New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-12-03
TIE FINANCIAL SITUATION

The local money markets developed no change
during the week, although there was further
export of gold to the amount of about 81, 700 900.
The condition OF the banks remains unusually
strong for this of the year and, as before
remarked, yesterdays bank statement more nearly
than usual approximate the actual condition
but whether ii does or not ii is the actual condl-
lion and the net statement Of averages which
have influenced the money market during the
last week Call loans rule at an average prob
ably under - per cent, the extremes of ,
and 4 per cent. The last named rate only
u temporary affair on Friday when under the
rules of the Stock Exchange, unless specifically
specified, all call loan, run until Monday. Con
sidering that Friday was the last day Of the
month, when institutions were making more or
less preparations for the payment of December
dividends and interests, the slight furry which
did occur is only additional evidence Of the
abundance of the supply. We hear OF IA few time
loans having been made, but they are too eX-
ccptiona 10 call for special mention. The rates
rule at to per cent, ana exceptionally on qucs-
tionabe collateral as high as > per cent.
In London money in the open market ruled
frmer. and per cent for discount was the COM
mon rate. But the Bank Of England made no
change of its minimum rate of per cent. while
it increased its ratio CT reserve To Liabilities |. -
per cent. The foreign exchange market ruled
dull all the week, with an easy tone, and closed
on the basis of - 81 "a and 81 90 Is respec-
lively for long and short sterling.
A MIXED STOCK SPECU LATION.
1t is an old saying that it is always darkest
before daylight If the axiom has any appll-
cation to the Stock Exchange markets the dawn
Of reason cannot be far removed During the
last week nothing but discouragCment has been
presented to either the bona fdc holders of Sc
curitics or to spectators of bull pr0chvltleS
The deadly parallel column would he in,ereStlng
which printed the sayings Of The rail-,
alongside Of the dismal wailines
which now find expression in every publication
and on the corners of the Street. Then it was
said that the tonnage in sight was beyond the
capacities of the railway system To handle, and
that a prosperous business was insured certainly
for the next SIX months Since then the whe. :
crop of $50 has grown no smaller. but on the
contrary the later estimates exceed those OF a
month ago. The corn crop not only has grown
no smaller. hut has been blessed by such favor
able weather that its movement has begun fully
thirty days earlier than usual
One will seek in vain for change in the gen
crnl situation which has not been favorable But
there has been "A sudden and remarkable change in
the language of railway officials The Interstate
Commerce law has suddenly developed, rs ii Is
now stated, into a powerful engine Destructive
Of values and little or nothing else IS heard eN-
cept that the law must be amended IN order 10
enable railway managers to conduct the business
upon profitable basis. Something very much
like this was heard in the spring of $50. Whlle
the passage of the law was pending. lhat an
experience of eighteen months should show mat
the law was not perfect, and might 'bc amended
so as to be beneficial both 10 shippers and owners
is not remarkable thing But the existing
more from lack of its stringent execution and
application Of the pcnaltic, II provides for dis
obedience than TO the law itself For tull
comprehension Of the troubles during the last
twelve months. perhaps it, is necessary 20 recall the
predictions of its effect which were then made by
nearly all the railroad managers of The country.
The opinions then expressed probably were
honest and. if So nothing can b. more natural
than that managers should have placed their in
dividual interests ia their properties consistent
with their opinions II is matter of history that
during the first six months of the laws applca-
ton both friends and foes of il were astOnishcd
ri its beneficial effects. II will be remembered
that the earnings, both gross and net were
phenomenal, until the Burlington and Quincy
Company directly and through the BURLINGTON and
Northern entered upon the warfare. The Inter
grasped the situation when they plainly intimate
that the majority of rate cuttings has IS origin IN
speculative purposes and adds Nothing seems
more surprising than the fact that railroad man
ager who viii neither take steps by law to put "A
stop to secret cutting of rates which he publicly