII come
it is yet too early to venture to predict Much
Will depend upon the size of the harVestS or the
coming fall. speculation as to which is at pres
ent valueless. and upon possible developments in
/ le OF
the uncertainties and disturbances of which the
country is just embaTking. Meanwhile 1t seems
clear that the depression has not run its fuh
course. Commodity prices are still declining,
the index number of one Of the great CONNER
cial agencies February l showing the lowest
| level reached since August 1, l9oo- ANY com
modify can be marketed at a price for there Is
no such thing, strictly speaking as 'oVerpro-
duction'; and the downward drift OF prices VIII
not continue beyond the level at which, under
the operation of the law OF supply and demand
the Iessened buying power will be enabled to ap-
sorb the existing stock of commodities-a con-
crete example OF which is seen IN the recent MS
tory of the copper metal market.
Exports of domestic products in January
reached the great total of SIPS 900 600 in value.
and although the figures of imports are not yet
available. it is probable that they VIII show a
/ decided decrease. as for two or three months
/ past rejecting in large measure the cutting off
( of luXuries on the part OF the American people.
! The charging of exports and the diminishing of
! imports play highly important part IN the I'M
! provement Of the general SITUATION since tney
strengthen the credits of the United States in
the International field and assure more fully its
ability to check If desirable. an outward move
! r7ent of gold. The foreign exchange market has
! been depressed during the week. under the In
fuence OF heavy offerings Of bills in anticipation
J Of allotments European bidders for the new
city bonds. The money markets, both here and
! in London. have hardened slightly, the effect
having been TO check the advance IN the bond
market The weekly statement of the associated
banks of this city Saturday showed gain
of trif1e 81 100000 in the surplus reserve,
which is in excess of $4,000, 600. While business
I
| plus reserve may be expected to remain abnor-
naIly large. the only possibility Of decrease of
any Importance being from further calls which
may be made for the return by the local depos-
tary institutions of further instalments of their
| government deposits, now standing at $4,000
/ On0. for the of the Treasury Department
The State Superintendent of Banks Satur
dav issued his second weekly statement Of aver
/ age condition of the state banks and trust
panies Of New York City in an enlarged form.
which presented the figures of all OF the state
banks and ell of the trust companies. and in d.
third table the totals Of the institutions outside
of the Clearing House. A combination of this
third table with the Clearing House statement
shoWs slight changes in the aggregates of the
loan and deposit items from the figures of the
preceding week and a gain in cash of about
Sc 600 600 comparing with the preliminary esti-
mated gain of about So. 100000.