New-York tribune., 1908-01-20
THE WEEK IN WALL STREET.

The stock market in the week just ended has
been subject TO diverse influences. the most
potent of which has been the continued i'm
proven1ent in the money market situation, ano'
after various ups and downs. the closing prices
on Saturday showed as rule satisfactory net
gains as compared with the final figures OF the
preceding week Profit taking was in progress
during several days, based upon the judgment
that the advance which began around the nrsl
of the wear had fairly measured the actual I'M
provement attained; and there was resuiAp-
ton of short selling in some Volune Dy OPP
orators who believed that the recovery hao
been carried too far and that unfavorapie rae
tors in the situation were being ignored III tnis
market is TO follow post-panic precedent, IL
will by and bye relapse into duiness; puI ifolii
present indications the advance would seem not
yet to be at its elimination
Predictions that money would before long De
q .,dr,,e in the market" are in fair way TO be
realized Judging from the rapidity with whlch
funds are piling up at this centre Inc pre-
liminarv estimate the bank statement OF sat
urdav. based upon the known movements OF
roope,, during the week for gain IN cash
h,- the Associated Banks of about S10,ooo,oVo-
The actual gain was more than s2b,oVoVVo Vi
which a very large proportion must nave rep
resented the restoration to the banks OF money
withdrawn in the panic period for boarding;
and this movement, which indicates the raplo
re-esta blishment of confidence in the soundness
and strength of financial institutions ma! pe
expected TO result in similar heavy increases Ia
cash holdings by the banks for several weeks
70 come as the enormous store of money hoaro-
ed has only in part been placed again IN CHI
crlatton to become the basis for addltlonaI
credit when the revival of business confidence
shall once more call for the extending OF credit
on a scale commensurate with the neeos OF IN
dustrial and commercial activity.
In Europe as in this country, signs that the
money crisis is definitely past are multiplying
The Imperial Bank of Germany has at length
reduced its discount rate the maintenance VI
which in the face of reductions by the BANK
of England and the state institutions of France
and Austria had given rise to apprehension OF
unravorable commercial developments in Ger
many: and later in the week the BANK OF Eng
land once more lowered its rate, that action
giving assurance that the situation abroad was
permanently bettered. The heavy increase IN
cash holdings by the local banks naturally dur
ing the last week resulted in the lowering or
money market rates, call money dechmns 10
around 8 and 3l2 per cent and time luhos ~
5I4 and So per cent for sixty Gays 10 siA
months The supply of time money, indeed
was in excess of the demand, borrowers snow
ing disposition to hold off for better rates. IN
view of the low figures for call money
The decided easing Of these rates, however,
has had its natural effect of advancing the for
eign exchange market, sterling rates at lhe eho
of the week having risen so sharply as TO sug-
gest the beginning of a gold export movement
within a short time. The working balance OF
the Treasury is still at a very low level ana
the probability is that the Secretary Will, now
that the money strngency is fully at an emu,
decide upon making extensive Withdrawals OF
government deposits from the banks, Whlch now
hold about s24U, ,000 600 of such moneys ana the
general deposits of which are being so largely
increased by the return Of currency from hldlns
and nv the lessened demand for funds resulting
from the stagnation of trade and industry Inc
recall OF government deposits on large scaie
NAV be expected stiffen the IoanlnS rates
for money and thus check the advance IN for-
eiyn exchange, and enable the United states
10 retain at least for the present, the gold which
was brought in during the panic period
The assertion of eminent bankers that the gold
then imported was not borrowed from Europe
but was sent as payment for commodities act
ually sold is seen TO have been accurate from
the foreign trade statement OF the United states
for December, well as for the TWO preceding
months Exports of merchandise IN Decelnoef
were S2O7 436, the largest total for any month
in the country's history, while the imports, W.
2sS771 were the smallest for any month since
the summer of 1906 and the smallest for Decem-
Der in four years. The excess OF exports over
imports, 14,990,665, was the largest on record
The enormous exports for December were only a
little larger than those for November, which mad
made new high record at S2O4,4f4'2l', "hlle
the October exports amounting to s1S0,256,OS5,
were so large to show that the marketing OF
foodstuffs and cotton abroad, with the purpose
of alleyiating the critical conditions nere hao
been pushed with energy from the very De-
ginning of the troubles
The conner market is showing some evidence
of ouickening, but activity in this important IN
dustry cannot be looked for until the general
situation shall further improve. The dividend
on Amalgamated Copper was last week again
c,It in two. but that action by the directors had
been fully expected and did not serve to break
the market price of the stock All of the i'm
portant copper producing companies have now
adjusted their dividend rates to the unfavorabe
conditions prevailing, but the worst seems TO
have been passed in the industry, although re-
coyery NAV be slow. Railroad earnings continue
10 make poor exhibits. decreases in gross now
being reported, rejecting directly the lessened
traffic consequent upon the general shT1nkage
in business Some of the weaker roads may,
before the depression gives place TO the album
dant activity and prosperity which cannot be far
distant be obliged to suffer reorganization, but
in general it may be said that the railroads arc
in position to weather the storm, while finding
il necessary for time practise strict economy
and to defer the extensions and bettermentS
which shall enable them to handle profitably and
without waste the heavy business which in nor
NAL seasons is offered them.
The bond market. like the stock market. has
recently had an increase OF activity after long
period Of dulness One of the evidences of that
two underwriting syndicates, that in Smelters'
Securities and that which formed to take
the issue of Sl0,000,000 Western Union bonds,
the subscribers 10 both syndicates having been
unable TO market more than very small per
centagc of the bonds which had been under
written.
MISCELLANEOUS SECURITIES.