New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-03-12
Tuesday. March LIP. m.

Great Scott Bank loans Sill 10000 lower
than one wear ago, and deposits down S2s,ooo'ooo
from ono vcar aro What an exhibition Of stag
nation, But like the beautiful full moon, they
vet ARE too high, too high; must come down
But il is hardly three weeks since all the min
ions of the hear" spectators at the Stock IN
change were bowling about the dangerous eA-
panson of the banks. Yet IN those thrcc weeks
there has been the quiet liquidation when always
takes place at this time Of the wear whereby
the bank loans were reduced s.. OOO.O0o and the
deposits were reduced 81 100000. without any
disturbance in either the mercantile or spccula-
tive money market. The expansion and con-
traction of bank figures almost as regular
AS the flow and cbb of the tides and II Is only
since Wall Street has become educated up 10 Il
speculation called scientific that their regular
expansions and contractions. which have occurred
for wears and always Will OccuT have been pa
iadcd 10y ignorance ana Tor pay as phenomenal
conditions. As the country grows the hSuIcs
of the New-York banks. being situated IN the
financial and commercial centre of the American
Continent, must continue 10 grow. In 1872 New
York bank loans of S21j0OO.000 deposits Of
S2l5, O00, 900. and cash holdings OF S4Sooo,OVr
legal tender and specie TALL special deposits. but
counted as reserve, $!S,OOO.0OO: total S'l ,pOO-
900. were regarded rs expansions. The bank
loans then S6O,0OO,OOO greater than the
deposits. Now the loans are ~. iuu.oVV sss Ilan
The deposits. ana a speculative interest cOntinu-
ously describes danger, with no speculation in cN-
istence 10 be hurt, or any That threatens the
stability Of legitimate enterprises.
II is curious now what IS accepted as perfectly
legitimate operation for one railroad company. #
proposed by another company for equally lcsit-
mate purposes will set all the Wall Street bull
pups TO snarling and to ugly acts. President
Roberts. of tie Pennsylvania Railroad, several
years ago said, if the time ever came when 1t
was not necessary 10 increase It's capitalization,
it would mark the beginning Of the decay Of The
Pennsylvania system. Ills theory was That the
facilities OF the company must grow with the
growth Of the country, and that that required
additional expenditures Of capital exactly the
same as a merchant buys or leases all additional
building to suit the requirements OF his cxpand-
ing business The Pennsylvania Company tells
of It's necessities and of It's intention IA increase
its capital. It's stockholders are pleased at the
opportunity TO increase their holdings al par. and
the bondholders pleased with the additional
security which is 10 be given them. But let any
other railroad in the country make an announce
mcnt of such an intent and signal IS olvcn for
bear estimates and bear" onslaughis against
market values. Why things are "thusly" is a
problem respectfully referred 10 the consideration
of railroad managers both East and West. who are
NOR intimate with bankers and brokers' Offices
in New-York that with their duties MS trustees.
WHAT WAS DONE ~ STOCKS
In to-day's stock market there was marked
subsdencc of the excitement IN Phlladep hia and
Reading stock Yesterdays excitement was due
more to some transfers Of stock which has been
purchased for keeps" than 10 any speculative
movement The transfers, and consequently the
necessity for shifting loans, made all the fuss
there was no corner. and no attempt to make one.
To-day the stock loaned for use at from ! A
down to 1-32 for days usc, and the price in
the market huctuacd only per cent-bctwccn
20 ~ and 3s38 and closed al 3gI-s We
think the short interest in the stock tonight j.
nearly as large as it has been at any time. Those
were false prophets who yesterday said that the
Philadelphia and Reading squeeze would hurt
the whole market. But at and after the opening
they did their level best to make their statements
true. II was too big job for bank accounts that
Yesterday we're weakened by the payment OF : pei
cent per DAY for the use Of large blocks Of Read
ing stock 50 after the early declines the whole
market steadily but slowly improved. and closed
strong at generally materially higher figures than
last night.
THE BOND MARKETS.
The Treasury to-day secured only $4,000
bonds: per cents. $1,000. and II per
cents $65. 500. At the Stock Exchange there
were sales of per cent registered NJ LIZ, and
4 l-2 per cents at 1903 IL. Annexed are the
closing quotations: