The sun., 1909-01-31
FINANCIAL AND COMMERCIAL.
SATURDAY. Jan. 80.


feature of the security market yesterday
and the day before. was resumed to-day
but on somewhat larger scale, The
market was heavy and weak from the
opening. and although the usual rally
occurred at the end Of business owing to
the buying back of stocks sold by specu'
lators for the fall, prices exhibited net
declines generally running TO nearly a
full point. There did not seem to be any
decided support to the market except in
a few instances. although on the other
hand pressure 10 sell was not violent
Rock Island preferred stock formed per-
haps the most prominent exception OF
the kind noted. reason for this being the
fact not commonly we'll understood that
the floating supply Of the stock in Wall
Street has become very small. There
was better tone TO the London market.
and the discount on the new Russian loan
there fell from = Of 1 per cent. to 4 Of
1 per cent. Presumably the more en-
couraged feeling in London was due TO
the prospect that the Bank OF France now
that the Russian loan affair is over, will
no longer interpose a ny obstacle to the
efforts of the Bank Of England to- build
up its reserve. The only announcement
OF financial interest to-day was that Of a
decrease of 2l ,358 in the number OF freight
cars in use on the lines of the railroads
reporting TO the American Railway Asso-
citation. This decrease compares with an
increase OF 10000 cars reported on Janu-
airy g for the fortnight preceding; and
although the decrease in the last two
haa . Ia. 81 fa IL
rather than unfavorable indication as
regards business conditions. The weekly
bank statement was received with the
same minimum Of attention in the financial
district that has long been given toll owing
TO the immense plethora Of idle money.
In that portion of the statement showing
the actual state of the Clearing House
banks at the close OF business on Friday
afternoon there was some revelation of
the effect OF the withdrawal Of money
from the banks by the trust companies
as necessitated by the new reserve law
relating TO the trust company organiza-
tions which goes into effect on Monday.
The banks exhibited therein a decrease of
sI2. 10000 in cash, although in the aver
age figures for the week the loss in bank
cash was only sl,4OOOOO. Under both
forms of the statement there was large
increase in bank loans and small de-
crease in the surplus reserve.
In the last half Of the present week the
security market has been plainly under
the influence of a selling movement
originating very largely, no doubt, among
professional speculative interests. but
also co mprising a certain amount OF real
liquidation. Some legitimate cause for
this has unquestionably been afforded
by evidences that have been accumulat-
ing for some time Of a quieter tone in the
coIntry's general business squirt OF
activity in trade and industrial affairs
induced Immediately after the Presi-
dental election has subsidized. a strong
collateral influence helping the reaction
along being the unseasonably mild
weather Of the winter thus far. Among
the majority Of business men the present
tariff discussion is generally blamed for |
the moderate slackening in trade that |
has been noticed. Relieved by the re- |
suit Of the Presidential contest and en-
couraged by the rapid recovery made in |
the field Of finance proper from the 1907 /
panic. industrial production was resumed |
in many quarters on a fairly large scale |
in The closing months OF last year. But |
the fact that revision OF the tariff is at
hand which, as seems to be generally
will be downward revision,
has resulted apparently in an unwilling
meas Of wholesale dealers in goods and
TO place their orders for new
supplies except on hand to mouth basis.
the impression being strong that there Q is
at least a possibility that they may get
these orders filled at lower prices as the
result Of the expected revision in tariff
duties. Meanwhile of course, stocks Of
and raw materials are piling
up. at any rate in a limited number Of
directions, with the natural consequence
that a tendency is noted toward price
cutting. Uncertainties regarding the
effect upon prices Of the execution Of the
tariff revision programme have always
unsettled business to a greater or less
extent in the past. and il is obvious that
the present occasion is to be no excep-
tion to the general rule. even if business
Is likely TO be less disturbed this time than
il ever has been before. IL is TO be re-
however, that it by no means
follows on account OF the conditions
described we are to have a declining
stock market until the new tariff rates
are fixed upon. As has just been noted.
there are elements of strength in the
present business situation in our country
Of a potency never known before on
occasion. Business still
keeps up splendidly in the West and in
many lines elsewhere. Money is offered
'or lending at such low rate OF interest
hat people who dispose OF their invest
ments generally find extreme difficulty
in reinvesting the proceeds of the sale in
, way at all more advantageous than that
Just abandoned; and hope and conf
ienoe remain firm that renewed business
in the country is after the
Iorce Of every possible retarding infiu-
snoe has been admitted, only a compara-
lively short distance of.