FINANCIAL REVIEW OP 1900. 



221 



from G per cent, at the beginning of the year to 3} 

 per cent, in May for first-class four to six months' 

 single names. 



The clearings of the New York associated banks 

 in 1900 amounted to $52,634,201,865, against 

 .$60,761,791,901 in 1899. Clearings of all banks in 

 the country amounted to $86,160,587,352, against 

 $94,178,089,233 in the previous year. The clearings 

 on Dec. 27, 1900, at New York were the largest 

 on record, amounting to $364,013,290. The table 

 at the foot of page 220 is the New York Clearing 

 House statement of bank averages at the begin- 

 ning of each quarter in 1900 and at the end of the 

 year. 



Stocks. The stock market, though irregular 

 and comparatively inactive at the beginning of the 

 year, gradually developed strength under the lead 

 "of New York Central, and the tendency was gen- 

 t-rally upward for the investment properties to the 

 end of January, influenced by growing ease in 

 money. The speculation seemed to be entirely un- 

 affected by the unsettled London markets in the 

 closing days of the month, caused by news of the 

 disaster to the British forces in South Africa com- 

 pelling their retreat across the Tugela river after 

 the temporary occupation of Spion Kop. The an- 

 nouncement that the Third Avenue Railroad Com- 

 pany had an excessively large floating debt, and 

 was thereby financially embarrassed, caused a 

 sharp decline in the stock of that company. The 

 continuance of the war between the independent 

 refiners of sugar and the American Sugar Refining 

 Company, together with unfavorable developments 

 at the annual meeting of this company, made the 

 stock exceptionally weak. The tone of the market 

 was generally strong early in February, influenced 

 by declarations of first dividends by several lead- 

 ing railroad companies, notably the Union Pacific, 

 Ihe Baltimore and Ohio, and the Reading, and the 

 )eculation was also favorably affected by large 

 mrchases of the bituminous coal shares and of 

 locks of Southern roads, buying of the former 

 :ing stimulated by the activity in iron and coal 

 ind of the latter by a rise in the price of cotton. 

 \fter the middle of the month a further decline 

 in Third Avenue Railroad stock, in American 

 Sugar, in United States Rubber, and in People's 

 Gas, together with unfavorable bank statements, 

 had a depressing effect upon the general market, 

 inducing speculative sales. There was, however, 

 a partial recovery by the end of the month. In- 

 fluenced by the passage of the gold standard bill, 

 which became a law on the 14th, and by the ab- 

 sorption by the Metropolitan Street Railway Com- 

 pany of the Third Avenue Railroad, through which 

 provision was made for the adjustment of the enor- 

 mous loans made by that corporation, the stock 

 market opened quite strong in March, and there 

 appeared to be very confident buying, not only 

 by domestic, but by foreign speculators of leading 

 American railroad properties for the remainder of 

 the month. The European purchases seemed to 

 be directly influenced by the establishment of our 

 currency upon a gold standard, and there were 

 indications, which were observable in the foreign 

 exchange market, that large amounts of the stocks 

 so bought were hypothecated with New York 

 banking houses instead of being shipped abroad. 

 The advancing tendency of the market was checked 

 by realizing sales early in April, and the business 

 was less active while the tone was irregular during 

 the first half of the month. Then it was announced 

 that the American Steel and Wire Company had 

 closed a number of its mills because of a decrease 

 in the demand for its productions, and the execu- 

 tive manager of the company gave expression to 

 quite discouraging views regarding the condition 





of the steel trade. The above-noted action of the 

 company and the later reduction in prices of the 

 products of the steel arid wire mills in order to 

 dispose of accumulated stocks, together with the 

 request made by the company that deliveries of 

 large amounts of material by the Federal Steel 

 Company be deferred, which request caused that 

 company to close part of its mills, had a demoral- 

 izing effect upon the stocks of all iron and steel 

 concerns. These stocks had been greatly advanced 

 in price during the previous month, and the fall 

 tended unfavorably to affect all the industrial 

 properties, and the whole market was more or less 

 unsettled. There was, however, a prompt recovery 

 in the railroad stocks, influenced by easier rates 

 for money and by an improved condition of the 

 bank reserves, which encouraged large purchases 

 of leading stocks at the decline. Moreover, there 

 was a feeling among speculators that the situation 

 in the steel and iron trade had been exaggerated 

 with a view unfavorably to influence the market. 

 Disclosures in the following month, however, indi- 

 cated that there really was good cause for the 

 action of the Steel and Wire Company, and that 

 the production of steel and of iron had, under tin- 

 influence of the extraordinarily high prices which 

 had been ruling, been excessive and entirely un- 

 warranted by the demand. Consequently, inquiry 

 by consumers of these goods fell off, and it failed 

 to be stimulated by the general reduction in prices 

 which was made in order to market accumulated 

 stocks. The unsettling effect upon the speculation 

 of the decline in the shares of the iron and steel 

 properties resulting from these disclosures was in 

 some measure counteracted by news of the adjust- 

 ment of the differences between the local gas com- 

 panies, by the rehabilitation of the Third Avenue 

 Railroad Company through the issue of new bonds, 

 and by prospects for the settlement of the war 

 between the sugar refiners, and the market irregu- 

 larly recovered. The failure of an important com- 

 mission house through an effort to corner cotton 

 had somewhat of a disturbing effect toward the 

 end of the month, and the market was irregular 

 at the close of May. In June the tendency of 

 stock values was generally downward for the 

 greater part of the month. The opening of the 

 presidential campaign was a partially disturbing 

 factor owing to the prospect that the political lines 

 would be closely drawn between the gold standard 

 and free silver coinage, as was the case four years 

 previously. The unsettled condition of industrial 

 enterprises and important declines in steel and 

 iron and in cotton goods had a depressing effect 

 upon manufacturing interests. Unfavorable crop 

 reports and damage to spring wheat in the North- 

 west more or less affected the status of the grain- 

 carrying roads, and an export movement of gold 

 contributed to speculative selling of stocks. The 

 outbreak of the rebellion in China, the isolation of 

 the legations at Pekin, and the military operations 

 by the allied forces, including those of the United 

 States, for the relief of the legations, had a disturb- 

 ing influence, and tended to repress speculative 

 operations on the Stock Exchange. 



The market was quite inactive during July, and 

 though there were recoveries in some of the special- 

 ties and a generally firm undertone, the volume of 

 transactions on the Exchange was quite small. 

 The action of the Democratic National Convention 

 at St. Louis .clearly defined the free coinage of 

 silver as the paramount issue of the presidential 

 campaign, and some confidence was felt in the 

 indorsement at the election of the existing admin- 

 istration. The crop conditions grew more favor- 

 able owing to quite general rains in the Northwest, 

 and the indications pointed to a better yield of 



