New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-01-02
THE BANKS AND TIE MONEY MARKET

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THE BANKS AND THE MONEY MARKET,
The bank exchanges Of last week were $780,
600, 900 smaller than in the corresponding week
Of 1886. But il should be remembered that the
transactions at the Stock Exchange last week were
confined to four days, This, in connection with
the fact that the sales OF stocks were less than
half Of what they were in the week OF 1886,
clearly demonstrates that the clearances Of the
five days arising from commercial and mercantile
transactions largely in excess Of those Of the
week Of last year.
the
Ysss Dss Dss
The local money market ruled generally at
4a5 per cent. with exceptions toward the close OF
the week as high 7a8 per cent. Good CONNER
cal paper found ready sale at Sac per cent Inc
domestic exchanges were quiet and without
feature. An easier tone prevailed in the foreign
exchange market but the business done was I'M
usually small, and the rates closed on a basis OF
S4 SO SO and "a 50 "a respectively for long and
short sterling.
The interest and dividend payments to be made
during the month Of January are unusually heavy.
The Government interest, of which S6,O00,O00 is
payable at New-York (s4, 900, 900 paid on Friday
and Saturday. amounts to S9,36s,000 The
Daily Stakeholder on Tuesday will print de-
payable. The amount Of railroad bonds on which
interest will be paid is 81 1906 SO, 60, and the
interest thereon to be paid is $50 o3s,4 Alb, The
par value Of the railway stocks which will pay
dividends is $3.50 S07,127 the dividends thereon
are Sl4 0s5, 03s. The interest to be paid by lead
ing cities, municipalities, etc. amounts to ST.
900, 900, and dividends to be paid on bank stocks
in Ncw-YorlS. Philadelphia Boston and Baltimore
amount to 100000. The aggregate, includ-
ing the Government interest. is about s70,0OOOOO.
STOCKS DULL EVEN FOR THE HOLIDAYS.
In the last week of the old year the Stock EX-
cnange markets were more than usually dull even
FOR the holiday season. After allowing for
diminution in the amount of transactions because
tho Stock Exchange was open only four days. the
record of sales of 733559 shares of stock compares
favOrably only with the preceding week. when the
sales were only 2.470 shares. But notwith-
standing the stagnaton of speculation the market
developed strength and confidence in the future;
ties was small the supply was even
less. The fluctuations in prices during
he week were unusually small. Nearly all stocks
closed Friday evening materially higher than they
did Friday December 23 The bearish influences,
by word of mouth, tissues and type were no less
energetic than they have been in preceding weeks
The unsolved problem between the Reading Com
panies and their emplo,es was used for effect on
values to it's fullest possible extent. The un-
peasantness existing between the southwestern"
railroads not only kept alive in the rem I'M
brance of operators by daily but also by semi
hourly contributions to Chicago rumOrs through
the agency Of Wall Street news bureaus. Con-
litiOns that a week ago were said to be at Their
worst. according to the rumOr-nongers have
hourly grown more disastrous And yet there is
not particle of Trustworthy information that
shows that the situation between those railroads
was changed at all during the week. excepting
that the lapse Of time has brought nearer the in
evitablc day of peace and q restoration OF former
.ates. Des tie the wOc-beyOne representations re-
erred to. the whole group of granger stocks show
final improvement for the week of ga to J.?
per cent and Philadelphia and Reading. after
I'M wifi "a n Ia closed
che same ms it did n week aGO. while Delaware.
Lackawanna and Western gives final gain of
rs per cent.
CONSERVATISM OF TIE VANDERBILT LINES.
Some disappointment was experienced at the
failure of the Vanderbilt trunk lines to raise their
rates for dividends, and therefore late in the week
there was speculative selling of those stocks,
and their prices closed irrcguarly changed from
a week ago. The speculative holding OF those
stocks, however, is small that any insignificant
trading in them indicates now, as 1t has hereto
fore, sales for the short account. The large
holders of those stocks now in control OF their
management and are satisfied with the present
rate of dividends upon their investments. intend
ing TO remain in perpetual control through their
permanent investments in the properties they have
declared the purpose Of placing the conditions OF
the companies upon such sound basis that the
question of payment IF dividends never will be
raised again, no matter what may be the general
stuat on The failure to advance the rates of
dividends at last weeks meetings is no more an
evidence of lack Of confidence in profitable
payment of the small dividends a year ago the
evidence of the expectation of poor traffic during
1887 New-lork Central and Hudson River then
earned so per cent for the quarter and paid only
l per cent, Lake Shore earned Asa per cent for
the year $50 and only paid per cent Michigan
@red 5 den fF S0S nd
per cent and only paid IA per cent. We feel
authorized to say that the managers of these
properties confident of being able TO raise the
dividends during the present year and still carry
forward as handsome sllpluscs from the earnings
of 1888 as they have done from the earnings OF
1887.
This matter of opinion would be Of little con-
sequence if the weekly organ of the Stock Ex,
change pessimists tby necessity had not improved
the opportunity to say" The year 1 ss is before
us. We have an expression OF opinion as to The
promise in the action and the statements of the
managers of the companies just spoken OF (the
vanderbilts) and of the Lackawanna. Although
all these corporations show large surplus over
the dividends declared the managers have de-
cined to increase the dividends, expressly on the
ground that the outlook is so full of uncertainties
that a conservative policy is the wisest course"
We do not believe any authority can be cited for
the foregoing statement other than that OF persons
whose executive action consists in leading forlorn
hope Oh the bear side of securities. The readers
of THE TRIBUNE may find some consolation in the
fact that the authorities which now burrow after
dismal Outlooks identically the same as those
who in the early part of December, 1886, rested
upon so high pinnacle Of prosperity that even
Mother Earth was hardly visible from their rOost.
Union Pacific was specially strong all the week
on anticipatiOns that the companys statements
will show net earnings for the year equal to about
per cent on the stock. Norfolk and Western
preferred also was strong, with only moderate
dealings: it closed 2 per cent higher at 49, on the
expectation that the company's net earnings for
1887 will be equal to more than 3 per cent on the
preferred stock, possible small div
dend and confidence that when the
junction with the Louisville and Nashville
Railroad is completed the earning ca
pacity Of the com pany will be largely increased.
Western Union was the football of the traders,
and therefore its advance Of So per cent to 70 3S,
its decline to II IA and its final closing at n 7s
possessed no significance
Subjoined is our usual table of the highest,
lowest and final prices and number OF shares sold
of forty-four active or representative stocks, to-
gether with the final prices of week ago: