New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-08
.gr FINANCIAL MARKETS.
-,crRETY MOVEMENTS UNEVEN.
~,oN OF THE FEDERAL TREASURY
RAILROAD EARNINGS.

Sunday. March I-p m.
interests Of this country as set
hi. Inaugural Address mas ihspieu "'
~'" .-,,h hope and encouragement TOT tue 'e
men ,,aus,rial activity throughout the coun-
wv" ..,rees men have given the PRESIDENTS
u'. ,roualiied approval Foreign journals
hesitate TO make DEMONSTRATIONS Vi "e"''s
av because they know that the proposed
sPP,r,sn, ~ the tariff will be In the interests
American manufacturer ana iaoore'
g. ,han in their own. and they cannot per-
~ - axpected to relnQu,sh the advantage
" ,,ev have been enjoying without some
..oros 81 ill-will and disappointment. Inc
S,.os ~ the Republican party are calculated
F-.o-s Industrial prosperity in this country;
o,r ola obligations rather than incur new
. rrotect the Treasury against revenue
80 and 10 bind more frmly-our friendly re-
-. with all countries and sl Powers
- ,ew Administration starts with cheerful
end with actual improvement In business
- The mercantile agencies, which keep
- watch upon business progress. report
"a ,pt gradual change for the better. while
-, Seveloprents in the week have accent
"a the strength OF u lderlying conditions and
ao,ad the favorable financial status Of many
or,can railroad corporations. Railroads can
- 10 successful or prosper unless favorable
1orditions prevail in business undertakings. ana
I'm :, is possible to record substantial increases
=, traffic returns. assurance can be given that
,rars,rial activity is beginning. The volume OF
-.yrcad tratfic is not yet large, but 1t shows in
,,ast parts Of the country gradual Improvement
.,s for February railroad earnings as rule
in CORRESPONDENCE
stree ls@2 . ,.,u.o,oa
&, the week affecting railroad hnanclerihs
.s the announcement Of the refunding opera
80 decided upon by the Lake Shore ana
Wchean Southern Railroad. by when the
psr cent bonds OF the company maturing be-
irvesn 1895 and 1903 viii be refunded on
hass OF 81. per cent The fact that an issue on
s,0ps) OaJ 81 per cent bonds has been SOLO
ior this purpose makes the undertaking one OF
the largest known in the history Of American
rallroai Is: while the Importance OF the opera
,ion not only enhances the value or ana At
tracts attention 10. the Lake Shore properly
HIT affects railroad properties in general. WINE
holding out an interesting future Tor Na!uaDie
cbaDces in railroad economies The great re-
ductiOn In interest charges proposed unoer lhe
new Arrangement makes new stanuaTo %
credit FOR American railroads. ana Demon
strstes the substantial financial condlton OF
American railroads. despite the depression ana
bankruptcies Of the last few years The adVah-
tage OF lower interest charges should be po-
factor IN attracting iHiciesl " tHc
Of many railroads. for it is probable that within
the next five years vast reductions in interest
charges Will be made by refunding operations
Sl2 and Per cent basis lor oohus nov
the New-York Central. Chicago and North
western. Jersey Central. Chicago. Milwaukee
and ST. Paul. Illinois Central. Louisville ana
Nashville and Pennsylvania have bonded issues
maturing within the next three years ana II Is
more than likely that they will be refunded on
considerably reduced interest basis from that
TOW prevailing. Between 1897 and l'"o bonds
10 the amount OF S23i. 1913, JOO, bearing IN most
cases from 6 10 per cent interest Will fall
due and II they are refunded at 3fe or 1 per
cent the saving will amount 10 more IMAM
s6001.r10 a year. The increased value whlch
refunding operations will give 10 shares was
reflected in the advance in Lake Shore STOCK
TO l12. the highest price on record; and the
mere suggestion that NewYork Central might
adopt similar operations caused comparatively
heavy dealings in that stock. and served 10
stimulate the whole list Of railroad shares.
THE MONETARY SITUATION.
Money continued in good supply. but the move
ment from the interior was light, While the de-
nand for accommodation from borrowers in the
time money and commercial paper markets was
better than in several weeks The statement or
the associated banks for the week showed an
expansion in the loan item or 4.4o@ lVo otner
changes resulting in a decrease in the surplus
reserve OF 81 964 $50. Cash holdings decreased
SlNl 100 made UP by loss in legal tenders OF
s2l61 900 and an Increase in specie OF 81 IL ~,
gold for legal tenders in the week while they de-
posted in Clearing House vaults more than
81 ODO0oO making total deposits so held by the
banks above S5O,OO.Oo0. The Treasurys gold
balance increased in the week 1898, 262, now
standing at $lJ0.915.S2l. Money on call repre-
sentng bankers balances lent at l12QlA per
cent banks as a rule quoting per cent the mini
mum. and trust companies the Stock Exchange
rates. In time money the demand was better
for long periods. and a considerable number OF
sterling loans were renewed for sixty days at
% %a1 hat a me
were making for heavy borrowing upon large
importations of merchandise TO be made In ex-
pectation OF changes in the tariff law. Rates
were per cent for sixty days, 212 per cent for
three months. 2l2Q3 per cent for four months
and per cent for six months The commercial
paper rates remained unchanged at 3Q1 per
cent for the best names for all periods, and above
Cor names not so well known. There was no
pressure OF offerings IN the market. but falr
supply Of frst-class paper was noted. The Lon
don markets were affected by the situation IN
the East. but 10 no great extent outside OF the
stock markets discount rates in London and on
the Continent only showing slight variations
Money on call In London closed the week at TAG
~ per cent. with open market discounts at 9-16
dlss per cent. In Paris the open market rate
was y per cent. and in Berlin 2as per cent The
Bank Of England's minimum discount rate re-
NAMED at per cent. The bank gained in the
week 1906 bullion and held at the close 1873. O29.-
Ji6 The foreign exchange market dull and
steady. with demand sterling at 4.S1A. Long
sterling was triis frner at 1854. due TO pur-
chases OF long bills for investment and to easier
discounts in London al the end OF the week.
The inquiry for remittance in connection with
foreign selling in the stock market was larger.
hut not sufficiently heavy TO cause any material
advance in rates. Posted rates for sterling
closed az 4.sG and ass for long and short bills
respectively Rates for actual business closed
follow:
Sterling .......~.....4s7sas's: Isl. .s5s
keichsnar.s .......... g51 50 0Ss,
ouuders .............. 405-l6
A larger business was done both in stocks and
bords than IN the preceding week, and prices
were generally higher. although the declines
thursday and yesterday prevented any note
worthy improvement for the week. Al the close
All h..