The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-08
FINANCIAL NEWS
AND COMMENT
Heavy Close in Stocks at the
End Of a RcactiOnary
Week.
CASH LOST BY THE BANKS
Price Of Capital High Compared
CASH LOST BY THE BANKS
Price Of Capital High Compared
With Rates for Credit
Political Factors.

StUrhs closed the week without ac-
CELEBRATION of the reactionary tendency.
which had been more or less in evidence
since Monday. but without signs OF any
trend toward a pronounced rally. Perhaps
they will respond IN the coming week to
such announcements as may be vouch-
safed by news Developments. but the mar
ket has looked lately as though II needed
new impulses to sustain the advancing
movement which was carried on so
strongly last month There were some in
dications yesterday OF support rendered to
the list by interests committed to the con-
structive side, although this involved the
purchase Of no very large amount OF
stock The dealings have for several days
been growing more and more professional
and trading yesterday was on only mod
crate scale of activity.
New York Central was again n weaken
ing influence, and the Rock Island securi-
ties made "A further collapse. The fact
that the proposed New York Central
merger Is under inquiry by the Interstate
Commerce Commission was the only rea-
son alleged for the renewal of decline in
the shares. The status of Rock Island at
fairs sufficiently explains the market for
Rock Island securities. The Rock Island
reorganization II regarded az a problem
of exceeding difficulty " 1t involves effort
TO preserve a status for all the outstand-
Ing Issues. tnlttu states Sttel TcSlSttu
pressure and helped to steady quoted
values downward generally. but the final
tone of the market was heavy,
Inconsiderable changes appeared In the
weekly bank statement. They were rathe.
interesting, for cash decreased abJu,
s3.50o.0 900 in the actual showing. whereas
a gain of two or three times tina: imoui'
had been estimated In advance. Loans in.
creased only $1,000 o0. but deposits were
reduced $1,000. oO0. Il result about sli,.
100000 out Of technical bllshCr with tn
alterations in the cash ANA loan itrm. %
account of the falling off in d"pCsit thcr.
was trivial gain IN the surplus rcScrN"
Foreign events during TIL we,h wcr,
Immediately encouAi ging. although SOM
Of the more remote implic cations inspire,
conservativ. reflections. The great l. N
don stock market was, like our own lc
dictionary and seemed to b. feeling Tho
weight Of new security offerings which
are competing with outstanding issues
The German Bank rate was reduced e
per cent. and the rate at Vienna wen
TO a., per cent. Official figures were
lowered elsewhere hut the price OF credi
- too favorable IN comparison with tn
cost of capital. London continued 10 graz
at new bond issues bearing " per cent
interest and offered at and below -. AN,
a token of the way things are gong Il
afforded BY the announc meat that Hun
gary Is ABOUT ~ PUT pul Ni'''s'''' WV "
~, per cent obligations around 81.
large Belgian Government per cent
loan was quickly oVcrsubsC ribed NJ - an,
the Prussian Government let IL he know
that it would forthwith proceed - horrov
$40, COCOON in addition to the SlnC,nnn ou
Obtained a week ago. continental com
petition for the new South African gol'
arriving Ht London WAS a hint that Euro
pean banking positions were still In Nee
Of strengthening against the borrowing
operations now under way.
domestic uo,iticai news promised t. pro
vide factor Of continuing unCertaiu'
which might have a tendency to restrain
stock market aud general business in
proVement II not tO induce reaction. Thu
lifting Of tho embargo against the cNpor
~ arms to Mexico inaugurated g"o'
deal of discussion about various per
pleAties in our foreign relations. am
Congress disclosed Il mood OF persist'u
rsdicalsm in various directions. such q
the prosecution Of the hill for roguatio
Of the stock exchanges. the con
.iroNcrsy over New tiaN,u matters. I'll
resolutions Tor another inquiry into III
United States Steel Corporation the sub
scrpticn sCcoCdcd to the Postmaster
Generals ,ioVcruurytt ownership schcU'
the ear lent 20 union IaSr's demand 70
exemption from laws againa- "onspirac,
the nature of auti-immgratioh 'ecisla
ures preparing FOR tile iurther rcEulauo
OF interstate commerce.
Trade news was somewhat hopeful. Tn
country's bank cl,arings for the wee
showed another increase. gaining ". y.
cent. over the cleariuss in tho corr spond
ing week last year, The idle freight ca
report as of February | exhibited "A d,
crease OF 5.2lI cars in the net surplu
during the last half of January. HcaN
sales of copper metal were reported
steel orders are expanding, but there
a good deal of reticance about the actu;
price level. According to the commerce;
agencies there has been actual improve
ment In some lines of business to mate
the better sentiment generally displaye'
Railroad matters were Influential
the heaviness of the weeks stock marke
The official statement that a Rock Islam
reorganization was IN prospect Il
rected attention to tne various tend'
places that exist in the railroad list. an
current reports OF railroad earnings ever,
where proved depressing They wei
made all the more depressing by the flu
Their indications OF the Interstate Con
mcrce Commissions intention to allo
much time to elapse before II decld'
tho Eastern rate case At the same tin
the report that the Southern Pacific wou
find It necessary to issue per cent. bon'
at par In order to accomplish need'
financing showed that the cost OF capt.
remains high despite the cheapenlng
credits The lowering of interest rat
for temporary accommodation went o
Ave months funds on collateral securi
falling toward per cent, with sales
six months commercial paper report'