The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-04
FINANCIAL NEWS
AND COMMENT
Stock Market Receivers After
Sharp Decline in the
Early Hours.
A VERY INTERESTING WEEK
Bank Statement a Remarka BILE
One-lmpOrtant Move Of
Morgan 4 Co.

spicuously upon the active speculative
mediums The common excuse for the
weakness was the Mexican situation. but
even at the time of happening the move
ment suggested drive" against the
market more than anything else. The
only question asked was whether the
selling, presuming its speculative origin,
was based on anything really substantial.
The answer to that question may have
been furnished by the subsequent recov.
cry. for whatever the nature OF the SELL
ing pressure. II did not last long and the
second hour saw much OF the ground lost
regained.
The weekly bank statement Of the
Clearing House institutions was, every
thing considered, n remarkable document.
The extraordinary necessities incident TO
the last few days OF the old year and the
fact Of the rise In the call rate on Friday
Go 10 per cent had led to a universal ex-
pectation OF a considerable impair
Of the local bank position. The increase
in the bank surplus reserves Of 32,s0o,000
following an increase in cash of $l1.7ss,-
900 was therefore more or less Of a sur
prise.
On the whole the stock market last
week was rather narrow affair. The
reaction which took place from the high
level made on the upturn could hardly be
considered more than moderate in all the
circumstances. Not only had the market
TO absorb the usual quantity of profit
taking inevitable after a brisk advance Of
the kind recently witnessed but 1t Is al
together probable that renewed specula-
ALI. tal hx.t hA
eral tenor Of the news. Net changes in
prices at the close were not extraordinary
and the general undertone OF the stock
market did not appear To have suffered
any noteworthy change.
The week in the financial world was an
Interesting one " for no other reason
than that it covered the turn Of the year.
at which time there is usually more or less
appre henson on the score OF the year end
settlements to be made. In addition there
we're several important features In the
budget of news with financial appltca-
ton. Perhaps the chief of these in point
Of general interest was the announcement
that members Of the firm Of ]. =. Morgan
4 TO. in response to a chang. in public
sentiment IN regard to these matters
had withdrawn from the directorates OF
n large number OF railroad. industrial and
banking corporations, and would in the
futur. extend this policy even further.
veupment may have been somewhat con-
fused ~ was soon generally conceded that
IN the long run II marked another step
In the direction Of n better popular UNI
derstanding ON many points. and specif-
cnlly an ending az the ''money trust
agitation.
The failure Of big mercantile estab-
iishmcnt announced on Tuesday was re-
sponsibe for no more than ripple in
financial sentiment. II was realized i'm
mediately that just such developments as
this had already been allowed for In finan-
cial calculations. and that any way the
difficulties in which this particular COM
pany found itself were due substantially
10 peculiar circumstances and could not
be considered as at all symptomatic of
general conditions.
Quite naturally the eyes Of Wall Street
were fixed upon the foreign markets. The
state of affairs In Paris engaged attention
particularly. not only ON this side out i'm
London and Berlin as well. on the whole
the year end payments ON the other side
went of very smoothly. especially when
the situation Is contrasted with that a
year ago. a rather extraordinary de-
probation In the reserves of the Bank of
England during the week was noted, but
the unfavOrabe effect OF this showing
WAS neutralzed by general realization that
this was due to the normal movement Of
funds at the years end as result OF an
enormous holiday trade and other sea-
sonal requirements. a pcrceptible easing
Of private discounts at the close OF the
week was greeted as the better indication
Of the real state Of financial affairs abroad
and as providing some justification for
predictions that II might not be long be-
fore the Official discount rates abroad
were reduced. The most unfavorable as
pect Of the International situation Is the
state Of things In Paris. Financial senti-
ment there is undoubtedly still strained.
principally as a result OF political cond-
tions, and until the deadlock in the in
vestment market there Is broken no great
hope Is held out for great improvement.
At home all the developments in the
money market testified to a surprisingly
strong banking position. On Friday the
call loan renewal rate was "a per cent.
and while a maximum rate OF ten per
cent. was touched during the day this
appeared merely due to temporary condi-
lions. A continuation OF the relaxing
tendency In the time money market was a
point that was not lost ~sight Of. As a
matter OF fact the actual figures OF the
bank statement when published on the
following day made the ten per cent.
rate rather difficult to account for.
In the field OF home politics there were
no new developments OF importance The
passage OF the new currency bill was
welcomed with universal satisfaction and
the Congressional recess brought some
thing Of respite from talk OF new anti
trust legislation. The Mexican situation
toward the close OF the week seemed to
take on a somewhat more cloudy appear
ance, but the news from this quarter was
go vague that the financial district was in
clined to reserve judgment.
Considerable comment was aroused by
the publication OF a batch Of railroad earn
ings statements for November covering
many Of the most important Eastern and
Western systems which made a decidedly
unfavorable comparison with a year ago
The most striking feature In this direc-
tion was the report OF the New York Cen
tial system. which exhibited a gross in
crease OF sI.323.0OO and a net decrease
Of no less than 1890. 900. A reduction In
railroad revenues In the last two months
OF the year was anticipated even II tho
showing so far In the case OF the trunk
lines indicates that the falling of In bust
ness has gone ahead rather more rapidly
than was estimated. II Is known thai
December earnings OF the Eastern lines
will make an even poorer exhibit in gross
than November but that Let will show
up better. In line with the railroad reports
was the testimony Of the progress OF trade
and industry from all quarters OF the
business world, Bank clearinIs once more
shrank and the expectation was that the
frst month Of the new year would be
marked Dy a continuation of the current