The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-01-10
or more. Lake Shore wa, helped sys the
report that some $50, $4,000 OF that COM.

pany's old high interest bearing bonds
had already been exchanged fer the. new
Rounding 3iss with a consequent saving
In annual interest charges OF S5Ss,Sib.
The demand for, bonds also continued
very heavy. There WIS one transaction
OF 800. 900. OF New York, Chicago and ST.
Louis As at 1917 Prices OF high grade
bonds generally are now at the Highest
and the pressure OF investment, funds
force money! into the middle and lower
grade isues. Realizing at the close re-
duced prices considerably from the bes.
and In some cases wiped out 'gulns. This
caused an easy closing with net changes
mixed between gains and losses, ~
Tho expected has happened In the stock
market this week In an outbreak OF
something very like a Juror OF specula-
tlon and an upward rush OF prices OF
pretty much In all grades OF securities.
There was halt In the anticipated
awakening on Monday and Tuesday and
some declines due to several causes, but
primarily 10. disappointment at the con-
tlnued Stiffness OF the money market
pending the finnl payment Of the Union
Pacific settlement. This lavolved the
withdrawal from the market OF IS, SOS. 40l
and Its payment into the treasury and
this operation, together with accumula-
lions OF funds incident;to regular Janu-.
airy disbursements, resulted In raising
the rate OF money 10 per cent on Mon
day. BY Wednesday afternoon the
funds thus discussed begun to come buck
into the market for investment and the
governments outgo OF interest and re-
'demp.loE had offset the Union Pacific
~ y,,,onty trhn iap1tnaa I,,a prlp .
stocks Of earlier In the week were quick
~ retrieved and professional operators
and commission house brokers acting for
outside speculation began 10 vie with
each other marking up prices. To-day's
bank statement shows The complete re-
Mobilization OF the New York money mar
ket, which has been accomplished not only
by the, release of funds At this centre, but
by large Inflow OF money from Interior
points,invitedby therecent high rates FOR
money. Notwithstanding TINT additional
deposits OF $40, 52S,S0O have lifted the level
OF the legal reserve by s.. 623, 075, the heavy
cash increase OF 50. 107, 300 leaves the
surplus reserve ss,475,Se5 higher than last
week. Conditions indeed promise such a
plentltudc OF money that money lenders
see their prospects marre9. and there Is
talk OF releasing to the governments; It's
deposits, which were left III New York
banks at the time OF part OF the Union
Pacific payments. These deposits
amount to something over $4,000. 900.
Part OF them are secured by government
bonds whose redemption is already pro-
vided for, SO that their surrender would
involve simply bookkeeping exchange
Il But the taking up by the government
OF the total amount would probably In
volve the withdrawal; OF a sufficient sum
In the money market to serve quite
effectively to steady rates OF interest
The high rate for money was reinforced
as factor of stock market depression
by the forebodings expressed by two
prominent railroad presidents on, Mon
day. that there would be no profit In COM
petltive railroad business as there had
been none, unless Congress would all-
thorize pooling. Recent bull leaders OF
speculation made rather ostentatious
display Of Encouragement over these
uSerances.. Later developments suggest
that the official tripldadon may nave
been expected with view to affecting
projected legislation. and that the bull
spectators may have far over-rldden
their then existing fears as to lay in an
ample line Of stocks looking 10 the later
dispersion OF the cloud upon their minds
with the rise In prices. Railroad earn
ings reported for the week were an effec-
tive cure for much OF the gloomy appre-
hension OF railroad officials In the FOR
elgn exchange market the feature OF. the
week has been demand which is specu-
la,tive and based on the prevailing low
rate OF exchange and the belief that the
need for exchange will grow within the
next few weeks. The average level of
stock prices has risen between and 3
points during the weel:. The Wander
bilts lead, Lake Shore being points
higher and Ner York Central over 4
points higher. ..
Business In bond; has been OF large
proportions since Wednesday and some
large advances are recorded. Prices
throughout are higher. Sales for the
week 81, 2Oo. 900. i,
Government bonds are higher on the
week, prices having been bid up X per
cent for the old IS coupon, X for do reg
igtered. z for the IS and per cent for the
new 4s.
The Financier says:
The condition outlined In the analysis
Of the New York bank statement for De-
cember 81, indicating an easier money
market, are rejecting a still more note
worthy degree In the exhibit OF the clear
ing house institutions for the week end
ing January 8. The banks have gained
heavily in cash and deposits, and the
surplus reserve is ss,475,s25 larger than
seven days ago. The statement includes
the dividend period covering the first OF
the year. What this means Is shown In
the fact that the clearinSs for the week
In New York exceed one thousand mil
lion dollars. The expansion OF S10,52S,-
600 in deposits and the gain OF ss,19T, 800
cash, represent the payment OF interest
which have been made. Part OF the. In
crease, however, can be attributed to the
interior movement, which Is bringing
$4,000, 900 into New York every week,
This money was first attracted by the
temporary high rates prevailing, but It's
return from this time on will be purely
normal operation. The reserves OF the
New York banks for years past have
been swe!led from January we'll into the
spring season by interior remittances
the expansion being regulated by cur
rent business conditions. There Is no
reason for believing that this movement
will be less now t;nan In former years,
and the only inference is that money VII!
be easier. As the trade balance IL favor
OF the United States seems TO be 81 owing,
it would not be strange IL the invest
men.S in sterling exchange now approx!-
imating S20.0O0.000 were Increased. This,
however. Is dependent so!5iy on the
course Of money rates nb DAD. The
Bank Of England's reserve. Is lower than
for years bttt as q heavy inc ease is usu.
ally made after the beginning OF the
year, 1t looks as L. money In Europe IL
following The same course as in the
United States. In that case the surpius
funds Of this country will have to seek
domestic channels for employment. It
need not be repeated tina t will neces-