New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-07-23
financial.
The Financial World.

points below these prices. II stocks were widely
scattered among the speculative public, and the
big men after unloading, had been DESTROYS to
buy back cheapy have had enough In the
past three or four weeks to have made breaks
in the market upon which the buying could have
been effected very easily. All bad news, how
ever has found supporting orders in the mar
ket to counteract its effect: and so II happens
that while business is dull the volume Of trans
actions has shrunk, and the market Is very
wearsome to both bull and bear alike; yet 1t
continues strong, and the tendency Is upward.
1t may in some respects be compared to the
period OF sleep between the working days. The
bull operators say this is time to be quiet, but
in the fall there will be activity enough.
These remarks apply mainly to the railroad
stocks There was very extensive unloading or
industrials on the public in the Spring months;
and the way many Of these stocks have tumbled
since. and now remain pretty near where they
fell: indicates what happens when wholesale
holders have distributed to retail buyers. We
have a good many evidences also that the pub
lie will not take anything new in that line. For
example one recently formed corporation called
Trust. OF course, as everything is that in these
days.. advertised it's } per cent bonds extern
slvely and managed to get trife less than ten
per cent taken. The underwriters were stuck
with the other ninety per cent. to their great
surprise and no little dismay. II new bonds
won't go Il may be imagined what chance there
is for new stocks.
The cramping thing the stock market is
the money situation 1t brought to a summary
halt the upward movement started by the Bos-
ton G. Albany lease. Dear money never made
bear market, any more than cheap money made
a bull market. But dear money, or the fear OF 1t,
may halt bull speculation temporarily, and
this is present position. Yesterdays bank
statement evidently d disappointment to
the Street, the market Immediately lost
strength after its appearance. Loans and de-
posts were heavily decreased; the surplus re-
serve was increased but by less than Sl'4ooooo,
and the disappointment was evidently IN mat
The surplus is now about Sl2O0pOOO against
S43 100000 for the same week last year. Much
is heard about the money in the trust COM
panles as If it were something new.
There is no new thing in it, When the surplus
reserve of the banks last year was S43,OOo,Ooo,
the trust companies undoubtedly had the same
relative amount Of money that they have now;
that is to say, trust company money was just
as large a reserve force to the banks last year
as II is this year Therefore the money stua-
t!on this week as compared with the same week
last year. is not changed by the trust COM
panies We had reserves behind the Si3OoO,OoO
then as we have them behind the Sl2O00Ooo
now 1t might be supposed from much or the
recent talk and writing in the Street, that the
trust companies had brought some new ele-
ment into play.
The surest guarantee against bad money
squeeze is the fear of it, and the precautions
which that fear causes to be taken. We shall
.fF,aax vat u
narrow and hating stock market and sens-
tive money market, until it is seen how much
money the movement of the crops is going to
draw from this centre. OF course the larger
the crop the money it takes TO move II;
but the better for bull speculation afterwards.
The bulls count upon great railroad earnings
for the last six months OF the year. They
reckon that general trade being even larger and
more active than it was last year, the West
bound business of the roads will be greater; and
therefore II the crop movement were no larger
there would be an increase OF earnings; but
with a large Spring wheat crop, and the biggest
corn crop ever promised. they anticipate in
creased earnings from that source also.
II the big men have the stocks they are EVIL
IDENTIFY calculating on these factors to make a
market for them at the proper time II Is plain
they have not sold their New York Central; lit
tie If any ST. Paul They are buying Rock Isl
and, and the talk is becoming more plain OF an
extra dividend on this stock Rock Island and
Burlington are the great corn roads, and with
one OF the biggest crops ever raised In sight,
the anticipation of big earnings seems natural.
There is also Enthusiastically good buying OF At
Gibson 1t is pretty hard to swallow Atchlson
preferred above 60, but this does not blind one
to the fact that the men of millions are buying
it above that figure and talk in the most con-
fident manner OF its selling much higher
prices.
Among the Southwestern securities 1t looks
as II those of the Missouri Pacific would sell
higher particularly the bonds. The collateral
trust Is of 1917 quoted at par the os OF
1920 at 97i2. 1t is difficult TO see why there
should be a difference in price between them,
for 1t can hardly be figured out that there is any
difference in their intrinsic value. At par the
bonds look cheap and ii cannot be long way
off before dividends on the stock will be In or
der. Missouri Pacific has been spending It's
money largely for Improvements. that for six
years past it's expenses. including taxes. have
averaged 50 per cent of gross earnings. II owns
all the stock Of the Iron Mountain road and
that road also has been putting all its surplus
into improvements. OF course the time Will
come when some of this surplus will he avail
able for dividends, which will go 10 the Missouri
Pacific. AS to the security OF the bonds. II
needs only to point out that no more than ~
per cent OF last years gross earnings were re-
quired for first net charges Very few roads
can make a better showing than this. One may
add also, that II Atchson preferred is going up.
Atchison adjustment As ought to sell we'll above
their present price of So
AS bearing on prices it is Of interest TO note
that other things than what stock may DO
paying at any particular time determine its SELL
ing price. AS witness Northern Pacific pre-
ferred, and Union Pacific preferred; the former
paying per cent and the latter 3, yet both
selling at the same figure. 1t is. OF course, ex-
pected that the Union Pacific will begin per
cent dividends this fall; but it is by no means
certain that IL will.